| MATHEMATICS (TURKISH, PHD) | |||||
| PhD | TR-NQF-HE: Level 8 | QF-EHEA: Third Cycle | EQF-LLL: Level 8 | ||
| Course Code | Course Name | Semester | Theoretical | Practical | Credit | ECTS |
| FIN6403 | Theory of Finance | Fall | 3 | 0 | 3 | 10 |
| The course opens with the approval of the Department at the beginning of each semester |
| Language of instruction: | En |
| Type of course: | Departmental Elective |
| Course Level: | |
| Mode of Delivery: | Face to face |
| Course Coordinator : | Dr. Öğr. Üyesi DİLA ASFUROĞLU |
| Course Objectives: | This course focuses on the theory of finance and modern financial techniques with a focus on finding and investing money based on the quantitative decission making. It introduce the most important concepts and analytical tools used in financial decision making, the structure and functioning of financial markets, the basic principles of valuation, and capital investment to create investment opportunities. The relationship between firm value and risk clarifies how firms should raise as well as investing capital including financial reporting. |
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The students who have succeeded in this course; 1)Understand the structure and causes of changes in financial markets; 2)Evaluate the factors affecting stable markets of developed economies; 3)Interpret the causes of financial crises in developing countries; 4)Prepare financial planning and audit financial reports; 5)Understand the functioning and development trends of the national and global financial system; 6)Identify the main issues related to the information efficiency of financial markets; 7)Learn the prominent features of the functioning of financial markets in emerging economies and their differences from the markets of developed countries; 8)Learn finance, budget system, public finance, financial market; the main results of recent research in the field of finance theory; relations between the main segments of financial markets; efficient market hypothesis; types of financial intermediaries and their functions; understanding the effectiveness of financial transactions and determine the basic issues related to the information efficiency of financial markets. |
| This course introduces the basic theoretical aspects of managerial finance related to finance theory and practice studies within the scope of the doctoral program.The course examine the valuation of financial assets, cost of capital and capital structure decisions. Capital budgeting, functions, structure as well as classification of financial markets, presentation of financial instruments according to the type of financial instruments, maturity instruments, method, and organization method of transactions. Examining intermediaries in the international financial market, securities market and market components theoretical and practical aspect, as well as market efficiency, trading and valuation in financial markets including capital asset pricing model, efficient market theory, arbitrage and excess return, market efficiency and balance, investment. The timing of the decisions includes behavioral finance issues. |
| Week | Subject | Related Preparation | |
| 1) | Introduction to finance theory: | ||
| 2) | Financial system, financial markets, modern finance theory | ||
| 3) | Cash flow analysis | ||
| 4) | Security analysis and valuation including bonds and stocks | ||
| 5) | Firm value or the entire value of the enterprise, taking into account the capital structure. | ||
| 6) | Capital budgeting decisions under uncertainty and risk, optimal replacement timing | ||
| 7) | Capital budgeting decisions under uncertainty and risk, optimal replacement timing | ||
| 8) | Midterm Exam | ||
| 9) | Cost of capital, cost of induvidual sources of capital, and weighted average cost of capital. | ||
| 10) | Capital structure decisions theoretical and applied approach | ||
| 11) | Working capital management, Financial planning and budgeting | ||
| 12) | Financial crises and risk management | ||
| 13) | Selected topics in finance | ||
| 14) | International finance and monetary policy | ||
| Course Notes: | J. C. Van Horne and J. M. Wachowicz, Fundamentals of financial management, Prentice Hall. Berk, N., Corporate finance, Lecture notes, İstanbul, 2022. Essential of Corporate Finance, Ross- Westerfield- Jordan, McGraw Hill Irwin publication. J. Berk and P. DeMarzo, Corporate Finance - The core, Pearson publication |
| References: | -N. Berk, Finansal Yönetim, 13. Baskı, Istanbul, 2020. Wall Street Journal, Financial Times, New York Times, Economist,and other financial press. |
| Semester Requirements | Number of Activities | Level of Contribution |
| Attendance | % 0 | |
| Laboratory | % 0 | |
| Application | % 0 | |
| Field Work | % 0 | |
| Special Course Internship (Work Placement) | % 0 | |
| Quizzes | % 0 | |
| Homework Assignments | % 0 | |
| Presentation | % 0 | |
| Project | % 0 | |
| Seminar | % 0 | |
| Midterms | 1 | % 50 |
| Preliminary Jury | % 0 | |
| Final | 1 | % 50 |
| Paper Submission | % 0 | |
| Jury | % 0 | |
| Bütünleme | % 0 | |
| Total | % 100 | |
| PERCENTAGE OF SEMESTER WORK | % 50 | |
| PERCENTAGE OF FINAL WORK | % 50 | |
| Total | % 100 | |
| No Effect | 1 Lowest | 2 Low | 3 Average | 4 High | 5 Highest |
| Program Outcomes | Level of Contribution |