ECONOMICS AND FINANCE
Bachelor TR-NQF-HE: Level 6 QF-EHEA: First Cycle EQF-LLL: Level 6

Course Introduction and Application Information

Course Code Course Name Semester Theoretical Practical Credit ECTS
IF1512 Introduction to Finance Fall
Spring
3 0 3 8
The course opens with the approval of the Department at the beginning of each semester

Basic information

Language of instruction: En
Type of course: Departmental Elective
Course Level: Bachelor
Mode of Delivery: Face to face
Course Coordinator : Dr. Öğr. Üyesi BAHAR KÖSEOĞLU
Course Lecturer(s): Dr. Öğr. Üyesi HAKKI ÖZTÜRK
Prof. Dr. NİYAZİ BERK
Prof. Dr. İPEK ALTINBAŞAK FARİNA
Course Objectives: This is the first course in finance in the department of international finance. This course aims to provide a fundamental background for the future finance courses. This course is an introduction to capital markets and corporate finance. The objective is to introduce the student to basic concepts of financial management of a corporation and capital markets. Upon completion of this course, the student is expected to learn the major concepts of finance and most importantly to think logically and systematically in financial terms.

Learning Outputs

The students who have succeeded in this course;
I.to be able to learn organization of a firm.
to be able to identify shareholder wealth maximization, principal agent problem
II.to be able to understand how financial markets work
III.to be able to establish basic concepts of financial markets and institutions
IV.to be able to learn time value of money, present value and future value.
V. to be able to understand how securities are priced in financial markets.
VI.to be able to learn the major concepts of finance

Course Content

organization of a firm, principal agent problem, financial markets work, financial markets and institutions, time value of money, pricing

Weekly Detailed Course Contents

Week Subject Related Preparation
1) Types of Business Entity, Organization of Corporate Firm, The Role of Financial Management, Financial Management Decisions
2) The Goals of the Firm, Profit Maximization and Shareholder Wealth Maximization, Principal-agent Problem, Agency Costs, Asymmetry of Information, Shareholder, Stakeholder.
3) Financial Environment: Markets, Institutions, and Interest Rates
4) Financial System, Capital Markets, Money Markets, Primary versus Secondary Markets, Financial Institutions, Financial Instruments.
5) Basic Financial Statements of a Firm: Balance Sheet Identity, Assets, Liabilities, Equity
6) Overview of Income Statement, Concepts of EBIT and Net Profit.
7) Interest Rates, Real versus Nominal Rates, Simple Interest Rates, Compunded Interest Rates.
8) Time Value of Money, Opprtunity Cost, Present and Future Value
9) Annuity and Perpetuity, Compounding, Concepts of Risk, Rate of Return and Discount Factor.
10) More on Annuity and Perpetuity, Annuity Tables, Finding the Number of Periods.
11) Characteristics of Bills, How Bills are Bought and Sold, The Valuation of Bills
12) Features of Bonds, How Bonds are Bought and Sold, Pricing of Bonds. The Relationship Between Bond Prices and Interest Rates.
13) Characteristics of Stocks, Capital Gain, Dividend Gain, Common Stocks, Preferred Stocks.
14) How Common Stocks Are Traded, Logic Behind The Pricing of Stocks, Capitalization Rate.

Sources

Course Notes: Essentials of Corporate Finance by Ross, Westerfield and Jordan, Sixth Edition.
References: Mevcut değil

Evaluation System

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 1 % 10
Presentation % 0
Project % 0
Seminar % 0
Midterms 2 % 40
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

ECTS / Workload Table

Activities Number of Activities Duration (Hours) Workload
Course Hours 14 3 42
Laboratory 0 0 0
Application 0 0 0
Special Course Internship (Work Placement) 0 0 0
Field Work 0 0 0
Study Hours Out of Class 0 0 0
Presentations / Seminar 0 0 0
Project 0 0 0
Homework Assignments 1 30 30
Quizzes 0 0 0
Preliminary Jury 0 0 0
Midterms 2 40 80
Paper Submission 0 0 0
Jury 0 0 0
Final 1 40 40
Total Workload 192

Contribution of Learning Outcomes to Programme Outcomes

No Effect 1 Lowest 2 Low 3 Average 4 High 5 Highest
           
Program Outcomes Level of Contribution
1) Build up a body of knowledge in mathematics and statistics, to use them, to understand how the mechanism of economy –both at micro and macro levels – works.
2) Understand the common as well as distinctive characters of the markets, industries, market regulations and policies.
3) Develop an awareness of different approaches to the economic events and why and how those approaches have been formed through the Economic History and understand the differences among those approaches by noticing at what extent they could explain the economic events.
4) Analyze the interventions of politics to the economics and vice versa.
5) Apply the economic analysis to everyday economic problems and evaluate the policy proposals for those problems by comparing opposite approaches.
6) Understand current and new economic events and how the new approaches to the economics are formed and evaluating.
7) Develop the communicative skills in order to explain the specific economic issues/events written, spoken and graphical form.
8) Know how to formulate the economics problems and issues and define the solutions in a well-formed written form, which includes the hypothesis, literature, methodology and results / empirical evidence.
9) Demonstrate the quantitative and qualitative capabilities and provide evidence for the hypotheses and economic arguments.
10) Understand the information and changes related to the economy by using a foreign language and communicate with colleagues.