BUSINESS ADMINISTRATION
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
IF2221 Corporate Finance I Spring
Fall
3 0 3 4
The course opens with the approval of the Department at the beginning of each semester

Basic information

Language of instruction: En
Type of course: Non-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. ÜMİT EROL
Course Objectives: This is the first course of two consecutive corporate finance courses in the second year which aims to provide the student with the basic tools for making financial decisions. This course will introduce the student to basic financial theory and concepts of corporate finance. This course will also ensure an understanding of relationship between financial theory and its practices. It will cover some of the theory and practice of decision-making within the corporation More of the emphasis will be on financial valuation, capital budgeting and cash flow analysis.

Learning Outputs

The students who have succeeded in this course;
I.to be able to understand what corporate finance is and how financial managers decide.
II. to be able to analyze the financial statements of a firm.
III.to be able to identify market cap, financial leverage and operating leverage.
IV.to be able to figure out the essentials of short term financial policy.
V.to be able to understand the logic behind the pricing of securities.
VI.to be able to understand weighted average cost of capital
VII.to be able to evaluate investment projects with capital budgeting methods.

Course Content

corporate finance, financial statements, financial leverage and operating leverage, pricing of securities

Weekly Detailed Course Contents

Week Subject Related Preparation
1) Introduction to Corporate Finance, What is Corporate Finance, The Goal of Financial Management, Financial Management Decisions, Capital Budgeting, Capital Structure, Working Capital Management.
2) Overview of Financial Statements: The Balance Sheet: Assets, Liabilities and Owners’ Equity, Net Working Capital, Debt versus Equity, Income Statement.
3) Some Primary Concepts: Market Value, Book Value, Nominal Value, Asset Value, Net Asset Value. Financial Leverage, Operating Leverage.
4) Short Term Financial Management and Working Capital Management: Short Term Financial Planning, Some Aspects of Short-Term Financial Policy.
5) Short Term Borrowing, Cash Management, Credit and Receivables, Inventory Mangement: The Economic Order Quantity Model
6) Time Value of Money, Present Value, Future Value, Annuity, Perpetuity. Concepts of Risk, Return and Discount Factor
7) Introduction to Valuation: Bonds and Bills. Differences Between Bonds and Bills. Pricing of Bonds and Bills The Relationship Between Bond Prices and Interest Rates Duration, Modified Duration and Bond Price Volatility, Trading Strategies.
8) Introduction to Valuation: Bonds and Bills. Differences Between Bonds and Bills. Pricing of Bonds and Bills The Relationship Between Bond Prices and Interest Rates Duration, Modified Duration and Bond Price Volatility, Trading Strategies.
9) Valuation of Common Stocks: Basic Characteristics of Stocks, Capitalization Rate, The Basic Issues About Common Stock Valuation, Dividend Based Stock Valuation Models (DDM)
10) Cost Of Capital: Cost of Debt, Cost of Equity, Weighted Average Cost of Capital (WACC)
11) Capital Budgeting: Project Appraisal Essentials, Free Cash Flow Concept, Earnings Before Interest and Tax (EBIT), Corporate Tax, Non-Cash Net Working Capital, Depreciation, Amortization, Capital Expenditures (Capex)
12) The Process of Evaluating Capital Budgeting Projects: Payback Rule, Accounting Rate of Return (ARR), Discounted Payback, Net Present Value (NPV), Internal Rate of Return (IRR), Profitability Index, Conflicts Between NPV and IRR and How to Resolve These Conflicts.
13) The Process of Evaluating Capital Budgeting Projects: Payback Rule, Accounting Rate of Return (ARR),Discounted Payback, Net Present Value (NPV), Internal Rate of Return (IRR), Profitability Index, Conflicts Between NPV and IRR and How to Resolve These Conflicts.
14) Cash-Flow Analysis: Preparing a Cash-Flow Chart, Project Feasibility Analysis with DCF, Sensitivity Analysis, Break-Even Analysis.

Sources

Course Notes: Principles of Corporate Finance by Brealey and Myres, 7th Edition. Essentials of Corporate Finance by Ross, Westerfield and Jordan, 6th 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 1 % 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 10 10
Quizzes 0 0 0
Preliminary Jury 0 0 0
Midterms 1 25 25
Paper Submission 0 0 0
Jury 0 0 0
Final 1 35 35
Total Workload 112

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) Being able to identify problems and ask right questions
2) Having problem solving skills and developing necessary analytical attitude
3) Comprehending theoretical arguments along with counter arguments in detail
4) Gaining awareness of lifelong learning and being qualified for pursuing graduate education
5) Applying theoretical concepts in project planning
6) Communicating efficiently by accepting differences and carrying out compatible teamwork
7) Increasing efficiency rate in business environment
8) Developing innovative and creative solutions in face of uncertainty
9) Researching to gather information for understanding current threats and opportunities in business
10) Being aware of the effects of globalization on society and business while deciding
11) Possessing digital competence and utilizing necessary technology
12) Communicating in at least one foreign language in academic and daily life
13) Possessing managing skills and competence
14) Deciding with the awareness of the legal and ethical consequences of business operations
15) Expressing opinions that are built through critical thinking process in business and academic environment