COURSE INFORMATION
Course Title: FUNDAMENTALS OF CORPORATE FINANCE
Code Course Type Regular Semester Theory Practice Lab Credits ECTS
BAF 233 B 3 3 0 0 3 5
Academic staff member responsible for the design of the course syllabus (name, surname, academic title/scientific degree, email address and signature) NA
Lecturer (name, surname, academic title/scientific degree, email address and signature) and Office Hours: Nertil Mera , Tuesday 9:00-11:00
Second Lecturer(s) (name, surname, academic title/scientific degree, email address and signature) and Office Hours: NA
Teaching Assistant(s) and Office Hours: NA
Language: English
Compulsory/Elective: Compulsory
Classroom and Meeting Time: E-110 A: 14:30 - 17:15 (Tuesday)
Course Description: BAF 233 - Fundamentals of Corporate Finance: Finance function and role of financial manager, financial statements and analysis, cash flow concept, time value of money, risk versus return with a consideration of liquidity, financial forecasting, planning and control, working capital policy, current asset management, capital budgeting and related techniques.
Course Objectives: The primary objective of this course is to familiarize the student with basic concepts of corporate finance which is the life blood of any business and its various decision variables in the areas of financing, investment and dividend decisions. This course will introduce you to the theories and techniques of managing capital resources and uses within the framework of shareholder wealth maximization. A substantial part of the course is devoted to the proper methods of computing cash flows and determining market values. In addition, we will examine the sources of capital available to businesses and learn how to allocate assets efficiently
COURSE OUTLINE
Week Topics
1 Review of Syllabus: Introduction to the Course
2 Overview of Corporate Finance
3 Financial Statements, Taxes and Cash Flow
4 Working with Financial Statements
5 The Time Value of Money + Quiz
6 Discounted Cash Flow Valuation
7 Review Before M-Term Exam
8 Midterm Exam
9 Interest Rate and Bond Valuation
10 Equity Markets and Stock Valuation
11 Introduction To Capital Budgeting
12 NPV and Other Investment Criteria
13 Making Capital Investment Decisions
14 Review Before Final Exam
Prerequisite(s): NA
Textbook: Essentials of Corporate Finance, Stephan A. Ross, Randolph W. Westerfield and Bradford D. Jordan, McGraw-Hill 9th edition.
Other References: Fundamentals of Corporate Finance, Brealey, Myers and Marcus (any edition)
Laboratory Work: NA
Computer Usage: Yes
Others: No
COURSE LEARNING OUTCOMES
1 Understand the fundamental principles of corporate finance
2 Understand financial statements, taxes, cash flows and how to work with financial statements
3 Understand the ideas behind the time value of money and be able to calculate the value of cash flows for different financial instruments
4 Learn how to apply some very important methods like NPV, IRR and payback period used in capital budgeting
5 Analyze a range of real-life financial situations using the concepts, frameworks and theories learned throughout the course
COURSE CONTRIBUTION TO... PROGRAM COMPETENCIES
(Blank : no contribution, 1: least contribution ... 5: highest contribution)
No Program Competencies Cont.
Bachelor in Banking and Finance (3 years) Program
1 The students are gained the ability to look at the problems of daily life from a broader perspective. They gain the needed skills not only to understand economic problems in banking and finance but also to construct a model and defend in meaningful way. 4
2 They have knowledge about the finance and banking. 4
3 They have knowledge about the money and banking. 4
4 They have knowledge about the international finance and banking. 3
5 They have ability to use mathematical and statistical methods in banking and finance. 4
6 They know how to use computer programs in both daily office usage and statistical data evaluations in banking and finance department. 2
7 They have necessary banking and finance skills that needed in private and public sector. 4
8 They are intended to be specialist in one of departmental fields that they choose from the list of general economics, finance economics, public finance, corporate finance, finance management, international finance markets and institutions, banking and central banking, international finance and banking, money and banking, international trade and banking. 4
9 They have ability to utilize fundamental economic theories and tools to solve economic problems in banking and finance. 4
10 They are aware of the fact that banking and finance is a social science and they respect the social perspectives and social values of the society’s ethics. 4
COURSE EVALUATION METHOD
Method Quantity Percentage
Midterm Exam(s)
1
35
Quiz
1
10
Final Exam
1
45
Attendance
10
Total Percent: 100%
ECTS (ALLOCATED BASED ON STUDENT WORKLOAD)
Activities Quantity Duration(Hours) Total Workload(Hours)
Course Duration (Including the exam week: 16x Total course hours) 16 3 48
Hours for off-the-classroom study (Pre-study, practice) 16 3 48
Mid-terms 1 10 10
Assignments 0
Final examination 1 15 15
Other 4 1 4
Total Work Load:
125
Total Work Load/25(h):
5
ECTS Credit of the Course:
5