COURSE UNIT TITLE

: CORPORATE FINANCE

Description of Individual Course Units

Course Unit Code Course Unit Title Type Of Course D U L ECTS
MBA 5047 CORPORATE FINANCE COMPULSORY 3 0 0 5

Offered By

Business Administration (English)

Level of Course Unit

Second Cycle Programmes (Master's Degree)

Course Coordinator

PROFESSOR PINAR EVRIM MANDACI

Offered to

Business Administration (English)

Course Objective

The aim of this course is to provide an overview of concepts and analytical techniques related to corporate finance including ratio analyses, financial planning, valuation, capital budgeting and cost of capital for financial decision making.

Learning Outcomes of the Course Unit

1   Describe the environment of business in order to understand the role of corporate finance.
2   Interpret the financial performance of a company by using the ratio analysis.
3   Construct pro forma balance sheet and income statement for long-term financial planning.
4   Identify short-term financial management and net working capital in order to understand the relationship
5   Apply the basic valuation models of stock and bonds for debt and equity financing
6   Apply time value techniques to different patterns of cash flows, pointing out concepts of time value of money
7   Apply risk and return measurement techniques in order to make financial asset investment decisions
8   Evaluate long-term investment projects of a corporation through capital budgeting techniques
9   Determine the cost of equity and debt to calculate the weighted average cost of capital

Mode of Delivery

Face -to- Face

Prerequisites and Co-requisites

None

Recomended Optional Programme Components

None

Course Contents

Week Subject Description
1 Introduction to Corporate Finance
2 Time Value of Money
3 Bonds, Bond Valuation, and Interest Rates
4 Risk, Return, and the Capital Asset Pricing Model
5 Stocks, Stock Valuation, and Stock Market Equilibrium
6 The Cost of Capital
7 Mid-term Exam
8 The Basics of Capital Budgeting: Evaluating Cash Flows
9 Cash Flow Estimation and Risk Analysis
10 Financial Statements, Cash Flow, and Taxes
11 Analysis of Financial Statements
12 Financial Planning and Forecasting Financial Statements
13 Working Capital Management
14 Review

Recomended or Required Reading

Eugene F. Brigham, Michael C. Ehrhardt, Financial Management: Theory and Practice, 12e, Thomson Southwestern, 2008.

Planned Learning Activities and Teaching Methods

Lecture, problem solving, presentations.

Assessment Methods

SORTING NUMBER SHORT CODE LONG CODE FORMULA
1 MTE MIDTERM EXAM
2 STT TERM WORK (SEMESTER)
3 FIN FINAL EXAM
4 FCG FINAL COURSE GRADE MTE * 0.30 + STT * 0.20 + FIN* 0.50
5 RST RESIT
6 FCGR FINAL COURSE GRADE (RESIT) MTE * 0.30 + STT * 0.20 + RST* 0.50


*** Resit Exam is Not Administered in Institutions Where Resit is not Applicable.

Further Notes About Assessment Methods

None

Assessment Criteria

1. The students will describe the financial performance of a company through ratio analysis.
2. The students will. prepare pro-forma financial plans.
3. The students will identify short-term financial management and net working capital.
4. The students will apply time value of money techniques for investment decisions.
5. The studends will apply risk and return measurement technieques to make their security investment decisions.
6. The students will apply basic valuation models to stocks and bonds.
7. The students will distinguish between and among the capital budgeting techniques.
8. The students will determine the cost of capital of a company.

Language of Instruction

English

Course Policies and Rules

1. Plagiarism of any type will result in disciplinary action.
2. Attending at least 70 percent of lectures is mandatory.
3. All assignments should be submitted on time. Otherwise will not be accepted.

Contact Details for the Lecturer(s)

Prof. Dr. M. Banu Durukan
E-mail: banu.durukan@deu.edu.tr
Tel: 0232 3018248

Office Hours

Tuesday 12:00-13:00 or by appointment

Work Placement(s)

None

Workload Calculation

Activities Number Time (hours) Total Work Load (hours)
Lectures 13 3 39
Preparations before/after weekly lectures 12 2 24
Preparation for midterm exam 1 20 20
Preparation for final exam 1 25 25
Preparing assignments 12 2 24
Final 1 2 2
Midterm 1 2 2
TOTAL WORKLOAD (hours) 136

Contribution of Learning Outcomes to Programme Outcomes

PO/LOPO.1PO.2PO.3PO.4PO.5PO.6PO.7PO.8
LO.155553555
LO.255553555
LO.355553555
LO.455553555
LO.555553555
LO.655553555
LO.755553555
LO.855553555
LO.955553555