Advanced Fundamentals of Corporate Finance

Program Type:

Thesis

Course Code:

FE 613

P:

3

Lab:

0

Credits:

3

ECTS:

10

Course Language:

English

Course Objectives:

Gain insight into the challenges and opportunities that an international company will face in making the right investment, financing and working capital decisions, and ways to deal with these challenges and opportunities.

Course Content:

The main topics covered in the course, which provides a comprehensive overview of corporate finance issues, are as follows: Valuation methods: Firm valuation; capital structure theory; valuation of long-term investments; dividend policy; other applied topics in corporate finance (For example, ownership structure, mergers, corporate control, agency theory, capital raising, market signals, and international issues. Students will develop theoretical foundations by making analyzes, critiques, and presentations of real business problems, mini-case studies, and scientific articles. they will have the chance to see how it takes place in practical applications.

Teaching Methods:

1: Lecture, 2: Question-Answer, 3: Discussion, 4: Simulation, 5: Case Study

Assessment Methods:

A: Testing, B: Homework

Vertical Tabs

Course Learning Outcomes

Course Learning Outcomes	Program Learning Outcomes	Teaching Methods	Assessment Methods
To have a good understanding of the basic financial concepts and methods that managers in institutions need to know when making effective and successful financing, investment and distribution decisions.		1, 2, 3	A,C
To be able to solve real corporate finance problems using basic concepts and techniques.		1, 2, 3	A,C
To be informed about the answers given to corporate finance questions that are still unresolved in theoretical or empirical scientific studies.		1, 2, 3	A,C
To be able to present, synthesize and constructively criticize scientific studies in the field of corporate finance effectively.		1, 2, 3	A,C

Course Flow

COURSE CONTENT
Week	Topics	Study Material
1	Introduction to Financial Management, Basic Questions Discussion	RWJJ 1-4. Chapters
2	Valuation: Firm Evaluation, Various Approaches to Evaluation.	CWS 14. Chapter
3	Valuation: Bond Valuation Bond Types, Debt and Stock Comparison.	RWJJ 5,6. Chapters
4	Valuation: Bond Valuation Bond Types, Debt and Stock Comparison.	RWJJ 5,6. Chapters
5	Valuation: Real Company Valuation Examples, article presentations examining the accuracy of Various Valuation Approaches.	Course Notes
6	Capital Structure Theory, Taxes, financial difficulty, agency theory, asymmetric signals, optimum capital structure.	RWJJ 14-15. Chapters CWS 15. Chapter
7	Capital Structure Theory, Taxes, financial difficulty, agency theory, asymmetric signals, optimum capital structure.	RWJJ 14-15. Chapter CWS 15. Chapter
8	Planning and Selection of Long-Term Investments	RWJJ Chps. 7,8, 9, 12, 17.
9	Planning and Selection of Long-Term Investments	RWJJ Chps. 7,8, 9, 12, 17.
10	Planning and Selection of Long-Term Investments	RWJJ Chps. 7,8, 9, 12, 17.
11	Midterm	Textbook 8. Chapter
12	Dividend Policy and Related Issues	CWS Chp.16, RWJJ Chp.16
13	Applied Corporate Finance and International Issues.	RWJJ Chp.20
14	Applied Topics: Going Public, Raising Capital, Risk and Venture Capital.	Course Notes
15	Applied Topics: Agency Theory; Mergers and Acquisitions; Executive Fees; Effects of Board of Directors and Investor Profile.	Course Notes

Recommended Sources

RESOURCES

Textbook

Corporate Finance: Core Principals and Applications, Ross, Westerfield, Jaffe, and Jordan, 3e, McGraw-Hill. (RWJJ)

Other Resources

Course website, lecture notes, supplementary article set, financial markets lab, scientific calculator, online resources, excel type software program, and recommended supplementary books:

Copeland, Weston, and Shastri, Financial Theory and Corporate Policy, Pearson. (CWS)

Brealey, Myers & Marcus, Fundamentals of Corporate Finance, McGraw-Hill. (optional)

Tirole, Theory of Corporate Finance, Princeton University Press. (optional)

Assessment

ASSESSMENT
IN-TERM STUDIES	NUMBER	PERCENTAGE
Mid-Term	1	34
Assignment	14	66

	Total	100
CONTRIBUTION OF FINAL EXAMINATION TO OVERALL GRADE		40
CONTRIBUTION OF IN-TERM STUDIES TO OVERALL GRADE		60
	Total	100

Course’s Contribution to Program

COURSE'S CONTRIBUTION TO PROGRAMME
No	Program Learning Outcomes	Contribution
No	Program Learning Outcomes	1	2	3	4	5
1	It uses the knowledge and skills it has absorbed in the fields of Economics, Finance, Statistics and Computer Science in interdisciplinary studies and produces different application areas.					X
2	With the awareness of lifelong learning and questioning, it follows national and international publications; It is expected to expand the limit of knowledge with scientific articles by reaching the level of preparing works in accordance with academic rules.			X
3	Designs, implements, solves and interprets analytical, modeling and empirical research; This way it makes predictions.				X
4	When she is involved in business life, she is expected to blend her knowledge in different fields with her differences and competencies and reflect them to her individual career.			X
5	Being aware of the ethical values, students know the individual, social and ecological dimensions of the concept of social responsibility and can prove that they understand the active citizenship duty that falls upon them within this framework.				X
6	Uses computer software and information and communication technologies required by related fields at an advanced level.			X

ECTS

ECTS ALLOCATED BASED ON STUDENT WORKLOAD BY THE COURSE DESCRIPTION

Activities	Quantity	Duration (Hour)	Total Workload (Hour)
Course Duration (Including the exam week: 15x Total course hours/week)	16	3	48
Hours for off-the-classroom study (Pre-study, practice, review/week)	16	5	80
Homework	7	10	70
Mid-term	1	20	20
Final	1	30	30
Total Work Load			248
Total Work Load / 25 (h)			9,92
ECTS Credit of the Course			10

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