Fundamentals of Corporate Finance

Program Type:

Thesis

Non Thesis

Course Code:

FE 513

P:

3

Lab:

0

Credits:

3

ECTS:

10

Course Language:

English

Course Objectives:

This course considers business finance as an application of a simple and powerful set of ideas. The principle of the absence of arbitrage opportunities, or the Law of One Price, is at the heart of this course. This simple concept is a powerful and important tool in financial decision making. Based on this principle, the course aims to explain other principles used in financial decision making.

Course Content:

Investment budgeting methods, Investment cash flows, Stock and company valuation, Capital budgeting and risk, Relationship between risk and return, Capital pricing models, Capital structure of firms

Teaching Methods:

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

Assessment Methods:

A: Testing, B: Experiment, C: Homework, Q: Quiz

Vertical Tabs

Course Learning Outcomes

Learning Outcomes	Programme Learning Outcomes	Teaching Methods	Assessment Methods


Recognize and apply investment budgeting methods	1,2,3,5	1,2,3	A, C
Calculate expected cash flows from possible investments.	1,2,3,5	1,2,3	A, C
Understands the relationship between risk and gain.	1, 5	1,2,3	A, C
Understand the basic structure of capital pricing models.	1, 5	1,2,3	A, C
Knows the capital structure decisions of firms and how these decisions contribute to the value of the firm.	1, 2, 5	1,2,3	A, C
Knows how the dividend policy should be determined to maximize the value of the company.	1, 2, 5	1,2,3	A, C

Course Flow

COURSE CONTENT
Week	Topics	Study Materials
1	Review-Time value of money Textbook-Introduction	Chapter 1
2	Investment decision rules	Chapter 2
3	Investment decision rules	Chapter 3
4	Fundamentals of investment budgeting	Chapter 4
5	Fundamentals of investment budgeting	Chapter 5
6	Midterm Exam	Chapter 6
7	Stock and company valuation
8	Risk and gain in capital markets	Chapter 7
9	Risk and gain in capital markets	Chapter 8
10	Capital pricing models	Chapter 9
11	Cost of capital	Chapter 10
12	Midterm 2	Chapter 11
13	Capital structure	Chapter 12
14	Dividend policy
15	Final Exam	All Content

Recommended Sources

RECOMMENDED SOURCES
Textbook			Berk, DeMarzo, Harford (2020). Fundamentals of Corporate Finance, Global Edition, 4th Edition, Pearson
Additional Resources			Course Notes Course website, lecture notes, financial markets laboratory, financial calculator, online resources, excel type software.

Material Sharing

MATERIAL SHARING
Documents			Guidelines and additional examples for Lecture Topics and Homework Assignments
Assignments			Homework assignments
Exams			Midterm Exam and Final Exam

Assessment

ASSESSMENT
IN-TERM STUDIES	NUMBER	PERCENTAGE
Mid-Term	1	20
Class Performance	1	20
Final Exam	1	60
	Total	100
CONTRIBUTION OF FINAL EXAMINATION TO OVERALL GRADE		60
CONTRIBUTION OF IN-TERM STUDIES TO OVERALL GRADE		40
	Total	100

COURSE CATEGORY	Expertise/Field Courses

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	To comprehend the basic principles of finance and to be able to apply these principles in national and international areas.					X
2	To use modern information technologies and current financial tools effectively.				X
3	To comprehend the ethical rules and social responsibility understanding accepted by financial professional organizations and to apply them in the decisions to be taken.		X
4	To have the infrastructure that will enable them to do business in multicultural, multilingual and interdisciplinary environments.			X
5	To have information about the markets and the functioning of the markets and to analyze the developments in these markets.			X	X
6	To recognize the management tools and models specific to multinational companies and to be able to apply them where necessary.
7	To understand the structure of the global economic system and to analyze how new developments will affect this structure.		X
8	To be able to use the ability of critical thinking in the decision making process.		X
9	To transfer the acquired leadership, teamwork and communication skills to the lifelong learning process.
10	To be able to manage the process with analytical and creative approaches by anticipating the opportunities and problems that dynamic working conditions may create.

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	4	96
Homework	5+1(Proje)	60	60
Mid-term	1	10	20
Final	1	15	30
Total Work Load			254
Total Work Load / 25 (h)			10.16
ECTS Credit of the Course			10

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