At the end of this course, the students; 1) Estimate the cost of capital for the whole firm, individual divisions as well as the specific projects with advanced techniques 2) Solve capital budgeting problems by risk-adjusted discount rate approach and certainty equivalent approach 3) Explain and evaluate the Modigliani and Miller (MM) capital structure model (with and without taxes) and the Miller model 4) Describe the impact of financial distress, agency costs and asymmetric information on capital structure 5) Explain dividend theories such as the residual theory of dividends and the Miller and Modigliani's irrelevance argument 6) Identify other factors that influence dividend policy 7) Apply the principles of working capital management
MODE OF DELIVERY
Face to face
PRE-REQUISITES OF THE COURSE
No
RECOMMENDED OPTIONAL PROGRAMME COMPONENT
No
COURSE DEFINITION
COURSE CONTENTS
WEEK
TOPICS
1st Week
The Firm and the Financial Manager, Accounting and Finance
2nd Week
Time Value of Money
3rd Week
Valuing Bonds
4th Week
Valuing Stocks
5th Week
Net Present Value and Other Investment Criteria
6th Week
Discounted Cash Flow Analysis
7th Week
Project Analysis
8th Week
Intro. to Risk, Return, and the Opp. Cost of Capital
9th Week
Risk, Return and Capital Budgeting
10th Week
The Cost of Capital
11th Week
The Capital Structure Decision
12th Week
Dividend Policy
13th Week
İstanbul Stock Exchange
14th Week
Financial Instruments in Turkey
RECOMENDED OR REQUIRED READING
PLANNED LEARNING ACTIVITIES AND TEACHING METHODS
Lecture,Discussion
ASSESSMENT METHODS AND CRITERIA
Quantity
Percentage(%)
Mid-term
1
30
Assignment
1
20
Total(%)
50
Contribution of In-term Studies to Overall Grade(%)
50
Contribution of Final Examination to Overall Grade(%)
50
Total(%)
100
ECTS WORKLOAD
Activities
Number
Hours
Workload
Midterm exam
1
1
1
Preparation for Quiz
4
5
20
Individual or group work
14
4
56
Preparation for Final exam
1
25
25
Course hours
14
2
28
Preparation for Midterm exam
1
20
20
Laboratory (including preparation)
Final exam
1
1
1
Homework
Total Workload
151
Total Workload / 30
5,03
ECTS Credits of the Course
5
LANGUAGE OF INSTRUCTION
Turkish
WORK PLACEMENT(S)
No
KEY LEARNING OUTCOMES (KLO) / MATRIX OF LEARNING OUTCOMES (LO)