Course Name : Financial Management (Corporate Finance)

Degree: Bachelor

Code

Year/Semester

Local Credits

ECTS Credits

Course Implementation, Hours/Week

Course

Tutorial

Laboratory

EF 313

3/1 (fall)

3

5

3

-

Department

Department of Economics and Finance

Department of International Management and Trade

Department of Maritime Business Management

Department of Management Information Systems

Instructors

Assoc. Prof. Dr. Engin Kurun

Contact Information

e-mail: ekurun@pirireis.edu.tr

Office Hours

Tuesday 14:00- 16:00

Web page

http://pruonline.pirireis.edu.tr/

Course Type

 Compulsory

Course Language

English

Course Prerequisites

  -

Course Category by Content, %

Basic Sciences

Engineering Science

Engineering Design

Humanities

100

-

-

-

Course Description

The course aims to make students understand the techniques used for the financial planning, control and performance components of a business. Thus, extensive information will be conveyed in areas such as financial decision-making processes covering investment management and capital budgeting, and the use of the financial tables, working capital, liquidity, inventory management accordingly. Furthermore, dividend policy, mergers & acquisitions and corporate restructuring issues will also be discussed.

Course Objectives

1. To provide students with knowledge and skills required for understanding financial management process and making financial decisions.
2. To prepare students towards financial and managerial problems in their programme regarding with financial management subject.

Course Learning Outcomes

By students who passed from EF 313 successfully

1. Define the major Roles of the Financial Manager.
2. Define Domestic and International Financial Market Place.
3. Perform Financial Forecasting and Planning.
4. Evaluate Financial Performance of the Business Firm.
5. Calculate the Time Value of Money.
6. Identify Short and Intermediate-Term Funding Alternatives.
7. Perform Capital Budgeting and Cash Flow Analysis.
8. Evaluate Capital Structure and Cost of Capital
9. Evaluate Fixed Income Securities.
10. Analyze corporate restructuring and reorganization.

Instructional Methods and Techniques

Teaching method involves interactive lectures and case studies, practical implementation of analytical tools (excel spreadsheet). Each participant should prepare research paper on selected subjects.

Tutorial Place

-

Co-term Condition

-

Textbook

Richard Brealey, Stewart Myers, Franklin Allen, Principles of Corporate Finance, 11th edition, 2014.

Richard Brealey, Stewart Myers, Alan Marcus, Fundamentals of Corporate Finance, 8th edition, 2014.

Other References

• Stephen Ross, Randolph W. Westerfield, Jeffrey Jaffe, Corporate Finance, 10th Edition, 2012.
• Eugene F. Brigham, Joel F. Houston, Fundamentals of Financial Management, 8th edition, 2014.

Homework & Projects

Students  will be required to solve problems presented in worksheet includes some problems, to aid their efforts to follow the development of the course content and to prepare for the examinations and to read some parts from the chapters of course book. And also, they will present a project about “valuation of industrial companies in Borsa Istanbul” until the end of the fall semester.

Laboratory Work

-

Computer Use

Students will prepare their projects based on an excel template.

Other Activities

-

Assessment Criteria

Activities

Quantity

Effects on Grading, %

Attendance

Midterm

1

30

Quiz

Homework

Term Paper/Project

1

20

Laboratory Work

Practices

Tutorial

Seminar

Presentation

Field Study

Final Exam

1

50

TOTAL

100

Effects of Midterm on Grading, %

50

Effects of Final on Grading, %

50

TOTAL

100

Week

Topics

Course Outcomes

1

Introduction to corporate finance

Financial markets

Review of financial statements

I, II

2

Financial analysis

Financial planning (Budgeting)

Working Capital management

I, II, III-IV

3

Time value of money

Valuing bonds

V, IX

4

Financial decision making process

Financing vs Investing

Cost of Capital

VI, VII, VIII

5

Risk & Return

Portfolio theory

Capital Asset Pricing Model (CAPM)

II, III, IV, V, VII

6

Efficient markets & behavioral finance

An overview of corporate financing

Sources of finance (Equity/Debt)

II, III, IV, V, VI, VII

7

Presentation of working groups

I, II, III, IV, V, VI, VII

8

MID-TERM Exam

I, II, III, IV, V, VI, VII

9

Payout policy

Capital structure

II, III, IV, V, VI, VII, VIII

10

Capital structure theory

Financing & Valuation

II, III, IV, V, VI, VII, VIII

11

Valuation of a company

I, II, III, IV, V, VI, VII, VIII, IX, X

12

Risk management

Derivatives

I, II, III, IV, V, VI, VII, VIII, IX, X

13

Merger & Acquisition

Corporate restructuring

Corporate governance

I, II, III, IV, V, VI, VII, VII, IX, X

14

Review before FINAL Exam

I, II, III, IV, V, VI, VII, VIII, IX, X