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Course Code: 
AFN 311
Course Period: 
Spring
Course Type: 
Core
P: 
3
Application: 
0
Credits: 
3
ECTS: 
6
Prerequisite Courses: 
Course Language: 
İngilizce
Course Objectives: 
The major objective of this course is to develop an understanding and appreciation of Finance theories as they apply to corporate financial decisions and to understand the implications for problem solving. The focus is on how financial management can create value for the firm.

 

Course Content: 

Capital budgeting methods, Investment cash flows, Stock and firm valuation, Capital budgeting and risk, The relationship between risk and return, Capital asset pricing models, Capital structure, Dividend policy

 
Course Methodology: 
1: Lecture, 2: Question-Answer, 3: Discussion; 4: Simulation; 5: Case Study
Course Evaluation Methods: 
A: Testing, B: Presentation, C: Homework, D:Project, E:Laboratory

Vertical Tabs

Course Learning Outcomes

Learning Outcomes

 

Program Learning Outcomes

Teaching Methods

Assessment Methods

To identify investment decision rules and to be able to apply them

 

 

1, 2, 6, 8, 10

1,2,3

A,C,E

To calculate the projected cash flows of possible investments

 

 

1, 2

 

1,2,3

 

A,C

To understand the relationship between risk and return 

 

 

1, 5, 7, 8

 

1,2,3

 

A,C

To understand the basic structure of capital asset pricing models

 

 

1, 5

 

1,2,3

 

A,C,E

To understand how capital structure decision are made and how they affect the value of the firm.

 

 

1, 5, 8, 10

 

1,2,3

 

A,C

To be able to examine and discuss the key issues related to dividend policy and their implications for the value of the firm

 

 

1, 5, 8

 

1,2,3

 

A,C

 

 

 

 
 

Course Flow

COURSE CONTENT

 

Week

Topics

Study Materials

 

1

Review – Time value of money

Textbook-Introduction

2

Investment decision rules

Textbook Ch. 8

3

Investment decision rules

Textbook Ch. 8

4

Fundamentals of capital budgeting

Textbook Ch. 9

5

Fundamentals of capital budgeting

Textbook Ch. 9

6

Midterm 1

 

7

Stock and firm valuation

Textbook Ch. 10

8

Risk and return in capital markets

Textbook Ch. 11

9

Risk and return in capital markets

Textbook Ch. 11

10

Capital asset pricing models

Textbook Ch. 12

11

The cost of capital

Textbook Ch. 13

12

Midterm 2

 

13

Capital structure

Textbook Ch. 16

14

Dividend policy

Textbook Ch. 17

15

Final Exam

 

 
 

Recommended Sources

RECOMMENDED SOURCES

Textbook

Berk, DeMarzo, Harford (2020). Fundamentals of Corporate Finance, Global Edition, 4th Edition, Pearson

Additional Resources

Course Moodle page, online resources, articles, lecture notes.

 
 

Material Sharing

MATERIAL SHARING

Documents

PowerPoint presentations used in class, Excel-based examples

Assignments

Homework assignments, Excel applications

 

Exams

Midterm Exams and Final Exam

 
 

Assessment

ASSESSMENT

IN-TERM STUDIES

NUMBER

PERCENTAGE

Mid-terms

2

75

Assignments

6

25

Total

 

100

CONTRIBUTION OF FINAL EXAMINATION TO OVERALL GRADE

 

30

CONTRIBUTION OF IN-TERM STUDIES TO OVERALL GRADE

 

70

Total

 

100

 
 

Course’s Contribution to Program

No

Program Learning Outcomes

Contribution

1

2

3

4

5

1

Students should demonstrate their knowledge of the essential body of knowledge in business management (functions of management: organization theory: policy and strategy: information, technology and operations management; human capital management; accounting; finance; marketing; economics; and an integrated perspective).

 

 

X

 

 

2

Students should demonstrate their ability to construct strategy, make organizational decisions and define the required processes to execute these decisions by utilizing the concept and knowledge in business management and by considering cultural and ethical values.

 

 

X

 

 

3

Students should demonstrate the ability to understand the dynamics of global business environment; follow the changes and improvements and understanding the importance of flexibility and creativity in the changing global business world

 

 

X

 

 

4

Students should demonstrate their comprehension of basic economics, law and social sciences which shape the global business environment and their ability to make decisions via these knowledge.

 

 

 

X

 

5

Students should demonstrate their ability to communicate effectively and work in harmony with members from different disciplines.

X

 

 

 

 

6

Students should be able to effectively communicate in writing or orally in global business environment.

 

 

 

X

 

7

Students should be able to appreciate and recognize contributions of individuals from diverse cultures, and should be able to effectively communicate, positively contribute and work as a team member.

 

X

 

 

 

8

Students should be able to use common information and communication technologies employed in business management.

 

X

 

 

 

9

Students should be able to define problems related with business processes, gather data, choose the required methods to analyze the data, evaluate the results and identify the necessary practices and communicate their ideas effectively.

 

 

 

 

X

10

Students should be able to demonstrate their ability to make contributions in business team or project groups, take responsibility and take the leadership role.

 

X

 

 

 

11

Students should demonstrate their understanding of business ethics and social responsibility concepts and motivation to take active role in these subjects.

 

 

 

 

X

12

Students should have required English proficiency to follow the current events and improvements in their professional area and to communicate their ideas in international business arena.

 

 

X

 

 

13

Students should understand the importance of lifelong learning to maintain personal and professional development.

 

 

X

 

 

14

Students should demonstrate that they have the discipline and responsibility to conduct and independent study, project, research.

 

 

 

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)

15

4

60

Hours for off-the-classroom study (Pre-study, practice)

15

2

30

Mid-terms

2

12

24

Homework

6

4

24

Final examination

1

20

20

Total Work Load

 

 

158

Total Work Load / 25 (h)

 

 

6,32

ECTS Credit of the Course

 

 

6

 
 
3