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. |
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 |
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Course Learning Outcomes
Learning Outcomes |
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Program Learning Outcomes |
Teaching Methods |
Assessment Methods |
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To identify investment decision rules and to be able to apply them |
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1, 2, 6, 8, 10 |
1,2,3 |
A,C,E |
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To calculate the projected cash flows of possible investments |
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1, 2 |
1,2,3 |
A,C |
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To understand the relationship between risk and return |
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1, 5, 7, 8 |
1,2,3 |
A,C |
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To understand the basic structure of capital asset pricing models |
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1, 5 |
1,2,3 |
A,C,E |
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To understand how capital structure decision are made and how they affect the value of the firm. |
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1, 5, 8, 10 |
1,2,3 |
A,C |
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To be able to examine and discuss the key issues related to dividend policy and their implications for the value of the firm |
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1, 5, 8 |
1,2,3 |
A,C |
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Course Flow
COURSE CONTENT |
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Week |
Topics |
Study Materials |
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1 |
Review – Time value of money |
Textbook-Introduction |
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2 |
Investment decision rules |
Textbook Ch. 8 |
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3 |
Investment decision rules |
Textbook Ch. 8 |
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4 |
Fundamentals of capital budgeting |
Textbook Ch. 9 |
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5 |
Fundamentals of capital budgeting |
Textbook Ch. 9 |
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6 |
Midterm 1 |
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7 |
Stock and firm valuation |
Textbook Ch. 10 |
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8 |
Risk and return in capital markets |
Textbook Ch. 11 |
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9 |
Risk and return in capital markets |
Textbook Ch. 11 |
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10 |
Capital asset pricing models |
Textbook Ch. 12 |
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11 |
The cost of capital |
Textbook Ch. 13 |
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12 |
Midterm 2 |
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13 |
Capital structure |
Textbook Ch. 16 |
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14 |
Dividend policy |
Textbook Ch. 17 |
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15 |
Final Exam |
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Recommended Sources
RECOMMENDED SOURCES |
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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 |
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Documents |
PowerPoint presentations used in class, Excel-based examples |
Assignments |
Homework assignments, Excel applications
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Exams |
Midterm Exams and Final Exam |
Assessment
ASSESSMENT |
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IN-TERM STUDIES |
NUMBER |
PERCENTAGE |
Mid-terms |
2 |
75 |
Assignments |
6 |
25 |
Total |
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100 |
CONTRIBUTION OF FINAL EXAMINATION TO OVERALL GRADE |
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30 |
CONTRIBUTION OF IN-TERM STUDIES TO OVERALL GRADE |
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70 |
Total |
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100 |
Course’s Contribution to Program
No |
Program Learning Outcomes |
Contribution |
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1 |
2 |
3 |
4 |
5 |
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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). |
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X |
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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. |
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X |
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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 |
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X |
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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. |
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X |
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5 |
Students should demonstrate their ability to communicate effectively and work in harmony with members from different disciplines. |
X |
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6 |
Students should be able to effectively communicate in writing or orally in global business environment. |
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X |
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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. |
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X |
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8 |
Students should be able to use common information and communication technologies employed in business management. |
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X |
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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. |
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X |
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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. |
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X |
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11 |
Students should demonstrate their understanding of business ethics and social responsibility concepts and motivation to take active role in these subjects. |
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X |
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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. |
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X |
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13 |
Students should understand the importance of lifelong learning to maintain personal and professional development. |
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X |
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14 |
Students should demonstrate that they have the discipline and responsibility to conduct and independent study, project, research. |
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X |
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ECTS
ECTS ALLOCATED BASED ON STUDENT WORKLOAD BY THE COURSE DESCRIPTION |
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Activities |
Quantity |
Duration |
Total |
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 |
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158 |
Total Work Load / 25 (h) |
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6,32 |
ECTS Credit of the Course |
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6 |