Corporate Finance

Course Code:

AFN 311

Course Period:

Spring

Course Type:

Core

P:

3

Application:

0

Credits:

3

ECTS:

6

Prerequisite Courses:

Principles of Finance

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
1. To identify investment decision rules and to be able to apply them	1, 2, 6, 8, 10	1,2,3	A,C,E
2. To calculate the projected cash flows of possible investments	1, 2	1,2,3	A,C
3. To understand the relationship between risk and return	1, 5, 7, 8	1,2,3	A,C
4. To understand the basic structure of capital asset pricing models	1, 5	1,2,3	A,C,E
5. 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
6. 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

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

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

Documents	PowerPoint presentations used in class, Excel-based examples
Assignments	Homework assignments, Excel applications
Exams	Midterm Exam and Final Exam

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 CATEGORY

Expertise/Field Courses

Course’s Contribution to Program

COURSE'S CONTRIBUTION TO PROGRAM
	Program Learning Outcomes	Contribution
	Program Learning Outcomes	1	2	3	4	5
	1. To understand the core principles of finance and to be able to apply them both nationally and internationally.					X
	2. To formulate solutions to finance problems by effectively using contemporary information technologies and up-to-date financial instruments.				X
	3. To judge the best possible outcome to problems that require ethical and social responsibility-based thinking by identifying stakeholders and weighing alternative solutions.		X
	4. To develop the necessary background to be able to work in multicultural and multilingual environments.			X
	5. To analyze the developments in financial markets by interpreting and distinguishing among the factors affecting them.				X
	6. To recognize 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 be able to analyze how new developments will affect this structure.
	8. To be able to use critical thinking ability in decision making process.				X
	9. To develop and demonstrate the leadership, teamwork and communication skills that may be transferred to the lifelong learning process.
	10. To interpret environmental and sustainability issues by implementing quality management processes.				X

ECTS

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

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