Principles of Finance

Course Code:

AFN 214

Course Period:

Autumn

Course Type:

Core

P:

3

Application:

0

Credits:

3

ECTS:

6

Prerequisite Courses:

Principles of Financial Accounting

Course Language:

İngilizce

Course Objectives:

This course is designed to introduce students the fundamental concepts, methods and technical tools necessary to make efficient and successful financial decisions in institutions.

Course Content:

Topics discussed include Financial Management Overview; Financial Statements and Cash Flow; Analysis of Financial Statements and Financial Planning; Time Value of Money and Discounted Cash Flow Valuation; Markets; Valuation of Securities; Interest Rates and Risk Factors relevant for Interest Rates; Efficient Markets.

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	Programme Learning Outcomes	Teaching Methods	Assessment Methods


1) A clear understanding of the core financial concepts and methods used for financing or investment decision making in corporations	1,2,3,5	1,2,3	A, C
2) Ability to apply the fundamental concepts and technical tools learned in class to real life corporate finance decisions.	1,2,3,5,8	1,2,3	A, C, D
3) Understanding of financial planning process and determination of funds needed for growth.	1, 5	1,2,3	A, C
4) Ability to solve real-life time value of money problems.	1,2,5,8	1,2,3	A, C, E
5) Ability to value financial assets.	1,2,5	1,2,3	A, C, E

Course Flow

COURSE FLOW
Week	Topics	Study Materials
1	Financial Management Overview	Textbook Chapter 1
2	Financial Statement and Cash Flows from Assets	Textbook Chapter 2
3	Analysis of Financial Statements	Textbook Chapter 2
4	Financial Planning	Textbook Chapter 2
5	Financial Planning	Lecture Notes
6	Time Value of Money	Textbook Chapter 3
7	Discounted Cash Flow Valuations	Textbook Chapter 4
8	Discounted Cash Flow Valuations	Textbook Chapter 4
9	Midterm Exam	Textbook Chapters 1 – 4
10	Interest Rates and Bond Valuation	Textbook Chapters 5 – 6
11	Interest Rates and Bond Valuation	Textbook Chapters 5 – 6
12	Equity Markets and Stock Valuation	Textbook Chapter 7
13	Equity Markets and Stock Valuation	Textbook Chapter 7
14	End of the Semester Activities	Project/HW Guide
15	Final Exam	Textbook Chapter 1

Recommended Sources

RECOMMENDED SOURCES
Textbook	Berk, DeMarzo, Harford (2020). Fundamentals of Corporate Finance, Global Edition, 4th Edition, Pearson
Additional Resources	Course website, lecture notes, Finance Lab, financial calculator, online resources, spreadsheet software.

Material Sharing

MATERIAL SHARING
Documents	Guidelines and additional examples for Lecture Topics and Homework Assignments
Assignments	Homework Assignments
Exams	Midterm Exam and Final Exam

Assessment

ASSESSMENT
IN-TERM STUDIES	NUMBER	PERCENTAGE
Mid-Term	1	30
Class Performance	1	30
Final Exam	1	40
	Total	100
CONTRIBUTION OF FINAL EXAMINATION TO OVERALL GRADE		40
CONTRIBUTION OF IN-TERM STUDIES TO OVERALL GRADE		60
	Total	100

Course’s Contribution to Program

COURSE CATEGORY

Expertise/Field Courses

COURSE'S CONTRIBUTION TO PROGRAM

Program Learning Outcomes

Contribution

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.

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.

ECTS

ECTS ALLOCATED BASED ON STUDENT WORKLOAD BY THE COURSE DESCRIPTION

Activities Quantity Duration	Activities Quantity Duration	Activities Quantity Duration	Activities Quantity Duration
Course Duration (Including the exam week: 15x Total course hours)	15	3	45
Hours for off-the-classroom study (Pre-study, practice)	15	4	60
Midterm Exam	1	10	10
Homework	5+1(Project)	(5+10)	15
Final examination	1	15	15
Total Work Load			145
Total Work Load / 25 (h)			5.8
ECTS Credit of the Course			6

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