Dokuz Eylül University Information Package / Courses Catalog

Description of Individual Course Units

Course Unit Code	Course Unit Title	Type Of Course	D	U	L	ECTS
FIN 3001	MANAGERIAL FINANCE	ELECTIVE	3	0	0	5

Offered By

BUSINESS ADMINISTRATION (English)

Level of Course Unit

First Cycle Programmes (Bachelor's Degree)

Course Coordinator

PROFESSOR DOCTOR PINAR EVRIM MANDACI

Offered to

International Trade and Business (English)
Economics (English)
International Business and Trade (English)
BUSINESS ADMINISTRATION (English)

Course Objective

The objective of this course is to help the students apply the basic valuation models in order to find the value of stocks and bonds; understand the relationship between risk and return; comprehend the long-term investment decisions; highlight the cost of capital and capital structure issues.

Learning Outcomes of the Course Unit

1	Discuss the rights and features of common stock and bond in order to differentiate between debt and equity capital.
2	Apply the basic valuation models in order to find the value of stocks and bonds
3	Calculate risk and return for a security and a portfolio through risk and return concepts.
4	Determine the cost of equity and debt to calculate the weighted average cost of capital.
5	Determine initial investment, the relevant operating cash flows, and terminal cash flows for a proposed project.
6	Identify the optimal capital structure through financial leverage, break-even analysis, and capital structure concepts and theories.

Mode of Delivery

Face -to- Face

Prerequisites and Co-requisites

FIN 2002 - BUSINESS FINANCE

Recomended Optional Programme Components

None

Course Contents

Week	Subject	Description
1	Interest Rates and Bond Valuation	Ch. 6
2	Stock Valuation	Ch. 7
3	Stock Valuation	Ch. 7
4	Risk and Return	Ch. 8
5	Risk and Return	Ch. 8
6	Cost of Capital	Ch. 9
7	Capital Budgeting: Estimating Cash Flows	Ch. 11
8	Capital Budgeting: Estimating Cash Flows	Ch. 11
9	Risk in Capital Budgeting	Ch. 12
10	Risk in Capital Budgeting	Ch. 12
11	Capital Structure and Leverage	Ch. 13
12	Capital Structure and Leverage	Ch. 13
13	Dividend Policy	Ch. 14
14	Mergers & Acquisitions, Corporate Restructuring, Bankruptcies	Ch. 18

Recomended or Required Reading

Principles of Managerial Finance, Zutter & Smart, 16.Ed.

Planned Learning Activities and Teaching Methods

1. Lectures
2. Solving the assigned cases and problems

Assessment Methods

SORTING NUMBER	SHORT CODE	LONG CODE	FORMULA
1	MT	Midterm
2	QZ	Quiz
3	FN	Final
4	BNS	BNS	MT * 0.40 + QZ * 0.20 + FN * 0.40
5	BUT	Bütünleme Notu
6	BBN	Bütünleme Sonu Başarı Notu	MT * 0.40 + QZ * 0.20 + BUT * 0.40

Further Notes About Assessment Methods

The assignmnet grade is made of 2 quizes (20%) equally weighted and all weekly assignments (10%) throughout the semester.

Assessment Criteria

1. The learner will calculate risk and return of securities and portfolios.
2. The learner will apply capital budgeting techniques to evaluate capital investment decisions of firms.
3. The learner will calculate the cost of debt, cost of equity and weighted average cost of capital.
4. The learner will evaluate the optimal capital structure of a corporation.
5. The learner will clearly differentiate between the basic types of dividend policies.
6. The learner will describe the underlying causes of business failures.

Language of Instruction

English

Course Policies and Rules

1. Attending at least 70 percent of the lectures is mandatory.
2. Violations of plagiarism of any kind will result in a disciplinary action.

Contact Details for the Lecturer(s)

E-mail: habil.gokmen@deu.edu.tr - pinar.evrim@deu.edu.tr - efe.cagli@deu.edu.tr

Office Hours

by appointment

Work Placement(s)