This course develops an understanding of the theoretical and practical issues relating to financial management. The main objectives of the course are : to introduce the students to the financial markets and the financial instruments traded in these markets, to expose the students to the quantitative toos and methods of modern finance, and to help students gain competence in using these tools to make sound financial decisions. Topics covered in the course include: the link between accounting and finance, an introduction to financial statement analysis, the time value of money, bond and stock valuation, investment decision criteria and capital budgeting, project analysis, risk-return relationship, cost of capital, and an overview of corporate financing and capital structure.
Financial Management (FIN 301)
| Programs\Type | Required | Core Elective | Area Elective |
| Data Science and Analytics | * | ||
| Entrepreneurship Minor | * | ||
| Finance Minor | * | ||
| Management | * | ||
| Management | * |
CONTENT
OBJECTIVE
This course develops an understanding of the theoretical and practical issues relating to financial management. The main objectives of the course are to introduce the students to the financial markets and financial instruments, to expose the students to the quantitative tools and methods of modern finance, and to help students gain competence in using these tools to make sound financial decisions. Topics covered in the course include: the link between accounting and finance, the time value of money, bond and stock valuation, investment decision criteria and capital budgeting, project analysis, risk-return relationship, cost of capital, and an overview of corporate financing and capital structure.
LEARNING OUTCOMES
- Upon successful completion of this course, students should be able to: 1. Comprehend the theoretical and practical issues of corporate finance (i.e. how managers use financial theory to solve practical problems). 2. Describe why companies and financial markets behave the way they do (i.e. ask the right questions to analyze new problems in times of change). 3. Identify the fundamental concepts of valuation, risk / return, capital budgeting, investment and financing decisions, and risk management (i.e. concepts and information on which good financial decisions are based). 4. Employ various concepts and techniques from topics such as financial statement analysis, time value of cash flows, valuation of risk-less & risky assets, corporate investment & financial planning, risk-return relationship, capital structure decision, diversification of risk , options & futures, etc.
PROGRAMME OUTCOMES
1. Understand the world, their country, their society, as well as themselves and have awareness of ethical problems, social rights, values and responsibility to the self and to others. 3
2. Understand different disciplines from natural and social sciences to mathematics and art, and develop interdisciplinary approaches in thinking and practice. 3
3. Think critically, follow innovations and developments in science and technology, demonstrate personal and organizational entrepreneurship and engage in life-long learning in various subjects; have the ability to continue to educate him/herself. 4
4. Communicate effectively in Turkish and English by oral, written, graphical and technological means. 4
5. Take individual and team responsibility, function effectively and respectively as an individual and a member or a leader of a team; and have the skills to work effectively in multi-disciplinary teams. 4
1. Possess sufficient knowledge of mathematics, science and program-specific engineering topics; use theoretical and applied knowledge of these areas in complex engineering problems.
2. Identify, define, formulate and solve complex engineering problems; choose and apply suitable analysis and modeling methods for this purpose.
3. Develop, choose and use modern techniques and tools that are needed for analysis and solution of complex problems faced in engineering applications; possess knowledge of standards used in engineering applications; use information technologies effectively.
4. Have the ability to design a complex system, process, instrument or a product under realistic constraints and conditions, with the goal of fulfilling specified needs; apply modern design techniques for this purpose.
5. Design and conduct experiments, collect data, analyze and interpret the results to investigate complex engineering problems or program-specific research areas.
6. Possess knowledge of business practices such as project management, risk management and change management; awareness on innovation; knowledge of sustainable development.
7. Possess knowledge of impact of engineering solutions in a global, economic, environmental, health and societal context; knowledge of contemporary issues; awareness on legal outcomes of engineering solutions; knowledge of behavior according to ethical principles, understanding of professional and ethical responsibility.
8. Have the ability to write effective reports and comprehend written reports, prepare design and production reports, make effective presentations, and give and receive clear and intelligible instructions.
1. Have an understanding of economics and main functional areas of management 4
2. Have a basic all-around knowledge in humanities, science, mathematics, and literature 3
3. Have a basic knowledge of law and ethics, awareness of social and ethical responsibilities 3
4. Work effectively in teams and environments characterized by people of diverse educational, social and cultural backgrounds 2
5. Demonstrate proficiency in oral and written communications in English 4
6. Pursue open minded inquiry and appreciate the importance of research as an input into management practice; thus, a.know how to access, interpret and analyze data and information by using current technologies b.use the results from analyses to make informed decisions 3
7. Use office softwares for written communication, presentation, and data analysis 4
8. Demonstrate awareness that business settings present different opportunities and challenges for managers due to environmental/contextual differences that arise in economic, political, cultural, legal-regulatory domains 3
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ASSESSMENT METHODS and CRITERIA
| Percentage (%) | |
| Final | 40 |
| Midterm | 40 |
| Assignment | 20 |
RECOMENDED or REQUIRED READINGS
| Textbook |
Fundamentals of Corporate Finance, by Richard A. Brealey, Stewart C. Myers and Alan J. Marcus, (McGraw-Hill Irwin) |