11111

COURSE INTRODUCTION AND APPLICATION INFORMATION


finans.ss.ieu.edu.tr

Course Name
Code
Semester
Theory
(hour/week)
Application/Lab
(hour/week)
Local Credits
ECTS
Fall
Prerequisites
None
Course Language
Course Type
Required
Course Level
-
Mode of Delivery -
Teaching Methods and Techniques of the Course
Course Coordinator
Course Lecturer(s)
Assistant(s) -
Course Objectives
Learning Outcomes The students who succeeded in this course;
  • will be able to ascertain that Net Present Value method measures the wealth independent of whether the capital structure of the firm is levered or not.
  • will be able to interpret Modigliani Miller Propositions by examples.
  • will be able to employ levered firm's Adjusted Present Value Approach, Flow to Equity Approach and Weighted Average Cost of Capital Method by evaluating them.
  • will be able to express how to manage Initial Public Offerings, offering price of IPO’s and its costs
  • will be able to become skillful in evaluating decisions of mergers and acquisitions and their impact on accounting, calculating their synergy and estimating the net present value of mergers
  • will be able to ascertain all the above skills by case discussions.
  • will be able to estimate cost of capital and beta coefficient by relating them.
Course Description

 



Course Category

Core Courses
X
Major Area Courses
Supportive Courses
Media and Managment Skills Courses
Transferable Skill Courses

 

WEEKLY SUBJECTS AND RELATED PREPARATION STUDIES

Week Subjects Required Materials
1 Introduction to Advanced Corporate Finance
2 Risk, Cost of Capital and Capital Budgeting Corporate Finance, Stephen A. Ross, Radolph W. Westerfield,Jeffrey F. Jaffe,9th ed.,McGrawHill Irwin, 2010,,Ch.12
3 Case 1: Marriott Corp. Marriott Corporation: The Cost of Capital (Abridged), HBS 9289047
4 Capital Structure: Basic Concepts Corporate Finance, Stephen A. Ross, Radolph W. Westerfield,Jeffrey F. Jaffe,9th ed.,McGrawHill Irwin, 2010,Ch.15
5 Case 2: American Home Products Corporation American Home Products Corporation HBS 9283065
6 Capital Structure:Limits to the Use of Debt Corporate Finance, Stephen A. Ross, Radolph W. Westerfield,Jeffrey F. Jaffe,6th ed.,McGrawHill Irwin, 2010,Ch.16
7 Case 3: Masey Ferguson, 1980 Masey Ferguson, 1980 HBS 9282043
8 Case 4: Goodyear Restructiring HBS 9288046 Goodyear Tire and Rubber Company 1988 HBS 929001
9 Valuation and Capital Budgeting for the Levered Firm Corporate Finance, Stephen A. Ross, Radolph W. Westerfield,Jeffrey F. Jaffe,9th ed.,McGrawHill Irwin, 2010,Ch.17
10 Case5: Eskimo Pie Corporation Eskimo Pie Corporation HBS 9293094
11 Midterm Exam
12 Issuing Securities to Public Corporate Finance, Stephen A. Ross, Radolph W. Westerfield,Jeffrey F. Jaffe,9th ed.,McGrawHill Irwin, 2010,Ch.19
13 Case6: Netscape’s Initial Public Offering Netscape’s Initial Public Offering HBS 9296088
14 Mergers and Acquisitions Corporate Finance, Stephen A. Ross, Radolph W. Westerfield,Jeffrey F. Jaffe,9th ed.,McGrawHill Irwin, 2010,Ch.30
15 Case7:Phillip Morris and Craft Phillip Morris and Craft HBS9289045
16 Review of the Semester  
Course Notes/Textbooks Capital Budgeting and Longterm Financing Decisions, Neil Seitz and Mitch Ellison, 4.th ed.,South Western Publishing (Thompson), 2005.
Corporate Finance, Stephen A. Ross, Radolph W. Westerfield,Jeffrey F. Jaffe,9th ed.,McGrawHill Irwin, 2010.
Suggested Readings/Materials Harvard Business School Cases

It is necessary to read the cases before the class, answering the questions pertaining to the cases and handing it in writing in the beginning of the class and participating in the class discussions of the cases.

 

EVALUATION SYSTEM

Semester Activities Number Weigthing
Participation
16
10
Laboratory / Application
Field Work
Quizzes / Studio Critiques
Portfolio
Homework / Assignments
Presentation / Jury
Project
1
30
Seminar / Workshop
Oral Exam
Midterm
1
30
Final Exam
1
30
Total

Weighting of Semester Activities on the Final Grade
70
Weighting of End-of-Semester Activities on the Final Grade
30
Total

ECTS / WORKLOAD TABLE

Semester Activities Number Duration (Hours) Workload
Course Hours
(Including exam week: 16 x total hours)
16
3
48
Laboratory / Application Hours
(Including exam week: 16 x total hours)
16
Study Hours Out of Class
16
3
Field Work
Quizzes / Studio Critiques
Portfolio
Homework / Assignments
8
Presentation / Jury
7
4
Project
1
Seminar / Workshop
Oral Exam
Midterms
1
20
Final Exams
1
25
    Total
169

 

COURSE LEARNING OUTCOMES AND PROGRAM QUALIFICATIONS RELATIONSHIP

#
Program Competencies/Outcomes
* Contribution Level
1
2
3
4
5
1 Developing scientific expertise and capabilities in the field of finance through using creative and critical thinking and research skills; innovatively contribute to the discipline by new ideas and definitions based on the graduate level qualifications. X
2 Comprehending the interaction across various disciplines related to the field of finance, reaching at original conclusions by using new and complex analysis, synthesis and evaluation skills. X
3

Developing and championing new approaches to contribute the field of finance through apprehending the research methods.

X
4

Contributing to the science of finance through developing new methods or implementing an existing method to a different field through investigating, comprehending, designing original topics.

X
5

Conducting independent research, analyzing scientific phenomenon through broad, deep and critical perspective, arriving at new syntheses and evaluations in the discipline of finance.

X
6 Publishing scientific articles in reputable refereed national and international journals, presenting papers in scientific conferences in the field of finance and its sub-disciplines. X
7 Following, attending and organizing national and international events such as conferences, seminars and panels to keep up with developments and create new solutions to the problems in the field of finance. X
8 Following pioneering and innovative theories and methods in the field of finance and implementing them in analysis and research. X
9 Developing creative solutions to the social, scientific and ethical issues within the scope of finance and business life and extending values that supports these solutions. X
10

Being able to use English fluently for both comprehending and publishing scientific publications and developing proper communication.

*1 Lowest, 2 Low, 3 Average, 4 High, 5 Highest

 

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