COURSE INTRODUCTION AND APPLICATION INFORMATION


Course Name
Corporate Finance Theory
Code
Semester
Theory
(hour/week)
Application/Lab
(hour/week)
Local Credits
ECTS
FIN 601
Fall
3
0
3
10
Prerequisites
None
Course Language
English
Course Type
Required
Course Level
Third Cycle
Course Coordinator
Course Lecturer(s)
Assistant(s) -
Course Objectives This course aims to investigate the fundamental theories that have separated finance from economics to develop as a independent field of research. For this purpose, in the first part of the course, fundamentals of microeconomics will be discussed followed by discussion of concepts and models that facilitate decision making under uncertainty.
Learning Outcomes The students who succeeded in this course;
  • will be able to explain how prominent models in finance has been developed and how they can be applied by means of analytical methods.
  • will be able to explain how finance has emerged from economics by linking theories in both fields.
  • will be able to have a solid theoretical background.
  • will be able to reveal how the optimal decision making process under risk environment develops which is one of the primary topics in finance.
  • will be able to envisage the concepts of asset pricing and valuation in the context of modern financial theory.
  • will be able to indicate how the economic decisions of consumption, saving and investment by individuals is reflected in.
  • will be able to indicate how the economic decisions of consumption, saving and investment by individuals is reflected in financial markets
  • will be able to indicate how the economic decisions of consumption, saving and investment by individuals is reflected in financial markets.
Course Content This course investigates the primary concepts and theories in economics and finance and reveals the concepts and models that affect decision making process under uncertainty which are widely used in academic research as well as in private institutions outside the university.

 



Course Category

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

 

WEEKLY SUBJECTS AND RELATED PREPARATION STUDIES

Week Subjects Related Preparation
1 Introduction
2 Deterministic Models: Wealth Accumulation Models for Individuals Fama and Miller, “The Theory of Finance”, Holt, Rinehart and Winston
3 Deterministic Models: Wealth Accumulation Models for Individuals Fama and Miller, “The Theory of Finance”, Holt, Rinehart and Winston
4 Deterministic Models: Commodity, Production and Valuation Models Fama and Miller, “The Theory of Finance”, Holt, Rinehart and Winston
5 Deterministic Models: Commodity, Production and Valuation Models Fama and Miller, “The Theory of Finance”, Holt, Rinehart and Winston
6 Deterministic Models: Optimum Investment Decisions Fama and Miller, “The Theory of Finance”, Holt, Rinehart and Winston
7 Deterministic Models: Optimum Investment Decisions Fama and Miller, “The Theory of Finance”, Holt, Rinehart and Winston
8 Midterm
9 Uncertainty Models: Financing, Investment Decisions and Cost of Capital Fama and Miller, “The Theory of Finance”, Holt, Rinehart and Winston
10 Uncertainty Models: Financing, Investment Decisions and Cost of Capital Fama and Miller, “The Theory of Finance”, Holt, Rinehart and Winston
11 Uncertainty Models: Expected Utility Approach in Decision Making Process under Uncertainty Fama and Miller, “The Theory of Finance”, Holt, Rinehart and Winston
12 Uncertainty Models: Two period Consumption and Investment Decisions Fama and Miller, “The Theory of Finance”, Holt, Rinehart and Winston
13 Uncertainty Models: Risk, Retrun and Market Equilibrium Fama and Miller, “The Theory of Finance”, Holt, Rinehart and Winston
14 Research Proposal Submission
15 Review of the Semester
16 Review of the Semester
Course Textbooks Book chapters indicated above
References Microeconomics textbooks

 

EVALUATION SYSTEM

Semester Requirements Number Percentage
Participation
16
10
Laboratory / Application
Field Work
Quizzes / Studio Critiques
Homework / Assignments
Presentation / Jury
1
20
Project
1
20
Seminar / Workshop
1
20
Midterms / Oral Exams
1
30
Final / Oral Exam
Total

Contribution of Semester Work to Final Grade
Contribution of Final Work to Final Grade
Total

ECTS / WORKLOAD TABLE

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
Homework / Assignments
Presentation / Jury
1
2
Project
1
20
Seminar / Workshop
1
Midterms / Oral Exams
1
15
Final / Oral Exam
21
    Total
133

 

COURSE LEARNING OUTCOMES AND PROGRAM QUALIFICATIONS RELATIONSHIP

#
Program Qualifications / Outcomes
* Level of Contribution
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.
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.
3 Developing and championing new approaches to contribute the field of finance through apprehending the research methods.
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.
5 Conducting independent research, analyzing scientific phenomenon through broad, deep and critical perspective, arriving at new syntheses and evaluations in the discipline of finance.
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.
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.
8 Following pioneering and innovative theories and methods in the field of finance and implementing them in analysis and research.
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.
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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