Managerial Finance(EM 533)
| Course Code | Course Name | Semester | Theory | Practice | Lab | Credit | ECTS |
|---|---|---|---|---|---|---|---|
| EM 533 | Managerial Finance | 3 | 4 | 0 | 0 | 3 | 8 |
| Prerequisites | |
| Admission Requirements |
| Language of Instruction | English |
| Course Type | Compulsory |
| Course Level | Masters Degree |
| Course Instructor(s) | Abdullah Çağrı TOLGA ctolga@gsu.edu.tr (Email) |
| Assistant | |
| Objective | The objective of the course is to review the fundamental concepts and techniques of financial management such as financial analysis, financial forecasting, valuation of corporate securities, portfolio theory, and measure of portfolio performance. A basic knowledge of these techniques is required for proper decision making and improving the financial performance of firms. |
| Content | Overview of financial statements, Financial ratio analysis, Financial forecasting, Financial planning, Time value of money, Risk and rates of return, Portfolio selection, Basics of options markets and option valuation |
| Course Learning Outcomes |
LO 1: Review of basic financial statements LO 2: Financial ratio analysis LO 3: Financial forecasting models LO 4: Financial budgeting LO 5: Risk and diversification in investment management LO 6: Modern portfolio theory LO 7: Capital asset pricing model LO 8: Measuring portfolio performance LO 9: Evaluation of stocks and bonds LO 10: Cost of capital LO 11: Basics of financial options |
| Teaching and Learning Methods | Lecture; problem sessions; discussion; self study. |
| References |
- Weston, J.F., Brigham, E.F., Essentials of Managerial Finance, Ninth Edition, The Dryden Press, 1990. - Higgins, R.C., Analysis for Financial Management, Fourth Edition, Irwin, 1995. |
Theory Topics
| Week | Weekly Contents |
|---|---|
| 1 | Introduction and organization. Overview of financial statements. |
| 2 | Sources and uses statement. Cash flow statement. Inflation and the assessment of company performance . |
| 3 | Financial ratio analysis: Liquidity ratios, asset management ratios, debt management ratios, profitability ratios. Market value ratios. Du Pont system. |
| 4 | Financial forecasting. The percentage of sales method. Financial planning. Breakeven analysis, degree of operating leverage, degree of financial leverage, degree of total leverage. |
| 5 | Time value of money. Risk and rates of return. Defining and measuring risk. Relationship between risk and rates of return. |
| 6 | Midterm |
| 7 | Markowitz portfolio selection model. Capital asset pricing model (CAPM). Basics of arbitrage pricing theory (APT). |
| 8 | Global bond markets. Bond and stock valuation: Bond valuation, common stock valuation. |
| 9 | Methods of portfolio performance evaluation. Cost of capital. |
| 10 | Basics of options markets and option valuation: Option contract, call options, put options, option strategies. Introduction to option valuation. |
| 11 | Project presentations. |
Practice Topics
| Week | Weekly Contents |
|---|
Contribution to Overall Grade
| Number | Contribution | |
|---|---|---|
| Contribution of in-term studies to overall grade | 6 | 60 |
| Contribution of final exam to overall grade | 1 | 40 |
| Toplam | 7 | 100 |
In-Term Studies
| Number | Contribution | |
|---|---|---|
| Assignments | 4 | 20 |
| Presentation | 0 | 0 |
| Midterm Examinations (including preparation) | 1 | 20 |
| Project | 0 | 0 |
| Laboratory | 0 | 0 |
| Other Applications | 0 | 0 |
| Quiz | 0 | 0 |
| Term Paper/ Project | 1 | 20 |
| Portfolio Study | 0 | 0 |
| Reports | 0 | 0 |
| Learning Diary | 0 | 0 |
| Thesis/ Project | 0 | 0 |
| Seminar | 0 | 0 |
| Other | 0 | 0 |
| Make-up | 0 | 0 |
| Toplam | 6 | 60 |
| No | Program Learning Outcomes | Contribution | ||||
|---|---|---|---|---|---|---|
| 1 | 2 | 3 | 4 | 5 | ||
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| 6 | X | |||||
| 7 | X | |||||
| 8 | X | |||||
| 9 | X | |||||
| 10 | X | |||||
| 11 | X | |||||
| 12 | X | |||||
| Activities | Number | Period | Total Workload |
|---|---|---|---|
| Class Hours | 11 | 4 | 44 |
| Working Hours out of Class | 10 | 3 | 30 |
| Assignments | 4 | 15 | 60 |
| Presentation | 1 | 20 | 20 |
| Midterm Examinations (including preparation) | 1 | 15 | 15 |
| Project | 1 | 20 | 20 |
| Laboratory | 0 | 0 | 0 |
| Other Applications | 0 | 0 | 0 |
| Final Examinations (including preparation) | 1 | 18 | 18 |
| Quiz | 0 | 0 | 0 |
| Term Paper/ Project | 0 | 0 | 0 |
| Portfolio Study | 0 | 0 | 0 |
| Reports | 0 | 0 | 0 |
| Learning Diary | 0 | 0 | 0 |
| Thesis/ Project | 0 | 0 | 0 |
| Seminar | 0 | 0 | 0 |
| Other | 0 | 0 | 0 |
| Make-up | 0 | 0 | 0 |
| Total Workload | 207 | ||
| Total Workload / 25 | 8.28 | ||
| Credits ECTS | 8 | ||