Financial Theory(EC 502)
| Course Code | Course Name | Semester | Theory | Practice | Lab | Credit | ECTS |
|---|---|---|---|---|---|---|---|
| EC 502 | Financial Theory | 2 | 3 | 0 | 0 | 3 | 6 |
| Prerequisites | |
| Admission Requirements |
| Language of Instruction | Turkish |
| Course Type | Compulsory |
| Course Level | Masters Degree |
| Course Instructor(s) | Celalettin Ruhi TUNCER rtuncer@gsu.edu.tr (Email) |
| Assistant | |
| Objective | The goal of the course is to enable students to gain a solid theoretical background in finance and financial applications ---with special focus on corporate finance. In addition, the students are encouraged to gain expertise on the most recent financial concepts. |
| Content |
Week 1. Introduction Week 2. The Concept and Scope of Finance Week 3. Time Value of Money and the Concept of Risk and Uncertainty Week 4. Capital Budgeting Week 5. Cost of Capital and Its Determination Week 6. Capital Structure Theories Week 7. Capital Structure Theories (Cont’d) Week 8. Mid-term Exam Week 9. Valuation of Fixed-Income Securities Week 10 Valuation of Non-Fixed Income Securities Week 11. Company Valuation Week 12. Mergers and Acqusitions Week 13. Financial Intermediation Week 14. Review |
| Course Learning Outcomes |
Upon successful completion of the course the student should be able: 1. to know the concept and scope of finance/corporate finance. 2. to be familiar with the major theories on finance/corporate finance 3. to contribute to the theoretical and practical knowledge on financial applications 4. to detect financial weaknesses and strength of a corporate entity 5.t o conduct original research that will contribute to finance thery locally and internationally. |
| Teaching and Learning Methods | |
| References |
1.Ross, Stephen, et. al. Corporate Finance New York: McGraw-Hill/Irwin, 2006, 8. ed. 2.Brigham, Eugene, et.al. Financial Management, 13. ed., New York: South – Western, 2010 3.Brigham, Eugene, et.al. Intermediate Financial Management, 11.ed. New York: South – Western, 2012 4.Göker, Orhan Yatırım Projelerinin Değerlendirilmesi: Teori ve Uygulama İstanbul, Atlantis Yayınevi, 1996 |
Theory Topics
| Week | Weekly Contents |
|---|---|
| 1 | Introduction |
| 2 | The Concept and Scope of Finance |
| 3 | Time Value of Money and the Concept of Risk and Uncertainty |
| 4 | Capital Budgeting |
| 5 | Cost of Capital and Its Determination |
| 6 | Capital Structure Theories |
| 7 | Capital Structure Theories (Cont’d) |
| 8 | Mid-term Exam |
| 9 | Valuation of Fixed-Income Securities |
| 10 | Valuation of Non-Fixed Income Securities |
| 11 | Company Valuation |
| 12 | Mergers and Acqusitions |
| 13 | Financial Intermediation |
| 14 | Review |
Practice Topics
| Week | Weekly Contents |
|---|
Contribution to Overall Grade
| Number | Contribution | |
|---|---|---|
| Contribution of in-term studies to overall grade | 0 | 40 |
| Contribution of final exam to overall grade | 0 | 60 |
| Toplam | 0 | 100 |
In-Term Studies
| Number | Contribution | |
|---|---|---|
| Assignments | 0 | 0 |
| Presentation | 0 | 0 |
| Midterm Examinations (including preparation) | 0 | 0 |
| Project | 0 | 0 |
| Laboratory | 0 | 0 |
| Other Applications | 0 | 0 |
| Quiz | 0 | 0 |
| Term Paper/ Project | 0 | 0 |
| Portfolio Study | 0 | 0 |
| Reports | 0 | 0 |
| Learning Diary | 0 | 0 |
| Thesis/ Project | 0 | 0 |
| Seminar | 0 | 0 |
| Other | 0 | 0 |
| Toplam | 0 | 0 |
| No | Program Learning Outcomes | Contribution | ||||
|---|---|---|---|---|---|---|
| 1 | 2 | 3 | 4 | 5 | ||
| Activities | Number | Period | Total Workload |
|---|---|---|---|
| Class Hours | 14 | 3 | 42 |
| Working Hours out of Class | 12 | 6 | 72 |
| Midterm Examinations (including preparation) | 1 | 20 | 20 |
| Final Examinations (including preparation) | 1 | 43 | 43 |
| Total Workload | 177 | ||
| Total Workload / 25 | 7,08 | ||
| Credits ECTS | 7 | ||