Managerial Finance
zsener@gsu.edu.tr
Content
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.
Course 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.
Weekly Contents
| 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. |
Assessment System
| Activities | Number | Contribution |
|---|---|---|
| Contribution of in-term studies to overall grade | 2 | 50 |
| Contribution of final exam to overall grade | 1 | 50 |
| Total | 3 | 100 |
| Activities | Number | Contribution |
|---|---|---|
| Assignments | 0 | 0 |
| Presentation | 0 | 0 |
| Midterm Examinations (including preparation) | 1 | 30 |
| Project | 1 | 20 |
| 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 |
| Total | 2 | 50 |
Relation of Proficiency
| No | Program Learning Outcomes | Contribution | ||||
|---|---|---|---|---|---|---|
| 1 | 2 | 3 | 4 | 5 | ||
| 1 | X | |||||
| 2 | X | |||||
| 3 | X | |||||
| 4 | X | |||||
| 5 | X | |||||
| 6 | X | |||||
| 7 | X | |||||
| 8 | X | |||||
| 9 | X | |||||
| 10 | X | |||||
| 11 | X | |||||
| 12 | X | |||||
ECTS
| Activities | Number | Period | Total Workload |
|---|---|---|---|
| Class Hours | 11 | 4 | 44 |
| Working Hours out of Class | 10 | 4 | 40 |
| Presentation | 1 | 20 | 20 |
| Midterm Examinations (including preparation) | 1 | 30 | 30 |
| Project | 1 | 50 | 50 |
| Final Examinations (including preparation) | 1 | 15 | 15 |
| Total Workload | 199 | ||
| Total Workload / 25 | 7.96 | ||
| Credits ECTS | 8 | ||