Finance Engineering(IND423)
| Course Code | Course Name | Semester | Theory | Practice | Lab | Credit | ECTS |
|---|---|---|---|---|---|---|---|
| IND423 | Finance Engineering | 8 | 3 | 0 | 0 | 3 | 5 |
| Prerequisites | |
| Admission Requirements |
| Language of Instruction | |
| Course Type | Compulsory |
| Course Level | Bachelor Degree |
| Course Instructor(s) | E. Ertuğrul KARSAK ekarsak@gsu.edu.tr (Email) Nazlı GÖKER MUTLU nagoker@gsu.edu.tr (Email) |
| Assistant | |
| Objective | The aim of this course is to equip students with knowledge and skills concerning fundamentals of financial management, financial instruments and portfolio management. |
| Content |
- Enterprise cycle. Review of balance sheet and income statement. - Sources-uses statement. Cash flow statement. - Applications of sources-uses statement and cash flow statement. - Financial ratio analysis. Profitability analysis. Liquidity analysis. Financial structure. Market ratios. - Financial budgeting. Breakeven analysis and leverages. - Financial forecasting models. Financial mathematics. - Risk analysis in investment decisions. Estimating risk of a portfolio. Diversification. Relationship between risk and return. - Modern portfolio theory (MPT). Capital asset pricing model (CAPM). - Measuring the performance of a portfolio. - Value at risk (VaR). - Net present value. Internal rate of return. Payback period. Profitability index. Cost of capital. - Evaluation of stocks and bonds. - Calculating enterprise value using discounted cash flow analysis. - Introduction to financial options. Option types. |
| Course Learning Outcomes |
This course enables students to: 1. Identify the basic financial statements, 2. Conduct financial ratio analysis, 3. Employ financial forecasting models, 4. Implement financial budgeting techniques, 5. Identify risk in investment management, 6. Implement Markowitz portfolio selection model and capital asset pricing model, 7. Measure portfolio performance, 8. Compute VaR, 9. Conduct the evaluation of stocks and bonds, 10. Calculate cost of capital, 11. Calculate enterprise value using discounted cash flow analysis, 12. Explain the 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. - Zutter, C.J., Smart, S.B., Principles of Managerial Finance, Fifteenth edition, Pearson, 2019. |
Theory Topics
| Week | Weekly Contents |
|---|
Practice Topics
| Week | Weekly Contents |
|---|
Contribution to Overall Grade
| Number | Contribution | |
|---|---|---|
| Contribution of in-term studies to overall grade | 2 | 50 |
| Contribution of final exam to overall grade | 1 | 50 |
| Toplam | 3 | 100 |
In-Term Studies
| 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 |
| Toplam | 2 | 50 |
| No | Program Learning Outcomes | Contribution | ||||
|---|---|---|---|---|---|---|
| 1 | 2 | 3 | 4 | 5 | ||
| 1 | Knowledge and understanding of a wide range of basic sciences (math, physics, ...) and the main concepts of engineering | X | ||||
| 2 | Ability to combine the knowledge and skills to solve engineering problems and provide reliable solutions | X | ||||
| 3 | Ability to select and apply methods of analysis and modeling to ask, reformulate and solve the complex problems of industrial engineering | X | ||||
| 4 | Ability to conceptualize complex systems, processes or products under practical constraints to improve their performance, ability to use innovative methods of design | X | ||||
| 5 | Ability to design, select and apply methods and tools needed to solve problems related to the practice of industrial engineering, ability to use computer technology | X | ||||
| 6 | Ability to design experiments, collect and interpret data and analyze results | X | ||||
| 7 | Ability to work independently, ability to participate in working groups and have a multidisciplinary team spirit | X | ||||
| 8 | Ability to communicate effectively, ability to speak at least two foreign languages | X | ||||
| 9 | Awareness of the need for continuous improvement of lifelong learning, ability to keep abreast of scientific and technological developments to use the tools of information management | X | ||||
| 10 | Awareness of professional and ethical responsibility | X | ||||
| 11 | Knowledge of the concepts of professional life as "project management", "risk management" and "management of change" | X | ||||
| 12 | Knowledge on entrepreneurship, innovation and sustainability | |||||
| 13 | Understanding of the effects of Industrial Engineering applications on global and social health, environment and safety. | |||||
| 14 | Knowledge of the problems of contemporary society | |||||
| 15 | Knowledge of the legal implications of the practice of industrial engineering | |||||
| Activities | Number | Period | Total Workload |
|---|---|---|---|
| Class Hours | 14 | 3 | 42 |
| Working Hours out of Class | 13 | 3 | 39 |
| Midterm Examinations (including preparation) | 1 | 6 | 6 |
| Project | 1 | 24 | 24 |
| Final Examinations (including preparation) | 1 | 14 | 14 |
| Total Workload | 125 | ||
| Total Workload / 25 | 5,00 | ||
| Credits ECTS | 5 | ||