Code IAM521
Credits 3(3-0)
ECTS 8.0
Objective The objective of this course is to familiarize the students with the world of finance, viewed especially from a corporation’s angle. The technical objectives include teaching about a wide array of concepts ranging from the basics of risk, return, time value of money and valuation to the more advanced discussions of capital budgeting and capital structure. The conceptual objectives include creating awareness about the variety and complexity of the financial decisions that are faced by the manager of a corporation on a daily basis. Finally, the philosophical objectives include demonstrating how the "world of finance" can be fascinatingly interesting and surprisingly challenging in a rather enjoyable way
Content Examination of special issues in finance incorporating advanced theory and practice with emphasis on investment and financing decisions of the firm. Special references to applications in Turkey. Outline of Topics: An Overview of Financial Management. Financial Statements, Cash Flow, and Taxes. Analysis of Financial Statements. The Financial Environment: Markets, Institutions, and Interest Rates. Risk and Return. Time Value of Money. Bonds and Their Valuation. Stocks and Their Valuation. The Cost of Capital. The Basics of Capital Budgeting. Cash Flow Estimation and Other Topics in Capital Budgeting. Capital Structure Decisions. Distribution to Shareholders: Dividends and Repurchases. Issuing Securities, Refunding, and Other Topics. Lease Financing. Current Asset Management. Mergers, LBOs, Divestitures, and Holding Companies.