Mechanical Engineering (English)
Bachelor	TR-NQF-HE: Level 6	QF-EHEA: First Cycle	EQF-LLL: Level 6

General course introduction information

Course Code:

FNS302

Course Name:

Financial Management

Course Semester:

Fall

Course Credits:

Theoretical	Practical	Credit	ECTS
3	0	3	6

Language of instruction:

Course Requisites:

Does the Course Require Work Experience?:

Type of course:

Compulsory

Course Level:

Bachelor

TR-NQF-HE:6. Master`s Degree

QF-EHEA:First Cycle

EQF-LLL:6. Master`s Degree

Mode of Delivery:

Face to face

Course Coordinator :

Prof. Dr. GÖKÇE TUNÇ

Course Lecturer(s):

Dr.Öğr.Üyesi TURGAY MÜNYAS

Course Assistants:

Course Objective and Content

Course Objectives:

The objective of this course is to introduce the students to the firm theory; role of the corporation; capital structure; debt-equity mix; bond valuation; Gordon growth model and stock valuation; capital budgeting; net present value; internal rate of return; modified internal rate of return; payback rule; discounted payback rule; average accounting return; capital market history; risk and return; risk premium; systematic and unsystematic risk; diversification; security market line; cost of debt capital; cost of equity capital; weighted average cost of capital; financial leverage; dividend policy.

Course Content:

Firm theory; role of the corporation; capital structure; debt-equity mix; bond valuation; Gordon growth model and stock valuation; capital budgeting; net present value; internal rate of return; modified internal rate of return; payback rule; discounted payback rule; average accounting return; capital market history; risk and return; risk premium; systematic and unsystematic risk; diversification; security market line; cost of debt capital; cost of equity capital; weighted average cost of capital; financial leverage; dividend policy.

Learning Outcomes

The students who have succeeded in this course;

Learning Outcomes

1 - Knowledge
Theoretical - Conceptual
1) Will be able to explain all the information regarding the structuring of capital, budgeting of capital, working capital management, dividend distribution policy.
2) Will be able to define the financial techniques required to form a basis for financial management in businesses, the time value of money, the measurement of financial performance of the business, the concepts of risk and return, the analysis of investments, the provision of resources, the management of the cash flow system, and the enterprise's ability to compete successfully in financial markets in general
3) Will be able to explain the techniques that are available and will be developed for financial management in businesses and the necessary methods and procedures for their implementation.
2 - Skills
Cognitive - Practical
3 - Competences
Communication and Social Competence
1) Will be able to discuss business ethics in business financial activities.
Learning Competence
Field Specific Competence
Competence to Work Independently and Take Responsibility

Lesson Plan

Week	Subject	Related Preparation
1)	• Explanation of what is wanted to be done with basic financial information. • Explaining for whom Financial Management is done according to its purpose. • Business ethics in financial management. • Defining the balance sheet and explaining its structure. • Defining the Income Statement and explaining its structure.	Study of the shared lecture note – presentation document together with the source book; re-watching the course recordings. Reading the topics of the 2nd week and presenting the sub-topics for discussion in the lesson.
2)	• Introduction of markets where basic financial information is used, presentation of market actors, sub-markets and financial instruments used	Study of the shared lecture note – presentation document together with the source book; re-watching the course recordings. Reading the topics of the 3rd week and presenting the sub-topics for discussion in the lesson.
3)	• Disclosure of what financial statements are • Explanation of analysis techniques according to the purpose of financial analysis • Comparative explanation of financial statement analysis techniques • Explain what ratio analysis is • Listing, defining, interpreting what ratio groups are • Explanation of balance sheet and income statement relationships of main ratios • Explaining the importance of return on equity ratio in management control and how other ratios affect this ratio • Explaining how to use Dupont's equation to develop equity holdings • Explaining how the ratios of one enterprise can be compared with the ratios of another enterprise at a given moment and over time, discussing trend changes over time, explaining how they may be affected by accounting practices and other factors.	Study of the shared lecture note – presentation document together with the source book; re-watching the course recordings. Reading the 4th week topics and presenting the sub-topics for discussion in the lesson.
4)	• Explain how different sizes of current assets and liabilities affect business profitability and stock prices. • Explaining how each of the working capital items is used, how the cash budget is created and how the cash cycle is determined • Explaining how it was decided to determine the appropriate amount of current assets • Explaining how businesses create their credit policies and how the effects of credit policies on sales and profitability occur. • Explain how bank loan, commercial paper and commercial loan costs are determined and how they affect working capital financing decisions.	Study of the shared lecture note – presentation document together with the source book; re-watching the course recordings. Reading the 5th week topics and presenting the sub-topics for discussion in the lesson.
5)	• Explain how different sizes of current assets and liabilities affect business profitability and stock prices. • Explain how each of the working capital items is used, how the cash budget is created and how the cash cycle is determined. • Explaining how it was decided to determine the appropriate amount of current assets. • Explaining how businesses create their credit policies and how the effects of credit policies on sales and profitability occur. • Explain how bank loan, commercial paper and commercial loan costs are determined and how they affect working capital financing decisions.	Study of the shared lecture note – presentation document together with the source book; re-watching the course recordings. Reading the 6th week topics and presenting the sub-topics for discussion in the lesson.
6)	• Explain what the time value of money means and its importance in finance • Explaining the calculation and interpretation of the present or future value of one-time payments • Explaining the different annuity types • Disclosure of present and future value calculations of series of irregular cash flows to show how equity and corporate projects are valued. • Explaining the difference between nominal, periodic and effective interest rates in order to compare alternative investment rates of return. • Explain the rationale for creating a loan amortization table to discuss the fundamentals of loan returns	Study of the shared lecture note – presentation document together with the source book; re-watching the course recordings. Reading the 7th week topics and presenting the sub-topics for discussion in the lesson.
7)	• Explaining the reason for differences in a business's capital structure when measured at book value, market value, or against a target • Disclose operational risk and financial risks and discuss the effects of debt financing on the expected return and risk of the business • Discussing the analytical framework that can be used in determining the optimal capital structure • Discussing the theory of capital structure and explaining that businesses in different sectors tend to have different capital structures.	Study of the shared lecture note – presentation document together with the source book; re-watching the course recordings. Presentation of the titles within the scope of the midterm exam.
8)	Midterm Exam	Studying the subjects in the midterm exam.
9)	• Explain why weighted average cost of capital is used in capital budgeting • In estimating the costs of different capital components; Description of debt, preferred stock, retained earnings, and comparisons of common stock • An explanation of why different cost components are combined to determine the entity's weighted average cost of capital.	Study of the shared lecture note – presentation document together with the source book; re-watching the course recordings. Reading the topics of the 10th week and presenting the sub-topics for discussion in the lesson.
10)	• Explaining the way of determining the policies regarding where and in what amounts the resources to be used in financing the business will be provided. • Explaining with methods that the capital structure is a structure that changes depending on the changing conditions. • Discussion of classical and modern methods that can be used in determining the optimal capital structure.	Study of the shared lecture note – presentation document together with the source book; re-watching the course recordings. Reading the 11th week topics and presenting the subheadings for discussion in the lesson.
11)	• Explaining and discussing capital budgeting • A description of the basic methods used in capital budgeting, under which conditions and how they are used. • Comparative explanation of the advantages of the net present value method from dynamic methods • Explanation of sensitivity analysis methods used in the evaluation of risky investment projects	Study of the shared lecture note – presentation document together with the source book; re-watching the course recordings. Reading the topics of the 12th week and presenting the sub-topics for discussion in the lesson.
12)	• An explanation of why investors like the business to distribute more shares • Disclosure that investors love the capital gains resulting from the reinvestment of undistributed profits by the business • Discussing various trade-off problems that businesses face while trying to establish optimal dividend distribution policies. • Disclosure of differences between stock splits and stock dividends • Explaining the relative advantages of stock repurchases and dividends from the perspective of both investors and businesses	Study of the shared lecture note – presentation document together with the source book; re-watching the course recordings. Reading the 13th week topics and presenting the sub-topics for discussion in the lesson.
13)	• Discuss the importance of strategic planning and the central role that financial forecasting plays in the overall planning process. • Estimation of the methods by which businesses make their sales forecasts. • Disclosure of relationship between additional resource requirement and asset growth • Discussing how planning is an iterative process	Study of the shared lecture note – presentation document together with the source book; re-watching the course recordings. Reading the topics of the 14th week and presenting the sub-topics for discussion in the lesson.
14)	• Explaining the primary reasons for businesses to be global • Explanation of how exchange rate transactions are and interpretation of exchange rate rates • Discussing the intuitions behind exchange rate parity and buying strong pairs • Explaining the risks and opportunities faced in investments in multinational enterprises • Identify some of the specific changes MNCs face and discuss how their capital budgets, capital structure and working capital policies are affected	Study of the shared lecture note – presentation document together with the source book; re-watching the course recordings. Submission of final subtitles.
15)	Final Exam	None

Sources

Course Notes / Textbooks:	Finansal Yönetim, Osman Okka, 2015, Nobel Yayınevi. ISBN 978-605-133-644-2 İşletme Finansmanı, Güven Sayılgan, 2011, Turhan Kitabevi Yayınları. ISBN 975-6486-50-3
References:	Finansal Yönetim, Osman Okka, 2015, Nobel Yayınevi. ISBN 978-605-133-644-2 İşletme Finansmanı, Güven Sayılgan, 2011, Turhan Kitabevi Yayınları. ISBN 975-6486-50-3

Course-Program Learning Outcome Relationship

Learning Outcomes	1	2	4	3
Program Outcomes
1) Sufficient knowledge in mathematics, science and engineering related to their branches; and the ability to apply theoretical and practical knowledge in these areas to model and solve engineering problems.
2) The ability to identify, formulate, and solve complex engineering problems; selecting and applying appropriate analysis and modeling methods for this purpose.
3) The ability to design a complex system, process, device or product under realistic constraints and conditions to meet specific requirements; the ability to apply modern design methods for this purpose. (Realistic constraints and conditions include such issues as economy, environmental issues, sustainability, manufacturability, ethics, health, safety, social and political issues, according to the nature of design.)
4) Ability to develop, select and use modern techniques and tools necessary for engineering applications; ability to use information technologies effectively.
5) Ability to design experiments, conduct experiments, collect data, analyze and interpret results to examine engineering problems or discipline-specific research topics.
6) The ability to work effectively in disciplinary and multidisciplinary teams; individual work skill.
7) Effective communication skills in Turkish oral and written communication; at least one foreign language knowledge; ability to write effective reports and understand written reports, to prepare design and production reports, to make effective presentations, to give and receive clear and understandable instructions.
8) Awareness of the need for lifelong learning; access to knowledge, ability to follow developments in science and technology, and constant self-renewal.
9) Conform to ethical principles, and standards of professional and ethical responsibility; be informed about the standards used in engineering applications.
10) Awareness of applications in business, such as project management, risk management and change management; awareness of entrepreneurship, and innovation; information about sustainable development.
11) The ability to work effectively in disciplinary and multidisciplinary teams; individual work skill.
12) In order to gain depth at least one, physics knowledge based on chemistry knowledge and mathematics; advanced mathematical knowledge, including multivariable mathematical and differential equations; familiarity with statistics and linear algebra.
13) The ability to work in both thermal and mechanical systems, including the design and implementation of such systems.

Course - Learning Outcome Relationship

No Effect	1 Lowest	2 Low	3 Average	4 High	5 Highest

	Program Outcomes	Level of Contribution
1)	Sufficient knowledge in mathematics, science and engineering related to their branches; and the ability to apply theoretical and practical knowledge in these areas to model and solve engineering problems.
2)	The ability to identify, formulate, and solve complex engineering problems; selecting and applying appropriate analysis and modeling methods for this purpose.
3)	The ability to design a complex system, process, device or product under realistic constraints and conditions to meet specific requirements; the ability to apply modern design methods for this purpose. (Realistic constraints and conditions include such issues as economy, environmental issues, sustainability, manufacturability, ethics, health, safety, social and political issues, according to the nature of design.)
4)	Ability to develop, select and use modern techniques and tools necessary for engineering applications; ability to use information technologies effectively.
5)	Ability to design experiments, conduct experiments, collect data, analyze and interpret results to examine engineering problems or discipline-specific research topics.
6)	The ability to work effectively in disciplinary and multidisciplinary teams; individual work skill.
7)	Effective communication skills in Turkish oral and written communication; at least one foreign language knowledge; ability to write effective reports and understand written reports, to prepare design and production reports, to make effective presentations, to give and receive clear and understandable instructions.
8)	Awareness of the need for lifelong learning; access to knowledge, ability to follow developments in science and technology, and constant self-renewal.
9)	Conform to ethical principles, and standards of professional and ethical responsibility; be informed about the standards used in engineering applications.
10)	Awareness of applications in business, such as project management, risk management and change management; awareness of entrepreneurship, and innovation; information about sustainable development.
11)	The ability to work effectively in disciplinary and multidisciplinary teams; individual work skill.
12)	In order to gain depth at least one, physics knowledge based on chemistry knowledge and mathematics; advanced mathematical knowledge, including multivariable mathematical and differential equations; familiarity with statistics and linear algebra.
13)	The ability to work in both thermal and mechanical systems, including the design and implementation of such systems.

Learning Activity and Teaching Methods

Field Study
Expression
Brainstorming/ Six tihnking hats
Individual study and homework
Lesson
Reading
Q&A / Discussion
Case Study

Assessment & Grading Methods and Criteria

Written Exam (Open-ended questions, multiple choice, true-false, matching, fill in the blanks, sequencing)
Homework

Assessment & Grading

Semester Requirements	Number of Activities	Level of Contribution
Quizzes	2	% 30
Midterms	1	% 30
Final	1	% 40
total		% 100
PERCENTAGE OF SEMESTER WORK		% 60
PERCENTAGE OF FINAL WORK		% 40
total		% 100

Workload and ECTS Credit Grading

Activities	Number of Activities	Workload
Course Hours	16	48
Study Hours Out of Class	13	52
Project	1	12
Homework Assignments	6	12
Quizzes	4	2
Midterms	13	39
Final	1	22
Total Workload		187