FNS302 Financial ManagementIstanbul Okan UniversityDegree Programs International FinanceGeneral Information For StudentsDiploma SupplementErasmus Policy StatementNational Qualifications
International Finance
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: Spring
Course Credits:
Theoretical Practical Credit ECTS
3 0 3 6
Language of instruction: TR
Course Requisites:
Does the Course Require Work Experience?: No
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) Explain the essential body of knowledge in the area of banking and insurance, including evolution of the discipline, the state-of-the-art concepts, scientific methodology, theories and models.
1) -explain the essential body of knowledge in the area of banking and insurance, including evolution of the discipline, the state-of-the-art concepts, scientific methodology, theories and models.
2)  employ the appropriate tools and analytical techniques to collect and analyze quantitative and qualitative data in the related areas, interpret results and propose solutions.
2) Employ the appropriate tools and analytical techniques to collect and analyze quantitative and qualitative data in the related areas, interpret results and propose solutions.
3)  recognize and assess legal environment in banking and insurance industries
3) Recognize and assess legal environment in banking and insurance industries.
4) Explain ongoing operational and managerial methods in banking and insurance industries.
4)  explain ongoing operational and managerial methods in banking and insurance industries.
5) Discover and create entrepreneurial opportunities and expertise to successfully establish and develop their own ventures.
5)  discover and create entrepreneurial opportunities and expertise to successfully establish and develop their own ventures.
6)  develop the capacity to assess current global economic issues.
6) Develop the capacity to assess current global economic issues.
7)  express he role of international capital markets in the global economy; accordingly define the concept of risk in terms of measurement and management.
7) Translate and explain the content of the documents written in English related to the field .
8)  translate and explain the content of the documents written in English related to the field .
8) Express he role of international capital markets in the global economy; accordingly define the concept of risk in terms of measurement and management.
9) Identify standards of personal, professional, social and business ethics, evaluate the ethical implications of various practices in the related areas, and be aware the importance of ethical behavior in adding value to the society.
9)  identify standards of personal, professional, social and business ethics, evaluate the ethical implications of various practices in the related areas, and be aware the importance of ethical behavior in adding value to the society.

Course - Learning Outcome Relationship

No Effect 1 Lowest 2 Low 3 Average 4 High 5 Highest
           
Program Outcomes Level of Contribution
1) Explain the essential body of knowledge in the area of banking and insurance, including evolution of the discipline, the state-of-the-art concepts, scientific methodology, theories and models. 5
1) -explain the essential body of knowledge in the area of banking and insurance, including evolution of the discipline, the state-of-the-art concepts, scientific methodology, theories and models.
2)  employ the appropriate tools and analytical techniques to collect and analyze quantitative and qualitative data in the related areas, interpret results and propose solutions. 4
2) Employ the appropriate tools and analytical techniques to collect and analyze quantitative and qualitative data in the related areas, interpret results and propose solutions. 5
3)  recognize and assess legal environment in banking and insurance industries
3) Recognize and assess legal environment in banking and insurance industries.
4) Explain ongoing operational and managerial methods in banking and insurance industries.
4)  explain ongoing operational and managerial methods in banking and insurance industries.
5) Discover and create entrepreneurial opportunities and expertise to successfully establish and develop their own ventures.
5)  discover and create entrepreneurial opportunities and expertise to successfully establish and develop their own ventures.
6)  develop the capacity to assess current global economic issues. 5
6) Develop the capacity to assess current global economic issues. 5
7)  express he role of international capital markets in the global economy; accordingly define the concept of risk in terms of measurement and management.
7) Translate and explain the content of the documents written in English related to the field .
8)  translate and explain the content of the documents written in English related to the field .
8) Express he role of international capital markets in the global economy; accordingly define the concept of risk in terms of measurement and management. 5
9) Identify standards of personal, professional, social and business ethics, evaluate the ethical implications of various practices in the related areas, and be aware the importance of ethical behavior in adding value to the society.
9)  identify standards of personal, professional, social and business ethics, evaluate the ethical implications of various practices in the related areas, and be aware the importance of ethical behavior in adding value to the society.

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