FNC605 Advanced Financial TheoryIstanbul Okan UniversityDegree Programs PhD in Business Administration with a bachelor's degreeGeneral Information For StudentsDiploma SupplementErasmus Policy StatementNational Qualifications
PhD in Business Administration with a bachelor's degree
PhD TR-NQF-HE: Level 8 QF-EHEA: Third Cycle EQF-LLL: Level 8

General course introduction information

Course Code: FNC605
Course Name: Advanced Financial Theory
Course Semester: Fall
Spring
Course Credits:
Theoretical Practical Credit ECTS
3 0 3 8
Language of instruction:
Course Requisites:
Does the Course Require Work Experience?: No
Type of course: Department Elective
Course Level:
PhD TR-NQF-HE:8. Master`s Degree QF-EHEA:Third Cycle EQF-LLL:8. Master`s Degree
Mode of Delivery: Face to face
Course Coordinator : Prof. Dr. HALİT TARGAN ÜNAL
Course Lecturer(s):
Course Assistants:

Course Objective and Content

Course Objectives: This course is aimed at students; to make investment and financing decisions, to determine policies, to gain basic financial skills in understanding the different theoretical approaches to issues in business finance, and to concentrate on how they invest capital and where they invest this capital.
Course Content: Implementing the main finance policy decisions related to financial management in enterprises, teaching the necessary operational practices related to these decisions, developing their skills.

Learning Outcomes

The students who have succeeded in this course;
Learning Outcomes
1 - Knowledge
Theoretical - Conceptual
1) Teaching the effects of the factors in the objective function of the operator on the market value of the entity and teaching how the transition between the profitability and risk when the investor makes the financial and investment decisions affects the market value of the business.
2 - Skills
Cognitive - Practical
1) How well-functioning financial markets are able to transfer the funds available in an economy at the lowest cost through maturity, quantity and risk matching between fund-raising units and fund-raising units, thus increasing the effectiveness of economic growth.
3 - Competences
Communication and Social Competence
1) • Teaching financial markets, sub-finance markets, financial institutions, financial instruments
Learning Competence
Field Specific Competence
Competence to Work Independently and Take Responsibility

Lesson Plan

Week Subject Related Preparation
1) • Basic financial information and explanation of what is wanted to be done. • Explanation of the purpose of the Financial Management to whom it is made. • Explanation of the characteristics of the definition and structure of the bilge. • Explanation of the definition and structure of the Income Statement No.
2) • Introduction of markets where basic financial information is used, introduction of market actors, sub-markets and financial instruments used Study of the shared lecture note - presentation document along with the source book.
3) • Explanation of what financial statements are, • Explanation of analysis techniques for the purpose of financial analysis, • Comparative disclosure of financial statement analysis techniques, • Explaining what proportion analysis is, • To list what the rate groups are, to define, to interpret. Study of the shared lecture note - presentation document along with the source book.
4) • Explaining how current assets and liabilities of different sizes are affecting operating profitability and share prices. • Explaining how each of the business investment items is used, how the cash budget is created, and how the cash cycle is determined. • Explaining how to decide on the appropriate amount of current assets. Study of shared lecture note - presentation document with reference book
5) • Explaining how to decide on the appropriate amount of current assets. • Explain how businesses form credit policies and how credit policies affect sales and profitability. Week 5 Reading of the topics and submission of topics for discussion.
6) • Explain what the time value of money is and how it is in finance. • Calculation of the current or future value of one-time payments and disclosure of the interpretation. • Disclose today's and future values of irregular cash flow series showing how stock and corporate projects are evaluated. Week 6 Reading the topics and presenting sub topics for discussion
7) • Explanation of the reason for the differences in the capital structure of an operator when measured in terms of book value, market value or a target. • Explanation of the risk and financial risks of the business and discussion of the effects of debt financing on the expected turnover and risk of the operator. • Discussion of the analytical framework that can be used to determine optimal capital structure. • Explanation of the theory of the capital structure and explaining that the enterprises in different sectors tend to be capital structures in different structures. Week 7 Reading of the topics and sub-topics for discussion.
8) • Types of financial markets for their purposes. • Types of financial institutions for their purposes. • Types of financial instruments for their purposes. • The characteristics of financial statements. • Methods used to understand the time value of money. • Explanation of the rationale of financial rate analysis. Submission of titles under the midterm exam.
9) • Explaining why weighted average cost of capital is used in capital budgeting Study of topics covered by the midterm exam.
10) • Explanation of the way policies are set out to determine where and in which amounts the resources to be used in the financing of the enterprise can be obtained. • Explanation of methods that capital structure is changing depending on changing conditions. • Discussion of classical and modern methods that can be used to determine optimal capital structure. 10. Week Reading of the topics and sub-topics to be discussed in order to discuss them.
11) • Explanation and discussion of capital budgeting. • Describe the conditions under which the basic methods used in capital budgeting are used and how they are used. • A 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. 11. Week Reading of the topics and presentation of sub topics for discussion.
12) • Explaining why investors like to distribute more shares. • Disclosure of investors' liking of capital gains as a result of reinvestment of profits not distributed by the operator. • Discussing the various trade - off problems faced by enterprises while trying to establish optimal dividend distribution policies. Week 12 Reading of the topics and sub-topics for discussion.
13) • Discuss the importance of strategic planning and the central role that the financial forecast plays in the overall planning process. • Estimates of the methods by which the sales forecasts of the companies are realized. • Explanation of the relationship between additional resource requirement and asset growth. • Discussion of how planning is a repetitive process. Week 13 Reading the topics and sub-topics for discussion.
14) • Explaining the primary reasons for businesses to become global. • Explain how exchange rate transactions are, and interpret exchange rate ratios. • Discussing the intuition behind the exchange rate parity and discussing the purchase of strong parliaments. 14. Week reading of topics and presentation of sub-topics for discussion.
15) • Cost of capital, the measure of the calculation. • Calculation of weighted average cost of capital. • Calculation of marginal capital cost. • Calculation of the cost of funding sources in general. Study of shared lecture note - presentation document with reference book; review of course registrations.

Sources

Course Notes / Textbooks: Fundamentals of Corporate Finance
Stephen A. Ross & Randolph W. Westerfield & Bradford D. Jordan
© 2010, 2008, 2006 , 2003 by The McGraw-Hill Companies, Inc.
ISBN 0-07-738868-2
İşletme Finansmanı
Güven Sayılgan
© 2011, Turhan Kitabevi yayınları
ISBN 975-6486-50-3
References:

Course-Program Learning Outcome Relationship

Learning Outcomes

1

2

3

Program Outcomes
1) To gain basic knowledge about the basic functions in the field of business administration and to apply them in real life.
3) Evaluating the effects of political, legal, geographical, economic and technological factors on the competitive structure of the business area with team work and finding the necessary solutions.
4) To be aware of current issues in the field of business and to gain sensitivity to problems.
5) Transmission of written documents such as reports, printouts, internal correspondence orally in an effective manner.
6) Defining and analyzing the problem by forming a team within the framework of professional expertise and conceptual knowledge and using leadership qualities.
7) To be able to relate to other areas of business, to be aware of global and social ethical norms.

Course - Learning Outcome Relationship

No Effect 1 Lowest 2 Low 3 Average 4 High 5 Highest
           
Program Outcomes Level of Contribution
1) To gain basic knowledge about the basic functions in the field of business administration and to apply them in real life.
3) Evaluating the effects of political, legal, geographical, economic and technological factors on the competitive structure of the business area with team work and finding the necessary solutions.
4) To be aware of current issues in the field of business and to gain sensitivity to problems.
5) Transmission of written documents such as reports, printouts, internal correspondence orally in an effective manner.
6) Defining and analyzing the problem by forming a team within the framework of professional expertise and conceptual knowledge and using leadership qualities.
7) To be able to relate to other areas of business, to be aware of global and social ethical norms.

Learning Activity and Teaching Methods

Expression
Brainstorming/ Six tihnking hats
Lesson
Group study and homework
Lab
Reading
Problem Solving
Report Writing

Assessment & Grading Methods and Criteria

Oral Examination
Homework
Group project
Presentation

Assessment & Grading

Semester Requirements Number of Activities Level of Contribution
total %
PERCENTAGE OF SEMESTER WORK % 0
PERCENTAGE OF FINAL WORK %
total %

Workload and ECTS Credit Grading

Activities Number of Activities Duration (Hours) Workload
Course Hours 15 0 0
Laboratory 5 0 0
Application 5 0 0
Study Hours Out of Class 0 10 0
Project 10 0 0
Quizzes 5 0 0
Preliminary Jury 0 20 0
Midterms 20 0 0
Paper Submission 5 10 50
Jury 10 0 0
Final 20 10 200
Total Workload 250