Dokuz Eylul University
Faculty of Business, Department of Economics
COURSE
FIN 2002-BUSINESS FINANCE
SEMESTER
Fall 2014
INSTRUCTOR
Prof. Dr. Pınar EVRİM MANDACI
E-MAIL
pinar.evrim@deu.edu.tr
CLASS SCHEDULE
9.30.12.00
OFFICE
A 117
OFFICE HOURS
Monday 15.00-16.00
COURSE OBJECTIVES:
The objective of the course is to teach the foundation of Managerial Finance by introducing
the basic concepts of modern theory and application of principles of corporate finance.
Furthermore the course aims to equip the students in applying the theory of corporate
finance in corporate financial decision-makings.
METHOD OF TEACHING:
The material will be first lectured by me. Following the lectures, there will be some problem
solving sessions for selected chapters. Each student is expected to read the material prior
to the class. Detailed information regarding are provided below in corresponding sections
of this syllabus.
TEXTBOOK:
Principles of Managerial Finance, by Lawrence J. Gitman (published by Addison Wesley –
13nd Edition).
EXAMS:
There will be one midterm exam and a final exam. There will be also some short quizzes.
The main reason why there will be quizzes is to keep you up with the schedule. In other
words, in this course, content of each chapter is built on the previous ones and are highly
related. In this respect, when you take the quizzes, submit your assignments and most
importantly attend the class on a regular basis, you will be almost ready for the midterm
and final exams. The quizzes will take around 15-20 minutes and will be conducted at the
beginning or end of the lectures. In addition, your lowest quiz score will be dropped and
will not be counted towards your average quiz grade. If you miss a quiz, that will be
considered as your lowest quiz score. More information will be provided about quizzes as
we proceed in the semester.
Midterm and final exams will consist of multiple-choice questions (almost 20%)and
problems (almost %80). The end-of-chapter problems will be excellent sources to prepare
for the midterm and final since the exams will be similar to these problems. Final exam will
be comprehensive. You may bring a one-sided formula sheet during all exams. In exams,
you can use a calculator. Actually, I strongly recommend you to buy a sophisticated
calculator for this course as you will definitely need it throughout the semester.
In addition, you are required to prepare a term paper. Please form a group including 3
students and select a company listed in Borsa İstanbul and operating in the manufacturing
industry. The format for the term paper is given below. It consists of parts such as
Introduction, Economic Analysis, Sector Analysis, General Information about the Company,
Ratio Analysis, Pro-forma Financial Statements which are the topics of this course. Late
assignments will be neither accepted nor graded. At the end of the semester, there will be
presentations of your term papers.
FORMAT FOR THE TERM PAPER
TITLE: NAME OF THE COMPANY
1. INTRODUCTION
2. ECONOMIC ANALYSIS
a. GDP
b. Trade Deficit,
c. Budget Deficit
d. Interest Rate
e. Unemployment Rate and etc.
3. SECTOR ANALYSIS
a. Sales Volume
b. Historical Background
c. Structure
d. Competition
e. Regulations
f. Major players and etc.
4. GENERAL INFORMATION ABOUT THE COMPANY
a. Historical Background
b. Ownership Structure
5. RATIO ANALYSES
a. Time-series Analysis ( Comparison its performance for the last 3 years)
b. Cross- sectional Analysis (Comparison its performance with the sector
average or that of one of its competitors in the same industry only for the
last year)
6. PRO-FORMA FINANCIAL STATEMENTS
a. Forecasts for the whole economy
b. Expectations for the sector and the company
c. Pro-forma Income Statement
d. Pro-forma Balance Sheet
COURSE GRADING
Course grades will be based on a weighted composite of performance evaluations in
several areas:
Mid-term Exam
Termpaper
Quiz
Final Exam
30%
20%
10%
40%
COURSE OUTLINE:
1. WEEK
Sep 19
CHP
1
2
2.WEEK
Sep 26
3
3. WEEK
Oct 3
3
4. WEEK
Oct 10
4
5. WEEK
Oct 17
4
6. WEEK
7. WEEK
Oct 24
Oct 31
5
5
8. WEEK
9. WEEK
Nov 21
6
10. WEEK
Nov 28
6
and
7
11. WEEK
Dec 5
12, 13, 14 Dec
WEEKS
12,19,26
TOPIC
PROBLEMS
The Role of Managerial Finance Problem 2-5
The
Financial
Market
Environment
Financial Statements and Ratio
Analysis
Financial Statements and Ratio Problems: 3-2, 3-5, 3-10, 3-13, 3Analysis (cont) (Quiz 1)
15, 3-18, 3-23, 3-24, 3-25.
Cash Flow and Financial
Planning
Cash Flow and Financial Problems: 4-4, 4-5, 4-6, 4-9,4-11,
Planning (cont) (Quiz 2)
4-15, 4-19
Time Value of Money
Time Value of Money (cont)
Problems. 5-3, 5-5, 5-6, 5-8, 5-13,
5-15, 5-17, 5-18 (Case A&B), 5-19,
5-20, 5-22, 5-24, 5-28 (Case A&B),
5-31, 5-34, 5-36, 5-39, 5-43, 5-48,
5-52, 5-54, 5-61
MIDTERM
Interest Rates and
Valuation (Quiz 3)
Interest Rates and
Valuation (Cont)
Stock Valuation
Stock Valuation (Quiz 4)
PRESENTATIONS
Bond Problems: 6-8, 6-11, 6-15, 6-21, 624
Bond
Problems 7-7, 7-9,7-10,7-12,7-15,
7-18 (Firm A&B), 7-21