EASTERN MEDITERRANEAN UNIVERSITY
FACULTY OF BUSINESS AND ECONOMICS
DEPARTMENTS OF BANKING AND FINANCE
SPRING 2011-2012
COURSE TITLE
COURSE TYPE
LECTURER
COURSE
LEVEL
Corporate Finance
Area Core
Dr. Hasan U. ALTIOK
CREDIT VALUE
3 Credit Hrs.
PREREQUISITES
COREQUISITES
DURATION OF COURSE
ROOM AND TEL. NO.
I expect that everybody is familiar with basic financial concepts (FINA301)
None
One Semester (15 weeks)
BE 256 (FBE Building II), 630 2800 or 630 1475 (Secretary)
Tuesdays, 09.30-11.20 – Thursdays 09.30-11.20 or feel free to contact for an
appointment at other times e-mail: hasan.altiok@emu.edu.tr
COURSE CODE
OFFICE HOURS
FINA306
2nd Semester/Third Year (Undergraduate Course)
ECTS VALUE
6
TUTORIAL ASSISTANT
Mr. Barış Memduh Eren, BEA135 (FBE Building II) 630 2113
e-mail: bariseren2005@yahoo.com
WEB LINK
http://fbemoodle.emu.edu.tr (click on Spring 2011-2012> select Department of Banking & Finance >
find our course FINA 306 Corporate Finance)
CATALOGUE DESCRIPTION AIMS & OBJECTIVES
The aim of the course is to analyze the primary issues in modern corporate financial management. The focus will be on
the corporate practice (corporate financial policies) that will create value and maximize the wealth of shareholders. We
will be concerned with what financial managers do and why.
GENERAL LEARNING OUTCOMES (COMPETENCES)
On successful completion of this course, all students will have developed knowledge and understanding of:
- Corporate Form of Organization & Corporate Governance
- Brief Overview of Capital Budgeting
- Capital Markets and Capital Structure
- Debt Policy
- Payout Policy
- Corporate Valuation & Mergers/Acquisitions
On successful completion of this course, all students will have developed their skills in:
- Understanding of the Corporate form of organization and governance
- Applying capital budgeting tools and understanding the differences among the tools
- Understanding how the corporations finance and the processes
- Understanding the factors that affect the capital structure
- Understanding and applying the techniques for corporate valuation
On successful completion of this course, all students will have developed their appreciation of and respect for values
and attitudes regarding the issues of:
- The challenges faced by a financial manager
- The complexities and required skills in finance
- The importance of investments as a core personal skill in their future careers
RELATIONSHIP WITH OTHER COURSES
This course complements the foundation for all other finance related courses and must be taken by students interested
in finance
LEARNING / TEACHING METHOD AND ASSIGNMENTS
Class sessions will be devoted to the discussion of readings & chapter assignments. Therefore, please follow the
lectures closely and if you miss a lecture, get in touch with one of your classmates or with me.
In order for everyone to derive the maximum benefit from the classes, it is important to do the assigned reading and
chapter problems. The only way to master this material is by solving problems/practice questions and by doing the
assigned reading.
1
METHOD OF ASSESSMENT
Midterm exam
Final exam
Quizzes
35%
45%
20%
If you do experience difficulty in this course, please contact me as soon as you sense you are having trouble. I will be
glad to help you.
TEXTBOOK/S
R.A. Brealey, S. C. Myers, & A. Marcus. Fundamentals of Corporate Finance, 6th edition, McGraw-Hill Irwin, 2009.
INDICATIVE BASIC READING LIST
I strongly recommend that you regularly follow daily financial newspapers such as Dünya (in Turkish) and The Wall
Street Journal Europe or The Financial Times.
EXTENDED READING LIST
NONE
SEMESTER OFFERRED
2011-2012 Fall and Spring Semesters
CONTENT & SCHEDULE
Lectures will be held on Mondays (11.30-12.20/RD 102) and Wednesdays (08.30–10:20/RD 101). The tutorial hour is
on Mondays (10.30-11.20/RD 102). The lecture and tutorial topics within the semester are as in the following schedule
and the quiz dates will be announced in class:
Week
1
Dates
20/02/2012
24/02/2012
2
27/02/2012
02/03/2012
3
05/03/2012
09/03/2012
4
12/03/2012
16/03/2012
5
19/03/2012
23/03/2012
General Topic
Subject
Goals and Governance of the Firm (Chp. 1)
Introduction
Goals and Governance of the Firm (Chp. 1) Tutorial: Chp.1 Assignments
Net Present Value and Other Investment Criteria (Chp. 8) Tutorial: Chp.8
Assignments
Value #1
Net Present Value and Other Investment Criteria (Chp. 8) cont’d. Tutorial:
Chp.8 Assignments
Introduction to Corporate Financing (Chp. 14) Tutorial: Chp.14 Assignments
Overview of
Corporate Financing
Introduction to Corporate Financing (Chp. 14) cont’d Tutorial: Chp.14
Assignments
6
26/03/2012
30/03/2012
7
02/04/2012
03/04/2012
Revision
8
04/04/2012
14/04/2012
Midterm Examinations
9
16/04/2012
20/04/2012
10
23/04/2012
27/04/2012
11
30/04/2012
04/05/2012
12
07/05/2012
11/05/2012
13
14/05/2012
18/05/2012
14
21/05/2012
25/05/2012
15
28/05/2012
12/06/2012
Cost of Capital
The Weighted-Average Cost of Capital and Company Valuation (Chp.13)
Tutorial: Chp.13 Assignments
Venture Capital, IPOs, and Seasoned Offerings (Chp. 15) Tutorial: Chp.15
Assignments
Equity Financing
Venture Capital (Chp. 15) cont’d. Tutorial: Chp.15 Assignments
Debt Policy (Chp. 16). Tutorial: Chp.16 Assignments
Debt Policy
Debt Policy (Chp. 16) cont’d. Tutorial: Chp.16 Assignments
Payout Policy
Payout Policy (Chp. 17) Tutorial: Chp. 17 Assignments
Final Exams
PLAGIARISM & MAKE-UPS
This is intentionally failing to give credit to sources used in writing regardless of whether they are published or
unpublished. Plagiarism (which also includes any kind of cheating in exams) is a disciplinary offence and will be dealt
with accordingly. Students who have valid excuses will be allowed to take make-up examinations for all exams.
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3