EASTERN MEDITERRANEAN UNIVERSITY
FACULTY OF BUSINESS AND ECONOMICS
DEPARTMENT OF BANKING AND FINANCE
SPRING 2009-2010
COURSE CODE
COURSE TITLE
COURSE TYPE
LECTURER(S)
COURSE COORDINATOR
CREDIT VALUE
PREREQUISITES
FINA301 COURSE LEVEL 5 th semester /3rd year - Undergraduate
Financial Management
Area Core
Assoc. Prof. Dr. Mustafa Besim (Grp.01), Asst. Prof. Dr. Nesrin Ozatac (Grp. 02,03),
3 Credit Hrs.
None
ECTS VALUE 6
COREQUISITES
DURATION OF COURSE
None
One semester
INSTRUCTOR(S) WEB LINKS
TEXTBOOK WEB LINK http://www.emu.edu.tr/nozatac , http://fbemoodle.emu.edu.tr
(FINA301), http://bank.emu.edu.tr/ (FINA 301)
Visit www.mhhe.com/rwj and select “Essentials of Corporate Finance 6e”
OFFICE HOURS Will be announced
TUTORIAL ASSISTANT(S)
CATALOGUE DESCRIPTION
This course studies the essentials of corporate finance with basic theories. It covers time value of money, financial statement analysis, valuing stocks and bonds, capital budgeting, capital structure decisions and cost of capital estimation.
AIMS & OBJECTIVES
At the completion of this course, students are expected to have a good understanding of the basic financial ideas and principles applicable to corporate finance.
GENERAL LEARNING OUTCOMES (COMPETENCES)
On successful completion of this course, all students will have developed knowledge and understanding of:

Understanding financial statements
 Time value of money

Valuation of future cash flows
 Valuing stocks and bonds
On successful completion of this course, all students will have developed their skills in :
 Computation of future & present cash flows

Making capital investment decisions
 Analysis of financial statements
On successful completion of this course, all students will have developed their appreciation of and respect for values and attitudes regarding the issues of:
 Working with the financial statements

Evaluating investment projects
RELATIONSHIP WITH OTHER COURSES
It introduces the basics for investments and investment appraisal courses.
LEARNING / TEACHING METHOD
Class sessions will be devoted to the discussion of readings and chapter assignments. In order for everyone to derive the maximum benefit from the classes, it is important to do the assigned reading before the class. The only way to master this material is by solving problems. Written work for the course will consist of chapter problems, quizzes, a midterm exam and a final exam.
METHOD OF ASSESSMENT
Midterm Exam:
Final Exam:
30%
40%
Quizzes: 20%
Attend./ Class Part./Tutorial: 10%
ATTENDANCE
Attendance is compulsory in accordance with EMU regulations. Students are strongly advised not to miss lecture hours since success is closely related with attendance. Unexcused absence for more than twelve lecture hours will result in grade "F." If the unexcused absence is on a continual basis, the ‘NG’ grade will be given. Students are strongly advised not to miss lecture hours since success is closely related with attendance.
TEXTBOOK
Ross, Stephen A., Westerfield, Radolph W. and Jordan, Bradford D. (2007) 6e, Essentials of Corporate Finance, McGraw-Hill, NY,
USA.
INDICATIVE BASIC READING LIST
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We strongly recommend that you regularly follow daily financial newspapers such as Dünya (in Turkish) and The Wall Street Journal
Europe and / or The Financial Times.
SEMESTER OFFERRED
2009-2010 Fall Semester & Spring Semester
CONTENT & SCHEDULE
Lecture and tutorial hours are as follows:
1) Group 1 on Monday (10:30- 12:20), Wednesday (08:30- 10:20) Tutorial Hour: Wednesday 08:30-09:20
2) Group 2 on Tuesday(12:30-14:20), Friday (9:30- 11:20) Tutorial Hour: Friday10.30-11.20
3) Group 3 on Tuesday (09:30- 11:20), Friday(12:30- 14:20) Tutorial Hour: Tuesday 12.30-13.20
The lecture topics within the semester are as in the following schedule:
WEEKS CHAPTERS TOPICS
1
20.09.10
2
27.09.10
3
04.10.10
1
1
2
INTRODUCTION TO FINANCIAL MANAGEMENT
Ross, et.al., Chp. 1
Tutorial: Concept Checks and Chapter-end Problems
INTRODUCTION TO FINANCIAL MANAGEMENT
Ross, et.al., Chp. 1
Tutorial: Concept Checks and Chapter-end Problems
FINANCIAL STATEMENTS, TAXES AND CASH FLOW
4
11.10.10
5
18.10.10
3
3
Ross, et.al., Chp. 2
Tutorial: Balance sheet, income statement, cash flow applications.
WORKING WITH FINANCIAL STATEMENTS
Ross, et.al., Chp. 3
Tutorial: Computation of Financial Ratios
WORKING WITH FINANCIAL STATEMENTS
Ross, et.al., Chp. 3
Tutorial: Computation of Financial Ratios
6
25.10.10
7
01.11.10
4
5
INTRODUCTION TO VALUATION: THE TIME VALUE OF MONEY
Ross, et.al., Chp. 4
Tutorial: Computation of present and future values.
DISCOUNTED CASH FLOW VALUATION
Ross, et.al., Chp. 5
Tutorial: Future value, annuity, loan payment applications. (Financial calculators)
03-13.11.10
Midterm Examinations
9
22.11.10
10
29.11.10
11
06.11.10
12
13.11.10
13
20.11.10
14
27.11.10
15
03.01.11-18.01.11
5
6
7
8
9
12
DISCOUNTED CASH FLOW VALUATION
Ross, et.al., Chp. 5
Tutorial: Future value, annuity, loan payment applications. (Financial calculators)
INTEREST RATES AND BOND VALUATION
Ross, et.al., Chp. 6
Tutorial: Computations on bond valuation. (Financial calculators)
EQUITY MARKETS AND STOCK VALUATION
Ross, et.al., Chp.7
Tutorial: Computations on stock valuation. (Financial calculators)
NET PRESENT VALUE AND OTHER INVESTMENT CRITERIA
Ross, et.al., Chp. 8
Tutorial: Applications of investment criteria. (Financial calculators)
MAKING CAPITAL INVESTMENT DECISIONS
Ross, et.al., Chp. 9
Tutorial: Applications on cash flows. (Financial calculators)
COST OF CAPITAL
Ross, et.al., Chp. 12
Tutorial: Applications of WACC.
Final Examination
September 20th is the first day of classes
October 29th is national holiday
October 4th is the last day for add and drop
November 15th is national holiday
November 16-19 is religious holiday
December 3 rd
is the last day of course withdrawal
January 1 st is New Year’s day
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