IZMIR UNIVERSITY OF ECONOMICS
COURSE
ITF 503 Advanced Corporate Finance
SEMESTER
Fall 2011
INSTRUCTOR
Assoc.Prof.Dr. Pınar EVRİM MANDACI
WEB PAGE
http://kisi.deu.edu.tr/pinar.evrim/
E-MAIL
CLASS SCHEDULE
pinar.evrim@deu.edu.tr
Thursday 18.30-21.30
COURSE OBJECTIVES:
This purpose of this course is to provide students the opportunity to develop deep skills and understanding of the
theory and practice that underlie corporate financial policy and related complex financial transactions. such net
present value and capital budgeting, valuation of the firm, cost of capital, capital structure and dividend policy.
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 as it will be much more beneficial to be prepared in advance for problem sessions.
TEXTBOOK:
Fundamentals of Corporate Finance, by Ross, Westerfield and Jordan (published by McGrawHill–Sixth Edition).
REFERENCE BOOKS AND JOURNALS:
RELATED WEB PAGES:
Business Week
Fortune
Forbes
Financial Times
Wall Street Journal
Active Finans
Aktüel Para Dergisi
www.businessweek.com
www.fortune.com
www.forbes.com
www.ft.com, www.usa.ft.com
www.wsj.com
www.activefinans.com
http://para.birnumara.com.tr
EXAMS:
There will be one midterm exam and a final throughout the course. There will be also some
problem sections and cases.
Midterm and final exams will consist of multiple-choice questions and problems. 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.
COURSE GRADING
Course grades will be based on a weighted composite of performance evaluations in several
areas:
Mid-term Exams
Problem sections and cases
Final
30 %
30%
40 %
PERCENT
90-100
85-89
80-84
75-79
70-74
65-69
60-64
50-59
49 AND BELOW
GRADE
4.0
3.5
3.0
2.5
2.0
1.5
1.0
0.5
0
AA
BA
BB
CB
CC
DC
DD
FD
FF
COURSE OUTLINE:
CHAPTER
Sep. 29,2011
Oct. 6,2011
Oct. 13,2011
7
8
Oct. 20,2011
9
Oct. 27,2011
Nov. 3,2011
Nov. 17,2011
Nov. 24,2011
Dec. 1,2011
Dec. 8,2011
Dec. 15,2011
Dec 22,2011
Dec 29,2011
10
Jan 5, 2012
18
11
15
16
17
TOPIC
Introduction
Interest Rates and Bond Valuation
Stock Valuation
Problem section and case solution
Net Present Value and Other
Investment Criteria
Making Capital Investment Decisions
Problem section and case solution
Project Analysis and Evaluation
Problem section and case solution
Midterm
Cost of Capital
Raising Capital
Problem section and case solution
Financial Leverage and Capital
Structure Policy
Dividend and Dividend Policy
Problem section and case solution
Final Exam

The above syllabus is tentative and can be changed by the instructor at any time.

The student is supposed to be aware of the facts written on the syllabus and should
keep a track of changes in the course conduct throughout the semester.