BA4839 FINANCIAL MODELING WITH SPREADSHEET
| Course Code: | 3124839 |
| METU Credit (Theoretical-Laboratory hours/week): | 3 (3.00 - 0.00) |
| ECTS Credit: | 6.0 |
| Department: | Business Administration |
| Language of Instruction: | English |
| Level of Study: | Undergraduate |
| Course Coordinator: | Assoc.Prof.Dr. İLKAY ŞENDENİZ YÜNCÜ, Assist.Prof.Dr HANDE AYAYDIN HACIÖMEROĞLU |
| Offered Semester: | Fall Semesters. |
Course Objectives
By the end of the course the students will know the financial models in the area of corporate finance (capital structure) and portfolio theory (Markowitz portfolio theory and the Capital Asset Pricing Model). Moreover, at the end of this course the students will be able to apply these models with real life examples using spreadsheet programs.
Course Content
Provide students with the knowledge to apply the theories they have learned using spreadsheets. The students who know the essentials of corporate finance theories should also be able to solve the financial models numerically in order to enhance their knowledge in the field. The lecture includes models in the area of corporate finance, financial statement analysis, portfolio theory and duration. These models will be explained and then the models will be implemented numerically by using spreadsheets. This lecture will help the undergrad students to enhance their theoretical and practical knowledge related to the financial modelling.
Course Learning Outcomes
Upon successful completion of this course, students should be able to:
Course Specific Skills:
1. Calculate the future and present value for annuities, net present value and internal rate of return by using functions and formulas in a spreadsheet
2. Make capital budgeting decisions. Learn how to challenge issues like sunk costs, taxes, different depreciation methods, different life spans of projects, mid-year discounting, multiple IRRs, and inflation
3. Understand how to choose discount rates for different investment opportunities
4. Calculate Free Cash Flows for valuation purposes
5. Know how to use DCF model for valuation
6. Calculate risk and return for financial instruments
7. Form investment portfolios, calculate and draw efficient frontier
8. Learn to find optimum risky portfolio by employing Capital Asset Pricing Model (CAPM) and Security Market Line (SML)
9. Measure the performance of the portfolio
10. Calculate cost of capital by using CAPM
11. Model the Term Structure of Interest Rates and price the bond by using real life data
12. Price stocks by using real life data
13. Understand the capital structure of the firms and value them accordingly
Discipline Specific Skills:
Develop an understanding of:
14. how spreadsheet programs can be used to solve financial problems in general
15. how spreadsheet programs can be used when different financial instruments and firms are priced
Personal and Key Skills:
16 Develop problem solving skills
17. Develop spreadsheet program using skills
Program Outcomes Matrix
| Level of Contribution | |||||
| # | Program Outcomes | 0 | 1 | 2 | 3 |
| 1 | They attain advanced level of knowledge in the functional areas of business administration such as strategic management, marketing, accounting, finance, organization management, human resources, and operations management. | ✔ | |||
| 2 | They are capable of identifying and analyzing legal, environmental and social factors, which influence the basic functional areas of the business administration. | ✔ | |||
| 3 | They understand and implement rational, systematic and scientific approaches effectively in problem solving and decision-making processes. | ✔ | |||
| 4 | They are capable of applying, analyzing, synthesizing and evaluating the knowledge they have in diverse fields efficiently | ✔ | |||
| 5 | They are capable of transferring information by using efficient verbal and written communication techniques. | ✔ | |||
| 6 | They are capable of performing professional communication effectively also in English. | ✔ | |||
| 7 | They know the methods of performing efficient teamwork. | ✔ | |||
| 8 | They are capable of following the contemporary techniques, scientific and technological developments in their fields and are able to conduct research and studies in order to develop their business administration related knowledge, skills, and competences. | ✔ | |||
| 9 | They are knowledgeable in the areas of professional ethics and responsibility. | ✔ | |||
| 10 | They are capable of utilizing their knowledge and skills efficiently in global and multicultural contexts. | ✔ | |||
| 11 | They are knowledgeable in the issues of environment, social responsibility, social justice, quality and cultural values | ✔ | |||
| 12 | They have a creative, innovative and critical perspective. | ✔ | |||
0: No Contribution 1: Little Contribution 2: Partial Contribution 3: Full Contribution