BUS281 PRINCIPLES OF FINANCE
| Course Code: | 3530281 |
| 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: | Lecturer Dr. SÜLEYMAN EROL |
| Offered Semester: | Fall Semesters. |
Course Objectives
Student during this course will be able to:
- To identify the primary activities of the financial manager and to describe the legal forms of business organization.
- To contrast the functions of financial institutions and financial markets
- To understand the conceptual framework of financial management and the role of the financial manager in maximizing the value of the firm.
- To understand the concepts of future value and present value of both an ordinary annuity and an annuity due, and find the present value of an annuity
- To apply the basic valuation model to bonds and explain the Yield To Maturity (YTM).
- To discuss the free cash flow evaluation model and the book value and price earnings ratio (P/E) multiple approaches.
- Specific attention is given to present value and capital budgeting; risk and asset pricing, financial analysis and forecasting; financial decisions and market efficiency; working capital; investment in capital assets.
Course Content
This course addresses the theory and practice of financial management--the generation and allocation of financial resources. It provides students with grounding in the basic concepts of finance, including the time value of money, the role of financial markets, asset valuation, capital budgeting decisions, portfolio theory, asset pricing, and the risk-return tradeoff.
Course Learning Outcomes
- Demonstrate a broad knowledge of the key concepts, technical terms and the main theories (TVM, fixed income securities valuation, risk and return) underpinning financial management.
- Exercise substantial personal actions and responsibility to obtain knowledge of professional responsibility in the field of financial management and act effectively with all the regulatory requirements.
- Use some quantitative techniques (TVM, PV, FV) that are needed to evaluate financial instruments.
- Use results of quantitative techniques to formulate financial decisions.
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