BUS482 CORPORATE FINANCE
| Course Code: | 3530482 |
| 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. YASEMİN M. UZGÖREN |
| Offered Semester: | Fall and Spring Semesters. |
Course Objectives
- To apply capital budgeting techniques (such as payback period, NPV, IRR) to evaluate and choose projects.
- To describe the procedures used to determine the weighted average cost of capital (WACC), the break points, and the weighted marginal cost of capital (WMCC) and its use with the investment opportunities schedules (IOS) to make financing/investment decisions.
- To discuss leverage (operating, financial, and total leverage), capital structure, breakeven analysis, the operating breakeven point, and the effect of changing costs on it.
- To explain the key factors involved in establishing dividend policies.
- To use various techniques of short-term financial managements such as inventory management, credit selection process, etc., to manage the working capital and its related tradeoff between profitability and risk.
Course Content
This course is an introduction to the financia lopera-tions in business corporations and the related concepts like risk, rate of return, valuation. Topics covered:Risk, Rates of Return, Time Value of Money, Bond and Stock Valuation, Cost of Capital, Basics of Capital
Budgeting, Cash Flow Estimation, Capital Structure and Leverage, Investment Banking and Securities Market.
Course Learning Outcomes
Upon successful completion of this course, you should be:
- Demonstrate and understand of concepts and theories related to corporate finance, such as capital budgeting, leverage, working capital, etc. and their importance in financial decision.
- Demonstrate an outline knowledge and understanding of research related to the latest issues regarding the corporate finance.
- Carry out investigation of problems and issues related to corporate finance in professional level.
- Use a range of approaches and techniques (such as time value of money, degree of financial, operating and total leverage, and financial ratios) to solve problems related to corporate finance.
- Use Excel software and programmed financial calculators to analyze and solve time value of money, degree of financial, operating and total leverage, and financial ratios.
- Critically analyze the benefits and limitations of the financial management techniques (such as working capital and current asset and liability management) and identify which parties are more relevant for specific situations.
- Compare and synthesize various capital budgeting techniques such as between IRR and NPV in ranking the order of the project’s acceptability.
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