BA2802 PRINCIPLES OF FINANCE
| Course Code: | 3122802 |
| 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: | Prof.Dr. ZEHRA NURAY GÜNER |
| Offered Semester: | Fall and Spring Semesters. |
Course Objectives
Students interested concentrating in the field of finance should view this course as a critical foundation for future studies and work in the areas of corporate finance, financial markets, international financial markets or other financial institutions. Students who do not pursue a career in a finance-related area will gain an understanding of responsibilities, concerns and methods of analysis used by corporate financial managers. This coursework will examine not only the principles and theories of finance but specifically how these techniques are applied in practice.
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.
Prerequisites: BA 1401, or BA 2405 or BA 2801
Course Learning Outcomes
Upon successful completion of this course, students should be able to:
Course Specific Skills:
Students who complete this course should be able to:
1. Analyze financial statements of companies, evaluate their performance
2. Calculate present and future values of different kinds of cash flows
3. Find the intrinsic value of bonds and stocks
4. Discuss advantages and disadvantages of alternative investment criteria
5. Explain the main relationships between risk and return
6. Identify and describe different types of risks inherent in each investment
7. Understand the importance of diversification in portfolio management and its impact on portfolio risk
8. Calculate the cost of capital for a firm and a project
9. Discuss different views on capital structure Discipline Specific Skills: By the end of this course the students will be able to:
10. Know the basic concepts of finance, including the time value of money, the role of financial markets, asset valuation, portfolio theory, asset pricing, and the risk-return tradeoff;
11. Develop skills in financial analysis, planning, and decision-making;
12. Have awareness for institutions and practices in business and finance.
Personal and Key Skills:
13. Develop problem solving skills
14. Develop writing and discussion 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