BA4811 CORPORATE FINANCE
| Course Code: | 3124811 |
| 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: | Res.Dr. HATİCE GONCA BULUR |
| Offered Semester: | Fall and Spring Semesters. |
Course Objectives
As an intermediate finance course, BA 4811 is designed to provide an in-depth examination of some important corporate financial concepts by focusing on the techniques and methods involved in financial planning and decision making of the firm. In the first quarter of the course, we will concentrate on short and long term financial planning. We will talk about some additional considerations in capital budgeting in the second quarter of the course. In the third quarter of the course, we will focus on dividend and capital structure policies of the firm. In the fourth quarter of the course, we will deal with leasing vs buying decision and valuation of mergers and acquisitions. At the end of the term, students will have a very good understanding of these topics. Case studies will be used in providing students with hands on experience with the topics, after briefly covering relevant topics during the lectures. Students are expected to study the relevant concepts in depth before and during the preparation of the assigned cases that will be submitted as reports, and will be presented by selected groups in the classroom.
Course Content
Introduction to the financial operations 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, students should be able to:
Course Specific Skills:
Students who complete this course should be able to:
1. Understand and apply methods of long-term financing, and policies related to capital structure of a business
2. Understand cash and accounts receivables management and use appropriate methods in order to satisfy the needs
3. Develop appropriate dividend policy and understand the results of different policy choices
4. Understand the basic legal, accounting and tax aspects of mergers and acquisitions, as well as the synergy created by, and the premium to be paid for an acquisition.
5. Understand complex financing structures as financial leasing
6. Comprehend the effects of behavioral biases on financial decisions
Discipline Specific Skills:
By the end of this course the students will be able to:
7. Demonstrate broad knowledge of literature and concepts on corporate finance
8. Analyze corporate finance problems and interpret results
9. Develop skills in financial analysis, planning, and decision-making;
Personal and Key Skills:
10. Develop critical thinking on corporate finance issues
11. Develop problem solving skills
12. 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