COURSE NAME: Corporate Finance

BAŞKENT UNIVERSITY

İŞLE 311 İŞLETME FİNANSI

COURSE OUTLINE

COURSE NAME: Corporate Finance

COURSE NO: İşle 311 31, 32, 33

INSTRUCTOR: Güray Küçükkocaoğlu Ph. D.

OFFICE : İİBF İşletme Bölümü B219 Bağlıca Kampüsü

(312) 234 10 10 / 1728

REQUIREDTEXT: Brealey, Myers & Marcus, Fundamentals of Corporate Finance,

McGraw Hill, Fifth International Edition.

REQUIREDCAL.: A financial or a scientific calculator is a necessity in this course.

Calculators must be used to work the exams, so be sure to get your

own calculator to the lectures and exams, and learn how to use it.

OPTIONAL: Dünya, The Wall Street Journal Europe, Ekonomist.

These publications are a good way to begin a lifelong pattern of professional reading. We will be discussing significant financial events as they occur.

COURSE OBJECTIVES:The course is intended to provide:

• An overview of basic concepts and principles of financial management, with particular emphasis on risk, rates of return, and valuation.

• An overview of contemporary financial events as they occur.

• The opportunity to use spreadsheets and business calculator in a financial management setting.

COURSE REQUIREMENTS:

Fundamentals of Corporate Finance textbook and anelectronic calculator are necessitiesinthis course.

Homeworks and cases should be handed in on the assigned date, late homeworks will not be accepted.

Students should bring their own calculator, pencils and erasers to the exams.

EXAMS:

There will be one midterm plus a comprehensive final exam.

Exam Dates will be posted in class

CASE STUDIES and HOMEWORK ASSIGNMENTS:

4 Case Studies will be given after the lectures of the related topics, they are worth 20 percent of your final grade so pay close attention to the questions.

End of chapter questions will be given as homework assignments although they are not counted towards your final grade, we strongly encourage you to solve these questions before taking exams.

GRADES: Grades will be based on the following weights:

Midterm Exam40%

Final Exam40%

Mini Cases20% (4 sets, 5% each)

CLASS SCHEDULE:

The following schedule gives the reading and homework assignments, and case studies. The lectures will stress the most important and/or most difficult material. Of course, your comprehension of the lecture will be enhanced if you read the chapters before covered in class.

LECTURES and TOPICS

Lecture 1 (September, 25, 26, 29)Intro.to Corp. Finance(Chp1, 2 and 3)

Mini Case 1 will be assigned in class: Due October, 2, 3, 6 and will be collected at your own lecture

Lecture 2 (October, 2, 3, 6) Time Value of Money(Chp 4)

End of Chapter Questions 12, 17, 21, 22, 24, 25, 30, 31, 37, 47, 63, 64

Lecture 3 (October, 9, 10, 13)Valuing Bonds (Chp 5)

End of Chapter Questions 9, 11, 17, 19, 20, 21, 25, 26

Lecture 4 (October, 16, 17, 20)Valuing Stocks (Chp 6)

End of Chapter Questions 11, 16, 17, 18, 21, 24, 26, 29, 31

Mini Case 2 Page 176: Due Oct. 30,31 and Nov. 3, cases will be collected at your own lecture

No classes on October, 23, 24, 27

Lecture 5 (October, 30,31 and November, 3)NPVand Investment Criteria (Chp 7)

End of Chapter Questions 13, 15, 19, 23, 25 and an in-class assignment

Lecture 6 (November, 6, 7, 10)Disc. Cash Flow Analysis (Chp 8)

End of Chapter Questions 2, 13, 14, 21, 23, 25, 28

Mini Case 3 Page 237: Due 4th week of November,cases will be collected on your Midterm date

Lecture 7 (November, 13, 14, 17)Project Analysis (Chp 9)

End of Chapter Questions 5, 6, 8, 14, 15, 18, 23, 24, 26

MIDTERMChps 1 thru 9 at the 4th week of November, exact date of exam will be posted in class

Lecture 8 (November 27, 28, December 1)Int.Risk,Ret., and Cost of Capital (Chp 10)

End of Chapter Questions 14, 15, 16, 17, 18 and an in-class assignment

Lecture 9 (December 4, 5, 8)Risk, Return and Capital Budgeting (Chp 11)

End of Chapter Questions 6, 8, 11, 17, 18, 26, 27, 29

Lecture 10 (December 11, 12, 15)The Weighted Ave. Cost of Capital (Chp 12)

End of Chapter Questions 1, 2, 7, 12, 13, 14, 16, 17, 19

Mini Case 4 Page 344: Due December 25, 26, 29, cases will be collected at your own lecture

Lecture 11 (December 18, 19, 22)Debt Policy (Chp 15)

End of Chapter Questions 14, 15, 16, 19, 23, 24, 25, 26, 27, 30, 31

Lecture 12 (December 25, 26, 29)Payout Policy (Chp 16)

End of Chapter Questions 8, 9, 10, 12, 14, 15, 16

Lecture 13 (January 5 at 16:00)No classes on January 1st and 3rd, Final lecture of the course in January 5 at 16:00 will cover the topics that we have studied through-out the semester.