Dokuz Eylul University

Dokuz Eylul University

Faculty of Business

Department of International Business and Trade

COURSEFIN 2002-BUSINESS FINANCE

SEMESTERSpring 2012

INSTRUCTORProf. Dr. Pnar EVRM MANDACI

E-MAILpinar.evrim@deu.edu.tr

CLASS SCHEDULETuesday, 9.00-11.35

OFFICE A 127

OFFICE HOURSThesday, 12.30-13.30

COURSE OBJECTIVES:

The objective of the course is to teach the foundation of Managerial Finance by introducing the basic concepts of modern theory and application of principles of corporate finance. Furthermore the course aims to equip the students in applying the theory of corporate finance in corporate financial decision-makings. METHOD OF TEACHING:

The material will be first lectured by me. Following the lectures, there will be some problem solving sessions for selected chapters. Each student is expected to read the material prior to the class as it will be much more beneficial to be prepared in advance for some pop quizzes that will be given throughout the semester. Detailed information regarding quizzes and exams are provided below in corresponding sections of this syllabus.

TEXTBOOK:Principles of Managerial Finance, by Lawrence J. Gitman (published by Addison Wesley 12nd Edition).

REFERENCE BOOKS AND JOURNALS: RELATED WEB PAGES:

Business Weekwww.businessweek.com

Fortunewww.fortune.com

Forbeswww.forbes.com

Financial Timeswww.ft.com, www.usa.ft.com

Wall Street Journalwww.wsj.com

Active Finanswww.activefinans.com

Aktel Para Dergisihttp://para.birnumara.com.tr

EXAMS:

There will be one midterm exam and a final throughout the course. There will be also some short quizzes. The main reason why there will be quizzes is to keep you up with the schedule. In other words, in this course, content of each chapter is built on the previous ones and are highly related. In this respect, when you take the quizzes, submit your assignments and most importantly attend the class on a regular basis, you will be almost ready for the midterm and final exams. The quizzes will take around 15-20 minutes and will be conducted at the beginning or end of the lectures. In addition, your lowest quiz score will be dropped and will not be counted towards your average quiz grade. If you miss a quiz, that will be considered as your lowest quiz score. More information will be provided about quizzes as we proceed in the semester.

Midterm and final exams will consist of multiple-choice questions and problems. The end-of-chapter problems and quizzes will be excellent sources to prepare for the midterm and final as the exams will be similar to these problems and quiz questions.

Final exam will be comprehensive. There will be a class period for final exam review to discuss the possible contents of the final exam as well as to solve some problems. You may bring a one-sided formula sheet during all exams.

In exams, you can use a calculator. Actually, I strongly recommend you to buy a sophisticated calculator for this course as you will definitely need it throughout the semester.

COURSE GRADING

Course grades will be based on a weighted composite of performance evaluations in several areas:

Mid-term Exam 30%

Quizzes20%

Final Exam 50%

COURSE OUTLINE:

CHAPTERTOPICPROBLEMS

Feb. 14,20121Introduction: The Role and Environment of Managerial Finance

Feb. 21,20122Financial Statements and Analysis

Feb. 28,20122

3Financial Statements and Analysis (contd) Cash Flow and Financial PlanningSelf Test 2-2, Problems 2-2, 2-6, 2-17, 2-21

Mar. 6,20123Cash Flow and Financial PlanningProblems 3-5, 3-6, 3-9,3-16 (QUIZ-1)

Mar. 6,20124Time Value of Money

Mar. 13,20124

Time Value of Money (contd)

Problems 4-4,4-5, 4-13,4-18,

4-19,4-23,4-35,4-42- 4-48

Mar. 20,20125Risk and Return

Mar. 27,20125Risk and Return (contd)Self-test 5-2 Problems 5-5, 5-12,5-13,,5-18 (QUIZ 2)

Apr.2-13Mid-term Exams

Apr. 17,20126Interest Rates and Bond Valuation

Apr. 24,20126

7Interest Rates and Bond Valuation (contd) Stock ValuationSelf Test 6-1, Problems 6-12,

6-15,6-16,6-24

May. 8,20127Stock Valuation (contd)Self Test 7-1,7-2, Problems 7-9,7-11,7-17,7-19 (QUIZ 3)

May. 15,20129Capital Budgeting Techniques

May.22,20129

11Capital Budgeting Techniques (contd)

The Cost of CapitalProblems 9-3, 9-7, 9-18 Problems 11-8, 11-15, 11-17 (QUIZ 4)

The above syllabus is tentative and can be changed by the instructor at any time.

The student is supposed to be aware of the facts written on the syllabus and should keep a track of changes in the course conduct throughout the semester.