Information Package / Course Catalogue
Cost of Capital
Course Code: MHY542
Course Type: Area Elective
Couse Group: Second Cycle (Master's Degree)
Education Language: Turkish
Work Placement: N/A
Theory: 3
Prt.: 0
Credit: 3
Lab: 0
ECTS: 5
Objectives of the Course

The aim of this course is to provide an overview of concepts and analytical techniques related to corporate finance including ratio analyses, financial planning, valuation, capital budgeting and cost of capital for financial decision making.

Course Content

Students will be able to understand the relationship between risk and return, to understand long-term investment decisions, cost of capital, structure of capital issues, dividend policies and business failures.

Name of Lecturer(s)
Learning Outcomes
1.Describe the environment of business in order to understand the role of corporate finance.
2.Interpret the financial performance of a company by using the ratio analysis.
3.Construct pro forma balance sheet and income statement for long-term financial planning.
4.Identify short-term financial management and net working capital in order to understand the relationship
5.Apply the basic valuation models of stock and bonds for debt and equity financing.
Recommended or Required Reading
1.Gitman, Principals of Managerial Finance, 13. Edition, Pearson International Edition.
Weekly Detailed Course Contents
Week 1 - Theoretical
Introduction to Corporate Finance
Week 2 - Theoretical
Financial Statements and Analysis
Week 3 - Theoretical
Cash Flow and Financial Planning
Week 4 - Theoretical
Working Capital Management
Week 5 - Theoretical
Time Value of Money
Week 6 - Theoretical
Risk and Return
Week 7 - Theoretical
Bond and Stock Valuation
Week 8 - Intermediate Exam
Midterm Exam
Week 9 - Theoretical
Capital Budgeting Techniques
Week 10 - Theoretical
Capital Budgeting Cash Flows
Week 11 - Theoretical
Cost of Capital
Week 12 - Theoretical
General Evaluation
Week 13 - Theoretical
General Evaluation
Week 14 - Final Exam
Final Exam
Assessment Methods and Criteria
Type of AssessmentCountPercent
Midterm Examination1%40
Final Examination1%60
Workload Calculation
ActivitiesCountPreparationTimeTotal Work Load (hours)
Lecture - Theory142370
Individual Work72228
Midterm Examination110111
Final Examination115116
TOTAL WORKLOAD (hours)125
Contribution of Learning Outcomes to Programme Outcomes
PÇ-1
PÇ-2
PÇ-3
PÇ-4
PÇ-5
PÇ-6
PÇ-7
PÇ-8
PÇ-9
OÇ-1
4
4
4
2
5
5
5
5
5
OÇ-2
3
3
3
3
3
3
3
3
3
OÇ-3
4
4
4
3
3
3
4
4
4
OÇ-4
4
4
4
4
3
3
3
3
4
OÇ-5
3
3
3
3
3
5
4
4
4
Adnan Menderes University - Information Package / Course Catalogue
2026