ANTALYA INTERNATIONAL UNIVERSITY

Fall 2014
ANTALYA INTERNATIONAL UNIVERSITY
INTRODUCTION TO CORPORATE FINANCE
(BUS 221)
T-F 3:30– 4:50 p.m. (AG- 08 – Finance Lab)
CONTACT INFORMATION
Hilmi Songur, Ph.D.
Department of Business
Antalya International University
Office: A2-71
[email protected]
Office Hours: T-F 1.30-2.30.p.m. at room A2-71.
You can reach me via e-mail. I will reply to your e-mail in 24 hours unless I am at a location where I do
not have internet access.
OBJECTIVES

This course introduces corporate finance to students. The primary objective is to provide the
student with the tools to understand and solve the basic financial problems confronting business
today. The topics covered include the time value of money, valuation of assets, capital budgeting
techniques, capital structure theory, and dividend policy. The application of the topics to
international markets will be made whenever possible. After successfully completing this course,
students should at a minimum:
o understand and apply basic time value methodology to general valuation and integrated
cash flow applications;
o understand and apply the conceptual relationship between the expected return and the
relevant risk of individual assets and portfolios of assets;
o understand and apply the traditional evaluation techniques of capital budgeting analysis
in business and personal capital investments;
o understand the concept of cost of capital and financial leverage and apply those concepts
in the determination of the optimal capital structure; and,
o understand the current financial environment in which business decisions are made.
COURSE MATERIALS :
Required Text:
 Corporate Finance: Core Principles & Applications, 3rd Edition, by Ross, Westerfield, Jaffe and
Jordan. ISBN-13 9780073530680

Course Notes will be posted on the Blackboard for download

Financial Calculator: You must have a financial or business calculator to get through the course.
Many of the exam problems involve complex arithmetic and financial calculations—and a
financial calculator is necessary to solve them. Your calculator should be able to compute the net
present value (NPV) and the internal rate of return (IRR). I recommend Texas Instruments BA II
Plus. You may use HP-10BII if you prefer. It works fine, too. I will use Texas Instruments BA II
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Fall 2014
Plus in class and explain how to work various problems with it, so you can follow lectures most
easily if you use the same one. However, everything in this class can be done with either one. As
you will soon see, the ability to use a financial calculator is critical to success in the class. You
are responsible for learning how to operate your financial calculator—and it is crucial that you
are familiar with your calculator. Make sure that you bring your calculator to every class.
Students may not share calculators on exams. Please be sure to check your batteries before
exams.

Financial Blogs and web sites to visit: finance.yahoo.com, moneycentral.msn.com
Suggested further readings:

Brealey, R., S. Myers and F. Allen. Principles of Corporate Finance. 11e. 2014 ISBN:
0078034760

Copeland, T., J. Weston and K. Shastri. Financial Theory and Corporate Policy. 4e. ISBN13: 978-0321127211
BEING AN ACTIVE, INTENTIONAL P ARTICIPANT
I want you to come to class with as an intentional student who is aware of why he/she is studying this topic.
Make sure that you put every effort to understand how you learn best, the value of what you learned, and how
that can be applied in settings other than the class activities. An intentional, self-directed learner makes
connections between knowledge and skills learned in this class and the workplace. Intentional learners thrive
in a changing world, because they know how to learn and bring together different sources of information and
their experiences to make effective decisions.
ONLINE RESOURCES :
The use of Blackboard will help you learn to use instructional technology in your learning. This is important,
because it is very likely that you will take other online courses in the future, if you have not already done so.
Blackboard contains an email tool you can use to send the instructor emails about the course, or email each
other.

The Discussion Board is a tool to:
o Help you communicate outside of class with your classmates; Post a question to the rest of the
class; Discuss class related issues ; Complete online course work; But…it’s not for frivolous
exchanges, stick to class-related issues. You can go to Twitter or Facebook for the other stuff.
P ROFESSIONAL CONDUCT
During this course, deal with the material and your colleagues as a professional. Consider class a regular
meeting with your team of professionals and a great opportunity to exchange new ideas. Attending team
meetings on time, being well prepared and participating in the team discussions are key parts of professional
behavior. Make a commitment to your team members:
 Come to the meeting prepared by having completed your assignments prior to class.
 Meet your deadlines.
 Participate fully in all class activities and collaborate closely with your teammates.
 Be actively present in class: stay focused on the learning activities.
 Inform your teammates when you cannot attend a meeting, or you run into difficulties completing your
tasks. They will help you, if you are genuine and honest.
 Be courteous and honest in communicating with others that shows respect and sensitivity to cultural,
religious, sexual, and other individual differences among all class members.
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Fall 2014


Provide constructive feedback that helps your teammates, class members, and the instructor improve
their performance, and appreciate it when they provide you with the same.
Do not fester over little things, let go and move on, you have important goals to achieve.
CIVIL DISCUSSIONS AND LEARNING
Respectful discussions are at the center of learning. Good discussions provide answers and raise questions that
make us want to find out more. The team discussions in class are about the exchange of ideas. To understand
your teammates’ ideas and reasoning you will have to listen carefully. That means only one person should
speak at one time. If you disagree, state that you disagree with the idea, tell the person your reasons and
provide evidence to support your point of view. A vigorous give-and-take discussion that focuses on ideas
will help you learn much from each other. A focus on ideas does not attack the person; it is about exchanging
and challenging thoughts and opinions. It is important that you become comfortable with such discussions,
because of their learning potential. If you encounter a lack of civility and disrespect in discussions and you do
not feel comfortable addressing the person, do not hesitate to see me. We will find a way to address it and
improve the situation.
USE OF STUDY GUIDES
The Study Guides for each Chapter are on Blackboard under “Course Content.” They help you concentrate on
key concepts in each chapter and focus your study efforts through a set of questions, so you do not spend your
time on material that is not critical. Concepts are explained slightly differently from the textbook and may help
you understand the material better. Use them alongside the textbook.
THE TYPE OF THINKING YOU NEED TO STRIVE FOR
During your studies at AIU you should work hard to develop the capability to think relativistically. In other
words, when you are asked for your opinion, make sure you have done your research and understand the
evidence and support for various other opinions before you develop a position or a point of view on issues. In
this class you will be asked to present evidence for your positions and conclusions on a regular basis.
Types of Thinking
Dualism
Multiplism
Relativism
Description
A person believes that information is correct or incorrect, right or wrong, and that
there are fixed ways of looking at the world. S/he relies on authorities to determine
how and what to think. Has difficulty thinking independently, generating
alternative perspectives, and being able to analyze information
A person has the ability to see that uncertainties, unknowns, and doubts exist and
that these naturally lead to different points of view. S/he has difficulty developing
reasons why some opinions are better than others. Leads to considering alternative
points of view, but without an ability to formulate and employ criteria for deciding
consistently among them.
A person recognizes that points of view differ in quality and that good ones are
supported by evidence and other criteria. S/he uses discipline-related, legal, moral,
religious, and other criteria to determine which opinions can be accepted, rejected,
or need additional analysis. This approach leads to independent thinking, analyzing
information, and using appropriate criteria to draw conclusions.
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Fall 2014
HOW DO YOU EARN YOUR GRADE?
Exams (3)
25% each
2.5% each
Quizzes (10)
Total


75%
25%
100%
Three exams will be given for the class, two mid-term exams and one final exam. No make-up exams
are given. The exams will cover material over a specified number of chapters (see course schedule for
details).
Quizzes will be given online. You can take the quiz two times. Quizzes will be available on the day
the chapter is presented in class and stay available approximately 1 week (7 days). Details will be
posted on the class BlackBoard site. Quizzes will be given for chapters: 2, 4, 5, 6, 8, 10,11, 12, 14,
and 15.
COURSE GRADE DETERMINATION
93% and above
88% - 92%
84 - 87%
80% - 83%
76% - 79%
71% - 75%
67% - 70%
63% - 67%
59% - 63%
56% - 59%
< 56%
A
AB+
B
BC+
C
CD+
D
F
COURSE POLICIES AND RULES



Attendance is important, given the course’s condensed format. If at all possible, please inform me
ahead of time if you are going to miss a class or miss more than one hour of a class meeting.
Cell Phones are OFF!
The Antalya International University prides itself on its standards of academic excellence. In all
matters of intellectual pursuit, AIU faculty and students must strive to achieve based on the quality of
the worked produced by the individual. In the classroom and in all other academic activities, students
are expected to uphold the highest standards of academic integrity. Any form of scholastic
dishonesty is an affront to the pursuit of knowledge and jeopardizes the quality of the degree awarded
to all graduates of AIU. Any student who commits an act of scholastic dishonesty is subject to
discipline. Scholastic dishonesty includes, but is not limited to, cheating, plagiarism, collusion, the
submission for credit of any work or materials that are attributable in whole or in part to another
person, any act designed to give unfair advantage to a student or the attempt to commit such acts.
Proven violations of the detailed regulations may result in sanctions ranging from disciplinary
probation, to failing grades on the work in question, to failing grades in the course, to suspension or
dismissal, among others.
INSTRUCTOR`S BIO

Dr. Hilmi Songur is an Assistant Professor of Finance and has joined the faculty at AIU in August 2014.
His B.S. in Economics is from the Kadir Has University, MBA is from the Ball State University and
Ph.D. is from the University of Texas at El Paso. Dr. Songur has taught courses in Corporate Finance,
Financial Analysis, Investments, and Principles of Economics. He has presented his research at many
prestigious conferences including FMA, EFA, and SFA Annual Meetings.
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Fall 2014
COURSE SCHEDULE*
Chapter
Course Content
Dates
1
Introduction to Corporate Finance
Sept. 16-19
2
Financial Statements and Cash Flow
Sept. 23-26
3
Financial Statements Analysis and Financial Models
4
Discounted Cash Flow Valuation
Oct 10-14
5
Interest Rates and Bond Valuation
Oct 21-24
Midterm 1 – Chapters 1-5
Sept. 30 – Oct 03
Oct. 28
6
Stock Valuation
7
Net Present Value and Other Investment Rules
8
Making Capital Investment Decisions
9
Risk Analysis, Real Options, and Capital Budgeting
Nov 18-25
Midterm 2 - Chapters 6-9
Nov. 28
Oct 31-Nov 4
Nov 7-11
Nov 14
10
Risk and Return Lessons from Market History
11
Return and Risk: The Capital Asset Pricing Model (CAPM)
12
Risk, Cost of Capital, and Valuation
14
Capital Structure: Basic Concepts
Dec 19
15
Capital Structure: Limits to the Use of Debt
DEC 23
16
Dividends and Other Payouts
DEC 26
Final Exam - Chapters 10-16
*The Syllabus is tentative and subject to change at any time during the semester.
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Dec 2
Dec 5-9
Dec 12-16
TBA