<meta http-equiv="refresh" content="0; URL=noscript.html"> METU | Course Syllabus

Course Learning Outcomes

Upon successful completion of this course, students should be able to:

Course Specific Skills:

1. Calculate the future and present value for annuities, net present value and internal rate of return by using functions and formulas in a spreadsheet

2. Make capital budgeting decisions. Learn how to challenge issues like sunk costs, taxes, different depreciation methods, different life spans of projects, mid-year discounting, multiple IRRs, and inflation

3. Understand how to choose discount rates for different investment opportunities

4. Calculate Free Cash Flows for valuation purposes

5. Know how to use DCF model for valuation

6.  Calculate risk and return for financial instruments

7. Form investment portfolios, calculate and draw efficient frontier

8. Learn to find optimum risky portfolio by employing Capital Asset Pricing Model (CAPM) and Security Market Line  (SML)

9. Measure the performance of the portfolio

10. Calculate cost of capital by using CAPM

11. Model the Term Structure of Interest Rates and price the bond by using real life data

12. Price stocks by using real life data

13.  Understand the capital structure of the firms and value them accordingly

Discipline Specific Skills:

Develop an understanding of:

14. how spreadsheet programs can be used to solve financial problems in general

15. how spreadsheet programs can be used when different financial instruments and firms are priced

Personal and Key Skills:

16 Develop problem solving skills

17. Develop spreadsheet program using skills