FUNDAMENTALS OF FINANCE / HYBRID TRAINING

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  • FUNDAMENTALS OF FINANCE / HYBRID TRAINING

    The first 3 sessions of the training will be held on Zoom between 18:00-22:00, and the session on April 20 will be held between 13:00-17:00 at Sabancı Center - 4. Levent.

    This 4-day education will be an intense introduction to Fundamentals of Finance with an Investments flavor.

    The program will start with time value of money. We will learn to use present and future value operators and the power of compounding. Then, we will dive into annuity and perpetuity type cash flow streams. Finding the present and future values of these specific cash flow streams will be the necessary steps for valuation of assets. After a quick introduction to time value of money, we will learn to price fixed income securities. Bond valuation will heavily depend on present value operators. Right after learning how to price bonds, we will go through bond price sensitivity to various factors, such as maturity, interest rates and coupon payments.

    The program will continue with equity valuation. Differences between common and preferred stocks will be mentioned and preferred stocks will be priced. Participants will then learn constant growth models and super-normal growth models to price equities. Using accounting variables, the dividend payment policies of the firms will be discussed. Than the program will focus on statistical concepts such as expected value and volatility. Participants will then learn the relation between financial risk and return.

    Participants will be introduced to modern portfolio theory and they will learn to allocate capital between risk-free and risky assets. The program will focus on one of the most important topics in finance: Methods of finding discount rates through asset pricing models. We will continue by learning how to find the cost of capital of firms. Cost of capital is the essential concept in project evaluation.

    At the end of the program the participants will be introduced to derivative securities. Stock options will be emphasized and call and put options will be covered. Participants will be able to draw conclusions regarding the payoff and profit functions of these stock options. Next, certain option strategies such as protective put, covered call, straddle, strangle and others will be covered.

    Last day will be Q&A session.

    After these four days, participants will have a strong foundation of finance with a flavor of Investments. They will be ready to take advanced classes such as Risk Management, Investments and Asset Pricing.


  • DAY 1

    Bond Valuation

    Bond Valuation

    Bond Price Sensitivity

    Arbitrage

    Equity Valuation

    Dividend Policy

    DAY 2

    Present Value of Growth Opportunities

    Expected Value

    Volatility

    Risk and Return

    Modern Portfolio Theory

    Portfolio Allocation

    DAY 3

    Capital Asset Pricing Model

    Cost of Capital

    Basic Derivative Securities

    Stock Options

    Profit and Payoffs of Options

    Introduction to Options Strategies

    DAY 4

    Q&A