School: Business and Law

This unit information may be updated and amended immediately prior to semester. To ensure you have the correct outline, please check it again at the beginning of semester.

  • Unit Title

    Financial Modelling
  • Unit Code

    ECF3120
  • Year

    2017
  • Enrolment Period

    1
  • Version

    2
  • Credit Points

    15
  • Full Year Unit

    N
  • Mode of Delivery

    On Campus
  • Unit Coordinator

    Dr Lee Kian LIM

Description

This unit is designed to introduce the conceptual and practical aspects of financial modelling using Microsoft Excel spreadsheets. A spreadsheet solution is usually prepared for one's own use while a spreadsheet model is constructed with possible distribution in mind. A spreadsheet model is, therefore, a major step up from a spreadsheet solution and requires a much more disciplined approach with consideration given to architecture, user interface, error handling, and flexibility.

Prerequisite Rule

Students must pass 1 units from ECF2226

Learning Outcomes

On completion of this unit students should be able to:

  1. Analyse possible financial risk in project and share investment.
  2. Conduct various kinds of data analysis including charting, estimation and forecasting, optimisation, what-if analysis and simulation.
  3. Demonstrate proficiency in Excel spreadsheet manipulation andcontrol.
  4. Model financial statements models for the purpose of forecasting, valuation and what-if analysis.
  5. Plan, develop and debug a financial model.
  6. Value investment projects, shares, bonds, and companies.

Unit Content

  1. Spreadsheet modelling and model design.
  2. Excel basics: Statistical, mathematical, conditional, time, logical, search, and array functions, conditional formatting, data validation, charting and debugging error values.
  3. What-if analysis: Sensitivity and scenario analysis.
  4. Valuation of annuities, bonds and shares.
  5. Estimation and forecasting with regression analysis.
  6. Simulation.
  7. Optimisation: Linear, nonlinear and integer programming.
  8. Financial statements modelling and valuation of companies.
  9. Risk analysis.

Additional Learning Experience Information

On-campus students attend a three hour workshop which will be divided into 3 sections.

To start there will be revision of the take home material from the previous week. During this time students will need to explain their model and demonstrate how they have arrived at a solution. There will also be an opportunity for the students to assist others who may not have found a suitable solution to the problem at hand.

The next section of the class will involve explanation and discussion of the relevant topic for that week.

Finally students will begin to develop a model that will provide a solution to the problem raised earlier. Students will be shown a suggested outline which they will need to adapt accordingly.

By its very nature, problem solving using spreadsheets may take many different paths. When forecasting there may be more than one solution. Students will need to critically evaluate the problem and develop their own solution.

Assessment

GS1 GRADING SCHEMA 1 Used for standard coursework units

Students please note: The marks and grades received by students on assessments may be subject to further moderation. All marks and grades are to be considered provisional until endorsed by the relevant Board of Examiners.

ON CAMPUS
TypeDescriptionValue
ProjectSingle-workbook model15%
AssignmentAssignment25%
Examination ^Final Examination60%

^ Mandatory to Pass


Disability Standards for Education (Commonwealth 2005)

For the purposes of considering a request for Reasonable Adjustments under the Disability Standards for Education (Commonwealth 2005), inherent requirements for this subject are articulated in the Unit Description, Learning Outcomes and Assessment Requirements of this entry. The University is dedicated to provide support to those with special requirements. Further details on the support for students with disabilities or medical conditions can be found at the Access and Inclusion website.

Academic Misconduct

Edith Cowan University has firm rules governing academic misconduct and there are substantial penalties that can be applied to students who are found in breach of these rules. Academic misconduct includes, but is not limited to:

  • plagiarism;
  • unauthorised collaboration;
  • cheating in examinations;
  • theft of other students' work;

Additionally, any material submitted for assessment purposes must be work that has not been submitted previously, by any person, for any other unit at ECU or elsewhere.

The ECU rules and policies governing all academic activities, including misconduct, can be accessed through the ECU website.

ECF3120|2|1

School: Business and Law

This unit information may be updated and amended immediately prior to semester. To ensure you have the correct outline, please check it again at the beginning of semester.

  • Unit Title

    Financial Modelling
  • Unit Code

    ECF3120
  • Year

    2017
  • Enrolment Period

    2
  • Version

    2
  • Credit Points

    15
  • Full Year Unit

    N
  • Mode of Delivery

    On Campus
  • Unit Coordinator

    Dr Lee Kian LIM

Description

This unit is designed to introduce the conceptual and practical aspects of financial modelling using Microsoft Excel spreadsheets. A spreadsheet solution is usually prepared for one's own use while a spreadsheet model is constructed with possible distribution in mind. A spreadsheet model is, therefore, a major step up from a spreadsheet solution and requires a much more disciplined approach with consideration given to architecture, user interface, error handling, and flexibility.

Prerequisite Rule

Students must pass 1 units from ECF2226

Learning Outcomes

On completion of this unit students should be able to:

  1. Analyse possible financial risk in project and share investment.
  2. Conduct various kinds of data analysis including charting, estimation and forecasting, optimisation, what-if analysis and simulation.
  3. Demonstrate proficiency in Excel spreadsheet manipulation andcontrol.
  4. Model financial statements models for the purpose of forecasting, valuation and what-if analysis.
  5. Plan, develop and debug a financial model.
  6. Value investment projects, shares, bonds, and companies.

Unit Content

  1. Spreadsheet modelling and model design.
  2. Excel basics: Statistical, mathematical, conditional, time, logical, search, and array functions, conditional formatting, data validation, charting and debugging error values.
  3. What-if analysis: Sensitivity and scenario analysis.
  4. Valuation of annuities, bonds and shares.
  5. Estimation and forecasting with regression analysis.
  6. Simulation.
  7. Optimisation: Linear, nonlinear and integer programming.
  8. Financial statements modelling and valuation of companies.
  9. Risk analysis.

Additional Learning Experience Information

On-campus students attend a three hour workshop which will be divided into 3 sections.

To start there will be revision of the take home material from the previous week. During this time students will need to explain their model and demonstrate how they have arrived at a solution. There will also be an opportunity for the students to assist others who may not have found a suitable solution to the problem at hand.

The next section of the class will involve explanation and discussion of the relevant topic for that week.

Finally students will begin to develop a model that will provide a solution to the problem raised earlier. Students will be shown a suggested outline which they will need to adapt accordingly.

By its very nature, problem solving using spreadsheets may take many different paths. When forecasting there may be more than one solution. Students will need to critically evaluate the problem and develop their own solution.

Assessment

GS1 GRADING SCHEMA 1 Used for standard coursework units

Students please note: The marks and grades received by students on assessments may be subject to further moderation. All marks and grades are to be considered provisional until endorsed by the relevant Board of Examiners.

ON CAMPUS
TypeDescriptionValue
ProjectSingle-workbook model15%
AssignmentAssignment25%
Examination ^Final Examination60%

^ Mandatory to Pass

Core Reading(s)

  • W. (2016). Microsoft Excel 2016 data analysis and business modeling. Redmond: Microsoft Press.

Disability Standards for Education (Commonwealth 2005)

For the purposes of considering a request for Reasonable Adjustments under the Disability Standards for Education (Commonwealth 2005), inherent requirements for this subject are articulated in the Unit Description, Learning Outcomes and Assessment Requirements of this entry. The University is dedicated to provide support to those with special requirements. Further details on the support for students with disabilities or medical conditions can be found at the Access and Inclusion website.

Academic Misconduct

Edith Cowan University has firm rules governing academic misconduct and there are substantial penalties that can be applied to students who are found in breach of these rules. Academic misconduct includes, but is not limited to:

  • plagiarism;
  • unauthorised collaboration;
  • cheating in examinations;
  • theft of other students' work;

Additionally, any material submitted for assessment purposes must be work that has not been submitted previously, by any person, for any other unit at ECU or elsewhere.

The ECU rules and policies governing all academic activities, including misconduct, can be accessed through the ECU website.

ECF3120|2|2