BUSINESS, ECONOMIC AND FINANCIAL MODELLING WITH EXCEL

ECO2BMO

Not currently offered

Credit points: 15

Subject outline

Computer based spreadsheet modelling techniques are introduced for the analysis, planning and control of business operations. Techniques include forecasting using time series and causal methods, goal seeking and optimal decision making, capital budgeting and Monte Carlo simulation. The evaluation of firm performance through ratio analysis based on financial statements is covered. Three spreadsheet assignments are set for practising skills and techniques introduced in the subject. Familiarity with basic spreadsheet operations is assumed.

SchoolLa Trobe Business School

Credit points15

Subject Co-ordinatorJames Bugden

Available to Study Abroad StudentsYes

Subject year levelYear Level 2 - UG

Exchange StudentsYes

Subject particulars

Subject rules

Prerequisites Pre-Requisites: BUS1MIS or BUS1BUE or BUS1BAN, ECO1DSM or ECO1RIG or ECO1IMI or ECO1IMA

Co-requisitesN/A

Incompatible subjects Incompatible Subjects: BUS2BMO

Equivalent subjectsN/A

Special conditionsN/A

Readings

Resource TypeTitleResource RequirementAuthor and YearPublisher
ReadingsPrinciples of Macroeconomics;PrescribedStonecash, R., Gans, J., King, S., Mankiw, NCENGAGE LEARNING 5TH EDITION (2011)

Graduate capabilities & intended learning outcomes

01. Deriving Excel formulas for valuing a firm's equity, dependent on its sources of capital

Activities:
Lectures, tutorials, prescribed reading, class discussions
Related graduate capabilities and elements:
Writing (Writing)
Information Literacy (Information Literacy)
Inquiry/ Research (Inquiry/ Research)
Creative Problem-solving (Creative Problem-solving)
Critical Thinking (Critical Thinking)

02. Set up alternative financial forecasting systems (Percent sales method, smoothing methods, regression), and appreciate the strengths and weaknesses of the systems.

Activities:
Lectures, tutorials, prescribed reading, class discussions
Related graduate capabilities and elements:
Inquiry/ Research (Inquiry/ Research)
Information Literacy (Information Literacy)
Critical Thinking (Critical Thinking)
Creative Problem-solving (Creative Problem-solving)
Writing (Writing)

03. Use Excel spreadsheets for leverage analysis

Activities:
Lectures, tutorials, prescribed reading, class discussions
Related graduate capabilities and elements:
Information Literacy (Information Literacy)
Writing (Writing)
Creative Problem-solving (Creative Problem-solving)
Inquiry/ Research (Inquiry/ Research)
Critical Thinking (Critical Thinking)

04. Use Excel spreadsheets for automating the display of basic financial statements (Income statement, Balance sheet, Statement of cash flows), and financial statement analysis.

Activities:
Lectures, tutorials, prescribed reading, class discussion
Related graduate capabilities and elements:
Information Literacy (Information Literacy)
Critical Thinking (Critical Thinking)
Creative Problem-solving (Creative Problem-solving)
Inquiry/ Research (Inquiry/ Research)
Writing (Writing)

05. Use Excel spreadsheets for capital budgeting under risk and Monte Carlo simulation for determining and displaying the range of present values of firm returns allowing for uncertain parameters

Activities:
Lectures, tutorials, prescribed reading, class discussions
Related graduate capabilities and elements:
Information Literacy (Information Literacy)
Critical Thinking (Critical Thinking)
Creative Problem-solving (Creative Problem-solving)
Writing (Writing)
Inquiry/ Research (Inquiry/ Research)

06. Use 'Solver' in Excel for break-even analysis and for profit maximisation.

Activities:
Lectures, tutorials, prescribed reading, class discussions
Related graduate capabilities and elements:
Creative Problem-solving (Creative Problem-solving)
Information Literacy (Information Literacy)
Writing (Writing)
Critical Thinking (Critical Thinking)
Inquiry/ Research (Inquiry/ Research)

07. Using Excel spreadsheets for linear programming

Activities:
Lectures, tutorials, prescribed reading, class discussions
Related graduate capabilities and elements:
Inquiry/ Research (Inquiry/ Research)
Writing (Writing)
Critical Thinking (Critical Thinking)
Information Literacy (Information Literacy)
Creative Problem-solving (Creative Problem-solving)

Subject options

Select to view your study options…

Start date between: and    Key dates

Subject not currently offered - Subject options not available.