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.

School: La Trobe Business School (Pre 2022)

Credit points: 15

Subject Co-ordinator: Greg Jamieson

Available to Study Abroad/Exchange Students: Yes

Subject year level: Year Level 2 - UG

Available as Elective: Yes

Learning Activities: Lectures, tutorials, prescribed reading, class discussions

Capstone subject: No

Subject particulars

Subject rules

Prerequisites: BUS1BUE OR ECO1IMA OR ECO1IMI OR BUS1MIS OR ECO1RIG OR ECO1DSM OR BUS1BAN

Co-requisites: N/A

Incompatible subjects: BUS2BMO

Equivalent subjects: N/A

Quota Management Strategy: N/A

Quota-conditions or rules: N/A

Special conditions: N/A

Minimum credit point requirement: N/A

Assumed knowledge: N/A

Learning resources

Principles of Macroeconomics

Resource Type: Book

Resource Requirement: Prescribed

Author: Stonecash, R., Gans, J., King, S., Mankiw, N

Year: 2011

Edition/Volume: 5TH EDITION

Publisher: CENGAGE LEARNING

ISBN: 9780170382656

Chapter/article title: N/A

Chapter/issue: N/A

URL: N/A

Other description: N/A

Source location: N/A

Career Ready

Career-focused: No

Work-based learning: No

Self sourced or Uni sourced: N/A

Entire subject or partial subject: N/A

Total hours/days required: N/A

Location of WBL activity (region): N/A

WBL addtional requirements: N/A

Graduate capabilities & intended learning outcomes

Graduate Capabilities

COMMUNICATION - Communicating and Influencing
INQUIRY AND ANALYSIS - Creativity and Innovation
INQUIRY AND ANALYSIS - Critical Thinking and Problem Solving
INQUIRY AND ANALYSIS - Research and Evidence-Based Inquiry

Intended Learning Outcomes

01. Deriving Excel formulas for valuing a firm's equity, dependent on its sources of capital
02. Set up alternative financial forecasting systems (Percent sales method, smoothing methods, regression), and appreciate the strengths and weaknesses of the systems.
03. Use Excel spreadsheets for leverage analysis
04. Use Excel spreadsheets for automating the display of basic financial statements (Income statement, Balance sheet, Statement of cash flows), and financial statement analysis.
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
06. Use 'Solver' in Excel for break-even analysis and for profit maximisation.
07. Using Excel spreadsheets for linear programming
Subject not currently offered - Subject options not available.