Financial Modelling

Course aim

To refine students’ understanding of spreadsheet design and construction, and to develop their abilities to critically evaluate the roles, uses and limitations of spreadsheet-based modelling techniques in finance and investment decision-making.

Course content

The role of numerical solutions, databases and simulation models in financial and investment analysis. Excel and alternative spreadsheet models in the construction of financial and simulation models. Spreadsheets and spreadsheet limitations in the maintenance and modification of databases for financial and business analysis. Important financial models in: corporate finance; financial statement simulation; portfolio and fund analysis and performance measurement; models of leasing and property valuation; option valuation; and interest rate risk analysis. The implementation of spreadsheet-based models in the analysis of financial problems. Limitations of and extensions to the simulation, valuation and financial modelling frameworks most commonly used in financial and investment analysis.

Textbook(s)

Benninga S 2014, Financial Modelling, 4th edn, The MIT Press, USA

Prerequisite(s)

Common to all relevant programs
Subject Area & Catalogue Number	Course Name
BANK 3004	Portfolio and Fund Management

Corequisite(s)

Common to all relevant programs
Subject Area & Catalogue Number	Course Name
BANK 3009	Corporate Valuation and Risk Management

Teaching method

Component	Duration
INTERNAL, CITY WEST
Preparatory	1 x 1 week
Lecture	2 hours x 10 weeks
Tutorial	1 hour x 10 weeks
INTERNAL, CITY WEST (INTENSIVE)
Seminar	30 hours x N/A

Note: These components may or may not be scheduled in every study period. Please refer to the timetable for further details.

Assessment

Assignment

Fees

EFTSL*: 0.125
Commonwealth Supported program (Band 4C)
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Fee-paying program for domestic and international students
International students and students undertaking this course as part of a postgraduate fee paying program must refer to the relevant program home page to determine the cost for undertaking this course.

Non-award enrolment
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* Equivalent Full Time Study Load. Please note: all EFTSL values are published and calculated at ten decimal places. Values are displayed to three decimal places for ease of interpretation.