BUS3030 Financial modelling , Unit Information Guide (Semester 1, 2006)

Chief Examiner Daisy Seng
Clayton : Daisy Seng

This unit is designed to introduce students to the practical application of financial modelling using modern computer tools. The subject covers both financial theory and modelling and includes computer modelling methodology, DCF analysis, risk measurement, spreadsheet modelling, capital budgeting, project management, optimal capital budgets, short-term planning and financing, accounts receivable and inventory, and statement analysis.


The core objectives of the unit are for students: 1. To understand the fundamental theories of finance. 2. To be able to apply finance theory to real problems in finance. 3. To feel comfortable with applying spreadsheets to the solution of financial problems. 4. To be able to formulate and solve financial problems.

Prerequisites There are no prerequisites for this unit.

Unit relationships BUS3030 is an elective unit in the Bachelor of Business Systems. There are no prerequisites for this unit. You may not study this unit and AFF2051 and AFW2051 in your degree.
Texts and software

Required text(s)

Bringham EF & Ehrhardt MC, Financial Management: Theory and Practice (11th Edition), Thomson Learning, 2005

Text books are available from the Monash University Book Shops. Availability from other suppliers cannot be assured. The Bookshop orders texts in specifically for this unit. You are advised to purchase your text book early.

Software requirements:

Microsoft Excel 2003

Hardware requirements:

On-campus students may use the facilities available in the computing labs. Information about computer use for students is available from the ITS Student Resource Guide in the Monash University Handbook.

Recommended reading

Library access You may need to access the Monash library either personally to be able to satisfactorily complete the subject.  Be sure to obtain a copy of the Library Guide, and if necessary, the instructions for remote access from the library website.
Study resources

Study resources for BUS3030 are:

available at the BUS3030 web site on MUSO, where lecture slides, tutorials and assignment specifications will be posted.

Structure and organisation



Study Guide

Key Dates

1 Introduction to Financial Modeling and Rules Table Methodology 1 March
2 Discounted Cash Flows (Time Value of Money) 8 March
3 Capital Budgeting - Basic 15 March
4 Cash Flow Estimation and other Topic in Capital Budgeting 22 March
5 Risk Analysis 29 March
6 Financial Statement Analysis 4 April
7 Capital Structure - Basic 12 April
8 Class Test 26 April
9 Capital Structure - Extensions 3 May
10 Current Asset Management 10 May
11 Short Term Financing 17 May
12 Working Capital Management - EOQ 24 May
13 Revision 31 May

The timetable for on-campus classes for this unit can be viewed in Allocate+




Class Test




Tutorial Participation


Final Examination


Assessment Policy

To pass this unit you must:

Achieve at least 50% of the written final examination, otherwise your final mark will be that of the final written examination. If you have passed your final written examination, your overall marks for this unit will that of this examination plus all other assessed components.

Your score for the unit will be calculated by:

If you achieve less than 50% of the final written examination, your final mark will be that of this examination.
Otherwise, final mark will be: Final examination (60%) + Assignment (20%) + Class Test (15%) + Tutorial Participation (5%)

Assessment Requirements


Due Date


Class Test 26 April 15 %
Assignment tba 20 %

Assignment specifications will be made available BUS3030 website on MUSO. Information about assignments will be published on the Unit's Notices Newsgroup.

Assignment Submission Methods

Assignments with the cover sheet attached will be submitted by electronic submission to MUSO.

Extensions and late submissions

Late submission of assignments

Late assignment will be accepted using the following sliding scale:

No of Days Late

Percentage of Grade











This policy is strict because comments or guidance will be given on assignments as they are returned, and sample solutions may also be published and distributed, after assignment marking or with the returned assignment. 


It is your responsibility to structure your study program around assignment deadlines, family, work and other commitments. Factors such as normal work pressures, vacations, etc. are seldom regarded as appropriate reasons for granting extensions. 

Requests for extensions must be made by email to the unit lecturer at least two days before the due date. You will be asked to forward original medical certificates in cases of illness, and may be asked to provide other forms of documentation where necessary. A copy of the email or other written communication of an extension must be attached to the assignment submission.

Grading of assessment

Assignments, and the unit, will be marked and allocated a grade according to the following scale:

HD High Distinction - very high levels of achievement, demonstrated knowledge and understanding, skills in application and high standards of work encompassing all aspects of the tasks.
In the 80+% range of marks for the assignment.
D Distinction - high levels of achievement, but not of the same standards. May have a weakness in one particular aspect, or overall standards may not be quite as high.
In the 70-79% range.
C Credit - sound pass displaying good knowledge or application skills, but some weaknesses in the quality, range or demonstration of understanding.
In the 60-69% range.
P Pass - acceptable standard, showing an adequate basic knowledge, understanding or skills, but with definite limitations on the extent of such understanding or application. Some parts may be incomplete.
In the 50-59% range.
N Not satisfactory -  failure to meet the basic requirements of the assessment.
Below 50%.

We will aim to have assignment results made available to you within two weeks after assignment receipt.

Feedback Feedback to you

You will receive feedback on your work and progress in this unit. This feedback may be provided through your participation in tutorials and class discussions, as well as through your assignment submissions. It may come in the form of individual advice, marks and comments, or it may be provided as comment or reflection targeted at the group. It may be provided through personal interactions, such as interviews and on-line forums, or through other mechanisms such as on-line self-tests and publication of grade distributions.

Feedback from you

You will be asked to provide feedback to the Faculty through a Unit Evaluation survey at the end of the semester. You may also be asked to complete surveys to help teaching staff improve the unit and unit delivery. Your input to such surveys is very important to the faculty and the teaching staff in maintaining relevant and high quality learning experiences for our students.

And if you are having problems

It is essential that you take action immediately if you realise that you have a problem with your study. The semester is short, so we can help you best if you let us know as soon as problems arise. Regardless of whether the problem is related directly to your progress in the unit, if it is likely to interfere with your progress you should discuss it with your lecturer or a Community Service counsellor as soon as possible.

Plagiarism and cheating

Plagiarism and cheating are regarded as very serious offences. In cases where cheating  has been confirmed, students have been severely penalised, from losing all marks for an assignment, to facing disciplinary action at the Faculty level. While we would wish that all our students adhere to sound ethical conduct and honesty, I will ask you to acquaint yourself with Student Rights and Responsibilities and the Faculty regulations that apply to students detected cheating as these will be applied in all detected cases.

In this University, cheating means seeking to obtain an unfair advantage in any examination or any other written or practical work to be submitted or completed by a student for assessment. It includes the use, or attempted use, of any means to gain an unfair advantage for any assessable work in the unit, where the means is contrary to the instructions for such work. 

When you submit an individual assessment item, such as a program, a report, an essay, assignment or other piece of work, under your name you are understood to be stating that this is your own work. If a submission is identical with, or similar to, someone else's work, an assumption of cheating may arise. If you are planning on working with another student, it is acceptable to undertake research together, and discuss problems, but it is not acceptable to jointly develop or share solutions unless this is specified by your lecturer. 

Intentionally providing students with your solutions to assignments is classified as "assisting to cheat" and students who do this may be subject to disciplinary action. You should take reasonable care that your solution is not accidentally or deliberately obtained by other students. For example, do not leave copies of your work in progress on the hard drives of shared computers, and do not show your work to other students. If you believe this may have happened, please be sure to contact your lecturer as soon as possible.

Cheating also includes taking into an examination any material contrary to the regulations, including any bilingual dictionary, whether or not with the intention of using it to obtain an advantage.

Plagiarism involves the false representation of another person's ideas, or findings, as your own by either copying material or paraphrasing without citing sources. It is both professional and ethical to reference clearly the ideas and information that you have used from another writer. If the source is not identified, then you have plagiarised work of the other author. Plagiarism is a form of dishonesty that is insulting to the reader and grossly unfair to your student colleagues.



Notices related to the unit during the semester will be placed on the Notices Newsgroup in the Unit Website. Check this regularly. Failure to read the Notices newsgroup is not regarded as grounds for special consideration.

Consultation Times

Posted on BUS3030 web site on MUSO

If direct communication with your unit adviser/lecturer or tutor outside of consultation periods is needed you may contact the lecturer and/or tutors at:

Ms Daisy Seng
Assistant Lecturer
Phone +61 3 990 59082

All email communication to you from your lecturer will occur through your Monash student email address. Please ensure that you read it regularly, or forward your email to your main address. Also check that your contact information registered with the University is up to date in My.Monash.

Last updated: Feb 27, 2006