Third Year Finance Elective

Really sorry for the late reply on this, work has been quite busy in the lead up to Christmas. I had another user ask a similar question in DMs so ill paste that here, if it doesnt completely answer your questions please dont hesitate to ask for further info.

The concepts are relatively straight forward, no more difficult than say corporate finance/investments. For the first 8 weeks (if the course hasn't changed) it is relatively easy (IPO/Start Up valuations) but does get a bit more difficult and abstract in the final 4 weeks (valuing the opportunity cost to an entrepreneur who wants to start a business).

From what I remember (I did it in Sem 1 2016), it had two large-ish assignments where you worked in pairs, one was valuing an IPO being released on the Singapore stock exchange and the other a traditional start-up in Australia. These assignments were very,very excel heavy and were in essence looking at the profit-loss statements/balance sheets, forecasting future statements using growth rates based on researched industry averages and qualitative data and then assessing what the company was worth and thus how much shares would potentially be worth. These assignments were relatively involved but definitely doable, I remember vaguely we were able to finish each within a solid 3-4 days of work.

The exam was relatively hard in comparison to the assignments from what I remember but not unreasonable, it focused less on valuation and more on the last parts of the semester which were a bit more abstract. I wouldn't say the subject was more demanding than say corp fi/investments but it definitely wasn't a bludge subject or a guaranteed WAM booster. In a nutshell, it was very excel heavy, I would say definitely a mix between and quant and qual but the quantitative stuff is pretty basic (like just applying growth rates, forecasting) but it was spreadsheet heavy. I definitely think it was the most interesting of all the finance subjects though because you were applying what you had learnt in previous semesters/within the subject to value companies, in a way analogous to how you would in industry. I didn't end up going down the finance route (did a Masters in Eng and work in engineering now) but the subject definitely solidified my excel skills and is something I recommend to friends who want to do finance electives. The lecturer (Andre Gygax, hopefully it hasn't changed) has a big part in making it a very interesting and practical subject, he also has a very successful background outside of university.

I may still have my notes and what not for the subject on an old computer and would be happy to send them across to you if it'd help your decision.

Merry Christmas rainbowkueh!

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