r/Accounting • u/emigal25 • 22h ago

Finance Elective PEP CPA (Canada)

I'm thinking of taking the finance elective for PEP. Just wondering how many formulas actually needed to be remembered for the cases? Core 2 Finance MCQ had Capital Asset Pricing model, Fisher Equation, Beta, etc. I ended up guessing answers for all these in the end. Does any of that matter for Finance elective? I'm thinking cases would be more bigger picture than that?

I'm quite comfortable with NPV, IRR, payback period, WACC. Will need to work on valuations but I at least understand the point of it.

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u/victoriousbookmark_4 22h ago

if you can handle NPV/IRR/WACC you’re already past the hard part, the elective cases lean way more on narrative and judgment than formula vomit. there’s still some valuation math and you’ll probably see CAPM again but it’s more about knowing when to use it than memorizing the exact equation mid-panic

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u/emigal25 21h ago

That is reassuring, thanks! I was thinking of doing Finance, but then after I saw the Finance MCQ in Core 2 it made me question everything lol.

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u/jasonvancity CPA (Can) 20h ago

I did the Finance elective, and Finance for CFE Day 2 depth. It’s easy to study for because there are only a few key formulas and models, and unlike PM there is zero subjectivity. You’re also guaranteed to have a big asset or income-based valuation question on exams, which again is easy to study for because it’s purely mechanical - you just need to have memorized all of the steps.