Principles of Finance/DSST Question

[sambert5150]

I just recently took and passed two CLEP exams - managment and Marketing. I am pondering taking the Principles of Finance. I am scheduled to take the class in the fall, but am conidering taking the DSST exam instead. What is the format of a DSST exam compared to a CLEP exam? Also would you advise taking the exam. The subject itself freaks me out. Thanks in advance

[snazzlefrag]

Originally Posted by sambert5150

I just recently took and passed two CLEP exams - managment and Marketing. I am pondering taking the Principles of Finance. I am scheduled to take the class in the fall, but am conidering taking the DSST exam instead. What is the format of a DSST exam compared to a CLEP exam? Also would you advise taking the exam. The subject itself freaks me out. Thanks in advance

Hi sambert,

Welcome to the board,

It's great to hear that you have already passed two CLEPs. Well done!

I don't think you have anything to lose by studying for, and taking, the DANTES Principles of Finance exam. At worst, you will lose about seventy bucks. At best, you will not have to take the class in the Fall.

Buy yourself a financial calculator. I used the Texas Instruments BAII+. I paid $30ish for it on Amazon.com, and it was PERFECT for this exam.

Work your way through Instantcert and learn all the core concepts. Learn how to use your calculator so that you won't have to even worry about the calculation-type questions.

This exam was not easy. It requires a lot of study and preparation. But it is TOTALLY doable. I was nervous about taking it too. But if you know the core conceptsw ell, know how to use your calc, and have good test-taking skills (obviously you do), you will very likely do well on the exam.

You have nothing to lose by going for it. Give it your best shot!

Best of luck,
Snazzlefrag

[snazzlefrag]

Originally Posted by sambert5150

What is the format of a DSST exam compared to a CLEP exam?

The DANTES exams are paper-based, and untimed. You answer each question by shading in a bubble. DANTES usually have about the same number of questions as the CLEPs (80-120 depending on the exam). With DANTES, you have to choose from FOUR answer options, instead of FIVE on the CLEP. So your odds of getting an answer correct are higher on the DANTES.

CLEPs are scored instantly, but DANTES scores are mailed to your home within 2-4 weeks after taking the exam.

Question difficulty is roughly the same. But because CLEPs are timed, they tend to ask questions that don't require a great deal of time to answer. So you may find that some of the DANTES questions are slightly more complex, but not necessarily 'more difficult'.

For any math-related exams, you are free to bring a non-graphing, non-programmable calculator in with you. With CLEPs you are limited to using their online software-based calculator.

Most CLEPs are pass/fail. But the DANTES are all graded (depending on your particular school's policy).

Other than that, there is no reason to choose one over the other. They both have their pros and cons. But you shouldn't feel intimidated by either. With the right amount of study, and good strong test-taking skills, it is possible to pass whichever exam you set your mind to.

Hope that helps,
Snazzlefrag

[sambert5150]

Thanks for all the info - One last question - did you have any background with finance before you studied for the exam and how much study time did it require. Again thanks for the very helpfull info.

[snazzlefrag]

Originally Posted by sambert5150

Thanks for all the info - One last question - did you have any background with finance before you studied for the exam and how much study time did it require. Again thanks for the very helpfull info.

sambert,

I had ABSOLUTELY no background in finance prior to taking this exam. I started entirely from scratch. So don't let lack of prior exposure be a distraction.

As far as how much study time? It took me two weeks of intensive daily study to feel adequately prepared for this one. BUT....it really depends on the person. There is NO right amount of study time that will work for everyone. I would simply suggest that you start studying and keep going until YOU feel adequately prepared. If it takes three days, great! If it takes three weeks, that's also great! Do whatever it takes for YOU to pass YOUR exam.

Best of luck
Snazzlefrag

[Ukrainian_American]

Originally Posted by sambert5150

I am pondering taking the Principles of Finance. I am scheduled to take the class in the fall, but am conidering taking the DSST exam instead. What is the format of a DSST exam compared to a CLEP exam? Also would you advise taking the exam. The subject itself freaks me out. Thanks in advance

The exam is not easy compared to Management and Marketing exams. The exam-taker is not limited in time... You should get a non-programmable financial calculator and learn how to do such calculations as TVM, IRR, Cash flow, NPV...

You should memorize and know how to use formulas for financial ratios, financial, operational, combined leverage, effective rate of interest, cost of stock, CAPM cost, cost of failing to take a trade discount, break-even quantity, DuPont system...

The questions are not easy and require a good knowledge of financial terms, concepts, relationship of financial concepts.

[snazzlefrag]

Originally Posted by Ukrainian_American

The exam is not easy compared to Management and Marketing exams. The exam-taker is not limited in time... You should get a non-programmable financial calculator and learn how to do such calculations as TVM, IRR, Cash flow, NPV...

You should memorize and know how to use formulas for financial ratios, financial, operational, combined leverage, effective rate of interest, cost of stock, CAPM cost, cost of failing to take a trade discount, break-even quantity, DuPont system...

The questions are not easy and require a good knowledge of financial terms, concepts, relationship of financial concepts.

Hi Ukrainian_American,

Welcome to the board.

Thank you for your excellent advice concerning the Principles of Finance exam. You hit the nail right on the head.

Principles of Finance is one of the hardest exams I have taken so far. Marketing and Management are definitely not even in the same league.

On a personal note: My father-in-law's family are Ukrainian too. His father immigrated here from either Kiev or Lvov (not sure which). A few years ago, my wife spent a month in the Ukraine visiting her distant relatives. Just a bit of useless personal trivia that nobody really needs to know, but I'm saying it anyway.