Description
Financial Models in Excel can now be easily understood and adapted as finance professionals leaf through this textbook. In this guide, every finance practitioner will get to know the basic and advanced models in all the facets of corporate finance. They will also gain an in-depth understanding of the surrounding concepts on finance, including portfolio management, options, and bonds.
Financial Modeling now has its fourth edition and features a new section that explains the principles of Monte Carlo methods and their application to portfolio management and valuation. It also contains a new chapter dedicated to discussing term structure modeling. For the easy pickings of the concepts presented, illustrations of Excel spreadsheets are also provided.
About the Author
Simon Benninga taught at Tel-Aviv University, where he taught Finance and served as Director of the Sofaer International MBA program. Benninga wrote a series of compelling and indispensable resource materials on financial modeling.
Table of Contents
The book contains the following topics and contents:
I. Corporate Finance and Valuation
1. Basic Financial Calculation
2. Corporate Value Overview
3. Calculating the Weighted Average Cost of Capital (WACC)
4. Valuation Based on the Consolidated Statement of Cash Flows
5. Pro Forma Financial Statement Modeling
6. Building a Pro Forma Model: The Case of Caterpillar
7. Financial Analysis of Leasing
II. Portfolio Models
8. Portfolio Models – Introduction
9. Calculating Efficient Portfolios
10. Calculating the Variance-Covariance Matrix
11. Estimating Betas and the Security Market Line
12. Efficient Portfolios Without Short Sales
13. The Black-Litterman Approach to Portfolio Optimization
14. Event Studies
III. Valuation of Options
15. Introduction to Options
16. The Binomial Option Pricing Model
17. The Black-Scholes Model
18. Option Greeks
19. Real Options
IV. Valuing Bonds
20. Duration
21. Immunization Strategies
22. Modeling the Term Structure
23 Calculating Default-Adjusted Expected Bond Returns
V. Monte Carlo Methods
24. Generating and Using Random Numbers
25. An Introduction to Monte Carlo Methods
26. Simulating Stock Prices
27. Monte Carlo Simulations for Investments
28. Value at Risk (VaR)
29. Simulating Options and Option Strategies
30. Using Monte Carlo Methods for Option Pricing
VI Excel Techniques
31. Data Tables
32. Matrices
33. Excel Functions
34. Array Functions
35. Some Excel Hints
VII. Visual Basic for Applications (VBA)
36. User-Defined Functions with VBA
37. Variables and Arrays
38. Subroutines and User Interaction
39. Objects and Add-Ins
