Corporate Financial Modelling
Since the emergence of spreadsheet softwares like Excel, spreadsheet models have been the dominant vehicles for finance professionals in the business world to implement their financial knowledge. This course teaches students how to build financial models in Excel. It provides step-by-step instructions so that students can build models themselves. It progresses from simple examples to practical, real-world applications. It spans nearly all quantitative models in corporate finance.
This course does everything in plain vanilla Excel. Plain vanilla Excel has the advantage of being a very intuitive, user-friendly environment that is accessible to all. It is fully capable of handling a wide range of applications, including quite sophisticated ones. All other features of Excel (graphing, built-in functions, Solver, etc.) are explained as they are used. The course does not use Excel VBA at all.
SECTION A: TIME VALUE OF MONEY
Single Cash Flow
Present Value
Future Value
Problems
Annuity
Present Value
Future Value
System of Four Annuity Variables
Problems
Net Present Value
Constant Discount Rate
General Discount Rate
Problems
Real and Inflation
Constant Discount Rate
General Discount Rate
Problems
Loan Amortization
Basics
Sensitivity Analysis
Problems
SECTION B: VALUATION
Bond Valuation
Basics
By Yield To Maturity
System Of Five Bond Variables
Dynamic Chart
Problems
SECTION C: CAPITAL BUDGETING
Project NPV
Basics
Forecasting Cash Flows
Working Capital
Sensitivity Analysis
Problems
Cost-Reducing Project
Basics
Sensitivity Analysis
Problems
Break-Even Analysis
Based On Accounting Profit
Based On NPV
Problems
Three Valuation Methods
Adjusted Present Value
Flows To Equity
Weighted Average Cost of Capital
Problems
SECTION D: FINANCIAL PLANNING
Corporate Financial Planning
Actual
Forecast
Cash Flow
Ratios
Sensitivity
Full-Scale Real Data
Problems
Du Pont System of Ratio Analysis
Basics
Problems
Life-Cycle Financial Planning
Basics
Problems