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