Financial modeling

Part I: Corporate Finance and Valuation 1: Basic Financial Calculations-- 2: Corporate Valuation 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-- Part 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-- Part 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-- Part IV: Valuing Bonds-- 20: Duration-- 21: Immunization Strategies-- 22: Modeling the Term Structure-- 23: Calculating Default-Adjusted Expected Bond Returns-- Part 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-- Part VI: Excel Techniques-- 31: Data Tables-- 32: Matrices-- 33: Excel Functions-- 34: Array Functions-- 35: Some Excel Hints-- Part 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--

A substantially revised edition of a bestselling text combining explanation and implementation using Excel; for classroom use or as a reference for finance practitioners. ; Financial Modeling is now the standard text for explaining the implementation of financial models in Excel. This long-awaited fourth edition maintains the "cookbook" features and Excel dependence that have made the previous editions so popular. As in previous editions, basic and advanced models in the areas of corporate finance, portfolio management, options, and bonds are explained with detailed Excel spreadsheets. Sections on technical aspects of Excel and on the use of Visual Basic for Applications (VBA) round out the book to make Financial Modeling a complete guide for the financial modeler. ; The new edition of Financial Modeling includes a number of innovations. A new section explains the principles of Monte Carlo methods and their application to portfolio management and exotic option valuation. A new chapter discusses term structure modeling, with special emphasis on the Nelson-Siegel model. The discussion of corporate valuation using pro forma models has been rounded out with the introduction of a new, simple model for corporate valuation based on accounting data and a minimal number of valuation parameters.