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Financial Modeling- Uses EXCEL 3/e


Supplements: Power point|

Simon Benninga

Too often, finance courses stop short of making a connection between textbook finance and the problems of real-world business. Financial Modeling bridges this gap between theory and practice by providing a nuts-and-bolts guide to solving common financial models with spreadsheets. Simon Benninga takes the reader step by step through each model, showing how it can be solved using Microsoft Excel. The long-awaited third edition of this standard text maintains the "cookbook" features and Excel dependence that have made the first and second editions so popular. It also offers significant new material, with new chapters covering such topics as bank valuation, the Black-Litterman approach to portfolio optimization, Monte Carlo methods and their applications to option pricing, and using array functions and formulas. Other chapters, including those on basic financial calculations, portfolio models, calculating the variance-covariance matrix, and generating random numbers, have been revised, with many offering substantially new and improved material. Other areas covered include financial statement modeling, leasing, standard portfolio problems, value at risk (VaR), real options, duration and immunization, and term structure modeling. Technical chapters treat such topics as data tables, matrices, the Gauss-Seidel method, and tips for using Excel. The last section of the text covers the Visual Basic for Applications (VBA) techniques needed for the book. The accompanying CD contains Excel worksheets and solutions to end-of-chapter exercises.

Table of Contents
Part I Corporate Finance Models
Ch1 Basic Financial Calculations
Ch2 Calculating the Cost of Capital
Ch3 Financial Statement Modeling
Ch4 Building a Financial Model: The Case of PPG Corporation
Ch5 Bank Valuation
Ch6 The Financial Analysis of Leasing
Ch7 The Financial Analysis of Leveraged Leases
Part II Portfolio Models
Ch8 Portfolio Models—Introduction
Ch9 Calculating Efficient Portfolios When There Are No Short-Sale Restrictions
Ch10 Calculating the Variance-Covariance Matrix
Ch11 Estimating Betas and the Security Market Line
Ch12 Effi cient Portfolios without Short Sales
Ch13 The Black-Litterman ApproaChto Portfolio Optimization
Ch14 Event Studies
Ch15 Value at Risk
Part III Option-Pricing Models
Ch16 An Introduction to Options
Ch17 The Binomial Option-Pricing Model
Ch18 The Lognormal Distribution
Ch19 The Black-Scholes Model
Ch20 Option Greeks
Ch21 Portfolio Insurance
Ch22 An Introduction of Monte Carlo Methods
Ch23 Using Monte Carlo Methods for Option Pricing
Ch24 Real Options
Part IV Bonds
Ch25 Duration
Ch26 Immunization Strategies
Ch27 Modeling the Term Structure
Ch28 Calculating Default-Adjusted Expected Bond Returns
Part V Technical Considerations
Ch29 Generating Random Numbers
Ch30 Data Tables
Ch31 Matrices
Ch32 The Gauss-Seidel Method
Ch33 Excel Functions
Ch34 Using Array Functions and Formulas
Ch35 Some Excel Hints
Part VI Introduction to Visual Basic for Applications
Ch36 User-Defi ned Functions with VBA
Ch37 Types and Loops
Ch38 Macros and User Interaction
Ch39 Arrays
Ch40 Objects and Add-Ins
Ch41 Information from the Web