Financial modeling

This book is the standard text for explaining the implementation of financial models in Excel. As in previous editions, this fourth edition maintains the "cookbook" features and Excel dependence; it explains basic and advanced models in the areas of corporate finance, portfolio management, options, and bonds with detailed Excel spreadsheets. It also includes: a new section explaining the principles of Monte Carlo methods and their application to portfolio management and exotic option valuation; a new chapter discussing term structure modeling, with special emphasis on the Nelson-Siegel model; and a discussion of corporate valuation using pro forma models with the introduction of a new, simple model for corporate valuation based on accounting data and a minimal number of valuation parameters. --

"Uses Excel"--Cover.

0.1. Data Tables -- 0.2. What Is Getformula? -- 0.3. How to Put Getformula into Your Excel Notebook -- 0.4. Saving the Excel Workbook: Windows -- 0.5. Saving the Excel Workbook: Mac -- 0.6. Do You Have to Put Getformula into Each Excel Workbook? -- 0.7.A Shortcut to Use Getformula -- 0.8. Recording Getformula: The Windows Case -- 0.9. Recording Getformula: The Mac Case -- 1. Basic Financial Calculations -- 1.1. Overview -- 1.2. Present Value and Net Present Value -- 1.3. The Internal Rate of Return (IRR) and Loan Tables -- 1.4. Multiple Internal Rates of Return -- 1.5. Flat Payment Schedules -- 1.6. Future Values and Applications -- 1.7.A Pension Problem-Complicating the Future Value Problem -- 1.8. Continuous Compounding -- 1.9. Discounting Using Dated Cash Flows -- Exercises -- 2. Corporate Valuation Overview -- 2.1. Overview -- 2.2. Four Methods to Compute Enterprise Value (EV).

Note continued: 2.3. Using Accounting Book Values to Value a Company: The Firm's Accounting Enterprise Value -- 2.4. The Efficient Markets Approach to Corporate Valuation -- 2.5. Enterprise Value (EV) as the Present Value of the Free Cash Flows: DCF "Top Down" Valuation -- 2.6. Free Cash Flows Based on…