Financial Modeling : An Introductory Guide to Excel and VBA Applications in Finance.

Intro -- Global Financial Markets -- Preface -- Contents -- About the Authors -- List of Figures -- List of abbreviations and symbols -- List of Synonyms -- 1 Introduction -- 1 How Can Managers Assure that the Decision Papers which They Receive Are Not Already Flawed and Faulty Decisions Are Reached as a Consequence? -- 2 How Can Applied Tasks Be Modeled Clearly and in a Structured Manner? -- 3 How Can Macros Be Used in the Modeling Process? -- 4 How Can Financial Modeling Be Used in Applied Work in Finance? -- 5 How to Create Financial Models for Investment and Financing? -- 6 How to Create Financial Models for Corporate Finance? -- 7 How to Create Financial Models for Portfolio Management? -- 8 How to Create Financial Models in the Field of Derivatives? -- 9 Who Needs a Deep Understanding of Financial Modeling? -- 10 How Can I Demonstrate My Financial Modeling Skills? -- 2 Financial Modeling Standards -- 1 Executive Summary -- 2 Introduction, Structure, Learning Outcomes and Case Study -- 3 Foundations of Financial Modeling -- 3.1 What Are Models and What Is Financial Modeling? -- 3.2 Analyzing the Model Requirements and Defining a Task List -- 3.3 Structuring Financial Models in Modules -- 4 Current State of Financial Modeling in Theory and Applied Work -- 4.1 Literature on Financial Modeling -- 4.2 Different Approaches - Identical Aims -- 5 Financial Modeling Standards -- 5.1 Top-10 Financial Modeling Standards -- 5.2 150 Financial Modeling Standards -- 6 Implementing the Top-10 Financial Modeling Standards with Reference to an Example -- 6.1 Define the Modeling Purpose -- 6.2 Separate the Problem into independent Subsections (Modules) -- 6.3 Provide a Graph of the Flow of Data and the Model Structure -- 6.4 Separate Inputs from Outputs -- 6.5 Choose a Unified Layout for the Worksheets -- 6.6 Use Unified Formatting.

6.7 Avoid Complex Formulas and Use Only One Type of Formula -- 6.8 Avoid Circular References -- 6.9 Work with Control Functions -- 6.10 Present the Results Professionally -- 7 Summary -- Notes -- Further Reading -- 3 Model Review -- 1 Executive Summary -- 2 Introduction, Structure and Learning Outcomes and Case Study -- 3 Fundamentals of Model Review -- 3.1 The Term ``Model Review'' -- 3.2 Steps in the Model Review Process -- 4 Errors in Financial Models -- 4.1 Qualitative Errors -- 4.2 Quantitative Errors -- 5 Error Detection - Recognizing and Finding Errors -- 5.1 Logic Inspection -- 5.2 Tests -- 5.3 Analysis Tools -- 6 Examples of Applications of Analysis Tools -- 6.1 Brief Market Overview of Analysis Tools -- 6.2 Model Review with Microsoft Excel -- 6.3 Model Review with Operis Analysis Kit (OAK) -- 7 Control Calculations -- 7.1 Control Calculations that Show the Concrete Numerical Deviation -- 7.2 Binary Control Calculations -- 8 Measures to Assess the Plausibility of the Results -- 8.1 Sensitivity Analysis -- 8.2 Scenario Analysis -- 9 Documentation -- 10 Summary -- Notes -- Further Reading -- 4 Workshop Excel Part I -- 1 Executive Summary -- 2 Introduction, Structure, Learning Outcomes and Case Study -- 3 Why Study Excel? -- 4 Developing a Financial Model -- 4.1 Defining the Task List -- 4.2 Identifying the Key Tasks -- 4.3 Visualizing Abstract Relations with Bubble Charts -- 5 Visual Display of a Financial Model -- 5.1 Structuring a Financial Model -- 5.2 Documenting a Financial Model -- 5.3 Structuring Large Financial Models Ergonomically -- 5.4 Borders and Lines: Providing Structure to the Data -- 5.5 Using Colors to Highlight Important Elements -- 6 Side Note: Using Key Combinations and the Ribbon to Work in Excel -- 6.1 Key Combinations and Sequences in Excel -- 6.2 Different Types of Key Combinations in Excel -- 7 Summary.

Further Reading -- 5 Workshop Excel Part II -- 1 Executive Summary -- 2 Introduction, Structure, Learning Outcomes and Case Study -- 3 Creating a Prototype in Excel -- 3.1 The Formula Sheet - The Translator -- 3.2 Use of Formulas -- 3.3 Activating Add-ins -- 3.4 Making Use of Additional Functions -- 3.5 Using Names to Improve Clarity of the Formulas -- 3.6 Comments -- 4 Sending Signals to the Management -- 4.1 Signaling with Colors: Conditional Formatting to Create Information -- 4.2 Text as Signal: Providing Informative Messages -- 5 Data Collection -- 5.1 Secure Data Gathering -- 5.2 Importing Internal Data -- 5.3 Importing External Data: Working with Security Prices from the Internet in Excel -- 6 Analysis Stage: Sensitivity and Scenarios -- 6.1 Sensitivity Analysis Using Data Tables -- 6.2 Scenarios with the Scenario Manager -- 6.3 Goal Seek -- 6.4 Solver - Goal Seek for Challenging Tasks -- 7 Testing the Performance of a Financial Model -- 7.1 Formula Auditing: Checking the Flow of Data and Formulas -- 7.2 Support from Error Checking -- 7.3 Formula Evaluation: Formula Assessment Step by Step -- 8 Summary -- Notes -- Further Reading -- 6 Workshop Excel Part III -- 1 Executive Summary -- 2 Introduction, Structure, Learning Outcomes and Case Study -- 3 Presenting Insights and Recommendations -- 3.1 Recommendations for the Presentation of Charts -- 3.2 Creating Simple Charts in Excel -- 3.3 Dynamic Charts -- 3.4 Selecting a Suitable Chart -- 4 Summary -- Further Reading -- 7 VBA Workshop -- 1 Executive Summary -- 2 Introduction, Structure and Learning Outcomes -- 3 Why Study Programming with VBA? -- 4 Generating Excel Software Solutions -- 4.1 Preparing Excel for Macros -- 4.2 Possibility 1: Creating Applications with the Macro Recorder -- 4.3 Possibility 2: Programming with VBA -- 5 Variables and the Most Important Data Types.

5.1 Declaring a Variable -- 5.2 Conventions for Variable Names -- 6 Process Flow Models and Charts -- 6.1 Process Flow Models -- 6.2 Flowchart -- 6.3 Hierarchy Chart -- 7 The Most Important Language Elements of VBA -- 7.1 Programming with Branches -- 7.2 Loops -- 7.3 Programming Cells and Ranges -- 8 Comfortable Input and Output Using Dialogue Fields -- 8.1 Reading Data with the InputBox -- 8.2 Data Output with the MsgBox -- 9 Programming Your Own Dialogues -- 9.1 Steps Needed to Create Your Own Dialogue -- 9.2 Control Elements -- 10 Creating Charts with VBA -- 10.1 Information needed and Types of Diagrams -- 10.2 Useful Programs for Diagrams -- 11 Tool Kit: Practical Excel Tools for Modeling -- 11.1 Programming Headers and Footers -- 11.2 Transferring Comments to a List -- 11.3 Creating a Table of Contents -- 11.4 Protecting Cells with Formulas -- 12 Summary -- Further Reading -- 8 Investment Appraisal -- 1 Executive Summary -- 2 Learning Outcomes, Definitions, Model Structure and Case Study -- 3 The Term Investment and Methods of Investment Appraisal -- 4 Static Investment Appraisal Methods -- 4.1 Cost Comparison Method -- 4.2 Profit Comparison Method -- 4.3 Average Rate of Return -- 4.4 Static Payback Period Method -- 4.5 Comparison and Assessment of the Static Investment Appraisal Methods -- 5 Dynamic Investment Appraisal Methods -- 5.1 Net Present Value Method -- 5.2 Internal Rate of Return Method -- 5.3 Annuity Method -- 5.4 Comparison and Assessment of the Methods of Dynamic Investment Appraisal -- 6 Summary -- Literature and Suggestions -- 9 Financing -- 1 Executive Summary -- 2 Learning Outcomes, Definitions, Model Structure and Case Study -- 3 Fundamental Rules of Financing -- 3.1 The Golden Rule for Balance Sheets -- 3.2 The Relationship between Equity and Debt and the Leverage Effect -- 4 Analysis of Key Figures -- 4.1 Key Return Figures.

4.2 Key Figures about Financial Structure -- 4.3 Key Figures on the Asset Structure -- 4.4 Key Figures for the Capital Structure -- 4.5 Key Figures for the Structure of Earnings -- 4.6 Cash Flow Key Figures -- 5 The Ordinary Capital Increase -- 5.1 Assumptions Concerning the Ordinary Capital Increase -- 5.2 Calculating the Values on the Balance Sheet -- 5.3 Calculating the Value of the Subscription Rights -- 6 The Long-Term Loan -- 6.1 Assumptions Concerning the Long-Term Loan -- 6.2 The Annuity Loan -- 6.3 The Amortizable Loan -- 6.4 The Bullet Loan -- 6.5 Comparison of the Various Types of Repayment -- 7 Bonds -- 7.1 Assumptions for the Bond -- 7.2 Analyzing the Bond from the Issuer Perspective -- 7.3 Analyzing the Bond from the Investor Perspective -- 7.4 Present Value Method for Known Spot Rates -- 7.5 Analysis of the Present Value Method -- 7.6 Risk Analysis -- 8 Short-Term Financing Using the Example of the Supplier Credit -- 8.1 Interest on the Supplier Credit -- 8.2 Granting a Supplier Credit -- 8.3 Delaying Payment on a Supplier Credit -- 9 The Cash Flow -- 9.1 Basics -- 9.2 Calculating the Gross Cash Flow from Operating Business Activities -- 9.3 Calculating the Operating Free Cash Flow -- 9.4 Calculating the Net Cash Flow -- 9.5 Control Calculations -- 10 Financing via Shortening of the Capital Commitment Period -- 10.1 Premises when Shortening the Capital Commitment Period -- 10.2 Reducing Receivables -- 10.3 Inventory Reductions -- 11 Summary -- Notes -- Literature and Suggestions for Further Reading -- 10 Corporate Finance Part I -- 1 Executive Summary -- 2 Introduction, Structure, Learning Outcomes and Case Study -- 3 Overview of the Methods of Company Valuation -- 4 Company Valuation Using Discounted Cash Flow Models -- 4.1 Basics of Corporate Planning -- 4.2 WACC Approach -- 4.3 Period-Specific WACC Approach -- 4.4 APV Approach.

4.5 Equity Approach.

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Electronic reproduction. Ann Arbor, Michigan : ProQuest Ebook Central, 2024. Available via World Wide Web. Access may be limited to ProQuest Ebook Central affiliated libraries.