Financial Modeling - Hardcover

Benninga, Simon

Hardcover

ISBN 10: 0262026287 ISBN 13: 9780262026284

Publisher: MIT Press, 2008

Synopsis

Too often, finance courses stop short of making a connection between textbook financeand the problems of real-world business. Financial Modeling bridges this gapbetween theory and practice by providing a nuts-and-bolts guide to solving common financial modelswith spreadsheets. Simon Benninga takes the reader step by step through each model, showing how itcan be solved using Microsoft Excel. The long-awaited third edition of this standard text maintainsthe "cookbook" features and Excel dependence that have made the first and second editionsso popular. It also offers significant new material, with new chapters covering such topics as bankvaluation, the Black-Litterman approach to portfolio optimization, Monte Carlo methods and theirapplications to option pricing, and using array functions and formulas. Other chapters, includingthose on basic financial calculations, portfolio models, calculating the variance-covariance matrix,and generating random numbers, have been revised, with many offering substantially new and improvedmaterial. Other areas covered include financial statement modeling, leasing, standard portfolioproblems, 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 forusing Excel. The last section of the text covers the Visual Basic for Applications (VBA) techniquesneeded for the book. The accompanying CD contains Excel worksheets and solutions to end-of-chapterexercises.

About this title

Review

Endorsement from the 2nd Edition:

"This is applied finance theory for the professional at its best. As a student, I and countless others learnt the intricacies of Lotus and financial theory from Professor Benninga's first book--Numberical Techniques in Finance. Now, as a professional, I do not have to `re-invent the wheel' in Excel. An invaluable guide. A must for all financial analysts." -- -Vikas Nath, Global Strategist, Emerging Equity Markets, Union Bank of Switzerland, London

Endorsement from the 2nd Edition:

"Financial Modeling belongs on the desk of every finance professional. Its no-nonsense, hands-on approach makes it an indispensable tool." -- -Hal R. Varian, Dean, School of Information Management and Systems, University of California, Berkeley

Review from the 1st Edition:

"Financial Modeling is highly-recommended to readers who are interested in an introduction to basic, traditional approaches to financial modeling and anaylsis, as well as to those who want to learn more about applying spreadsheet software to financial analysis." -- -Edward Weiss, Journal of Computational Intelligence in Finance

Review from the 2nd Edition:

"Benninga has a clear writing style and uses numberous illustrations, which make this book one of the best texts on using Excel for finance that I've seen." -- -Ed McCarthy, Ticker Magazine

Review from the 2nd Edition:

"The author describes this as a `cookbook' and that is a good analogy.... Its breadth is extensive, covering simple present valuing and cost of capital ... to the likes of real options and early exercise of American-style options. ...A worthwile acquisition." -- -Paul Dentskevitch, Risk Magazine

Synopsis

The third edition of this standard text retains the popular "cookbook" features of earlier editions and includes expanded and new coverage of such topics as bank valuation, the Black-Litterman portfolio selection model, Monte Carlo pricing methods, array function, and getting information from the Internet with VBA.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-Sidel 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.

Edition details

• Publisher: MIT Press
• Publication date: 2008
• Language: English
• ISBN 10: 0262026287
• ISBN 13: 9780262026284
• Binding: Hardcover
• Edition number: 3
• Number of pages: 752