Financial Modeling, 3rd Edition

✍ Scribed by Simon Benninga

• Publisher: The MIT Press
• Year: 2008
• Tongue: English
• Leaves: 1167
• Edition: 3
• Category: Library

✦ Synopsis

I first borrowed Simon Benninga's book from a Professional Library, but was so impressed I decided to buy it via Amazon..
As a non intuitive IT person I particularly liked the 3 pronged approach taken by Simon.
He lays out the spreadsheet as follows:
a)display of the input and results
b) text displays of the formulae
c) commentary on the functions used and logic and alternatives

A CD comes enclosed with the book which I downloaded but am not as yet trying to use.
Instead I am manually recreating the spreadsheets and adding some supplementary comments and markers of my own -this is how I best learn.

I hate p= r/n formulae - Simon quotes these but then lists them as actual formulae.

All in all a very clear explanatory book - readily able to be interpreted and I am rapidly gaining enhanced Excel skills..
With over 1000 pages of examples of functions the book is a bargain. I thoroughly recommend it.

Neil Fitzjames, Auckland, New Zealand

✦ Table of Contents

Contents......Page 8
Preface......Page 24
Preface to the Second Edition......Page 30
Preface to the First Edition......Page 32
I - Corporate Finance Models......Page 34
1 - Basic Financial Calculations......Page 36
2 - Calculating the Cost of Capital......Page 72
3 - Financial Statement Modeling......Page 136
4 - Building a Financial Model: The Case of PPG Corporation......Page 168
5 - Bank Valuation......Page 210
6 - The Financial Analysis of Leasing......Page 236
7 - The Financial Analysis of Leveraged Leases......Page 252
II - Portfolio Models......Page 270
8 - Portfolio Models—Introduction......Page 272
9 - Calculating Efficient Portfolios When There Are No Short-Sale Restrictions......Page 294
10 - Calculating the Variance-Covariance Matrix......Page 324
11 - Estimating Betas and the Security Market Line......Page 350
12 - Efficient Portfolios without Short Sales......Page 368
13 - The Black-Litterman Approach to Portfolio Optimization......Page 382
14 - Event Studies......Page 404
15 - Value at Risk......Page 430
III - Option-Pricing Models......Page 452
16 - An Introduction to Options......Page 454
17 - The Binomial Option-Pricing Model......Page 476
18 - The Lognormal Distribution......Page 516
19 - The Black-Scholes Model......Page 542
20 - Option Greeks......Page 582
21 - Portfolio Insurance......Page 610
22 - An Introduction of Monte Carlo Methods......Page 630
23 - Using Monte Carlo Methods for Option Pricing......Page 646
24 - Real Options......Page 682
IV - Bonds......Page 702
25 - Duration......Page 704
26 - Immunization Strategies......Page 726
27 - Modeling the Term Structure......Page 738
28 - Calculating Default-Adjusted Expected Bond Returns......Page 752
V - Technical Considerations......Page 776
29 - Generating Random Numbers......Page 778
30 - Data Tables......Page 798
31 - Matrices......Page 808
32 - The Gauss-Seidel Method......Page 818
33 - Excel Functions......Page 822
34 - Using Array Functions and Formulas......Page 858
35 - Some Excel Hints......Page 874
VI - Introduction to Visual Basic for Applications......Page 898
36 - User-Defined Functions with VBA......Page 900
37 - Types and Loops......Page 928
38 - Macros and User Interaction......Page 952
39 - Arrays......Page 974
40 - Objects and Add-Ins......Page 1008
41 - Information from the Web......Page 1062
Appendix 1: Excerpts from the Help File......Page 1123
Appendix 2: The R1C1 Reference Style......Page 1126
References......Page 1128
Index......Page 1140

✦ Subjects

Финансово-экономические дисциплины;Финансовая математика;