Financial Modeling
Our objective in this course is to learn the fundamentals and practise building financial models using Microsoft Excel.
By the end of the semester each student should be able develop an understanding of any financial relationship and build that financial relationship into a model using the built-in functions of excel.
Keep in mind that financial modeling, by definition, requires significant work outside the classroom.
Models are introduced, demonstrated, and reviewed in class, but each student is expected to research and collect data, and to construct the models, prior to each weeks class meeting.
Professionalism
Although Justice Sandra Day O'Connor was speaking of the legal profession we can paraphrase her statement on Professionalism as:
|
"To me, the essence of professionalism is a commitment to develop one’s skills to the fullest and to apply [them] responsibly to the problems at hand. Professionalism requires adherence to the highest ethical standards of conduct and a willingness to subordinate narrow self-interest in pursuit of the more fundamental goal of public service. Because of the tremendous power they wield in our system, {bankers, financial advisors, and finaciers} must never forget that their duty
to serve their clients fairly and skillfully takes priority over the personal accumulation of wealth. At the same time, {they} must temper bold advocacy for their clients with a sense of responsibility to the larger {finanical and economic} system which strives, however imperfectly, to provide {fair opportunity} for all."
|
U.S. Supreme Court Justice Sandra Day O'Connor
www.mow.uscourts.gov/outreach/ioc/professionalism_02_10.pdf
|
Required Materials
- Flash Drive
- Finance Ribbon
Recommended Materials
|
Chandan Sengupta
"Financial Modeling using Excel and VB" (For Excel 2007)
Wiley Finance
2009
|
|
Simon Benninga
"Financial Modeling"
MIT Press
2008
|
|
Elisabeth Oltheten & Kevin Waspi
"Financial Markets, A Practicum"
GRT
2012
|
We will be using Sengupta as our main text. It is easier to follow than the Benninga if you are a beginner. We will also be using some of the models from Benninga. This is a good second text. The Finance is more sophisticated but it is less user friendly. If you are taking this class with a friend or fraternity-brother I suggest one of you buy Sengupta and the other buy Benninga.
Further Reading
|
If you are looking for models specifically geared to Investment Banking try
|
|
Joshua Rosenbaum & Joshua Pearl
"Investment Banking"
Wiley Finance
2009
|
Elisabeth Oltheten
Assistant Professor of Finance
[]
|