Financial Modelling Through Excel - PDF

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					                                                                                                        CORPORATE FINANCE

Corporate Financial Modelling with Excel (Module 2)
1 – 3 JULY 2009, SINGAPORE

This application-driven, hands-on practical 3-day programme leads delegates through various financial modelling
techniques, using Excel as the tool. It focuses on the basic nuts & bolts of financial model preparation and structure,
and provides the delegate with useful modelling techniques than can be immediately applied in the work place.

This is a very hands-on, non-intimidating, course – delegates work through various practical exercises under the
supervision, and with the help, of the instructor to get to grips with practical modeling techniques and, as a valuable
spin-off, advanced Excel functions useful (and essential) in the preparation of corporate financial models.

By the end of this 3-day course delegates will know how to structure models correctly, and will appreciate the
necessity for so doing.

    They will understand the interaction between Income Statements, Balance Sheets, and Cash Flow statements
    in financial models, and the necessity for having them
    They will enhance considerably their knowledge of Excel so far as it pertains to financial models, e.g. they will
    understand how to perform sensitivity analyses, create scenarios and data tables, etc.
    They will also benefit from the discussions and exercises on the Weighted Average Cost of Capital (WACC),
    Net Present Values (NPVs) and Internal Rates of Return (IRR), and will learn the importance of these
    Knowledge gained in setting up “switches” in their models, allowing them to investigate the effect of different
    alternatives, will be of great value to them

   Financial officers, budget officers, middle and senior management
   Persons involved in the construction of project models
   All persons involved in the construction and use of financial models, including budgets, projections,
   evaluations, cash flows, projects, etc.

   A basic knowledge of Income Statements, Balance sheets and Cash Flow statements
   Delegates should be familiar with Microsoft Excel (though not necessarily expert in the use thereof, as any
   relevant Excel function pertinent to an exercise will be discussed prior to tackling the exercise)

    Delegates are required to bring along a laptop loaded with Microsoft Excel 2000 & above

Day 1

    Types of financial models
    Example of a deterministic model
    Model Structure
    The integrity of the model
    Data validation techniques
    Extracting positive and negative balances
    Calculating working capital items using the Offset function
    Completing a monthly budget model
    Logical tests
                                                                                                        CORPORATE FINANCE

    Multi-file models
    A Sales model with links and overridden data
    Pivot Table Reports
    Consolidating the branch files
    Summing through the sheets
    Converting the consolidated results to foreign currency
    Financial Ratios

Day 2

    Data tables
    Sensitivity analysis – Sensitivity tables and Data tables
    Recording a Macro
    Creating a sensitivity graph
    The Weighted Average Cost of Capital (WACC) and its importance
    Discounted cash flow
    Discounted cash flow over unequal periods
         -    Exercise - Which project produces the best yield?
    Calculating Capital and Interest payments
    Using =SUM to accumulate data
    Building a project model:
         -    The 20-year project - calculating loan interest & repayments
         -    The 20-year project - calculating cash flow, dividends, and balancing the balance sheet
    Measuring the return on investment
         -    Exercise - Calculating the returns of the 20-year project
    Lookup & Index
    Index & Lookup
    Break-even points
         -    Exercise - Break-even point

Day 3

    Creating Scenarios
    Comparing Scenarios
    Scenario summary
         -    Exercise - Creating 3 scenarios
    Choosing between alternatives (setting “switches”)
         -    Optional exercise - Lease or Buy – Anticipating change
    Force-balancing the Balance Sheet (and getting the balancing figure in the right place)
    Valuing Companies on the basis of free cash flow
    Free cash flow & the valuation of companies
         -    Exercise - Using free cash flow to value a company
    Optimisation Models
         -    Exercise - A simple optimisation model
         -    Exercise - A routing problem
    Weighted average
    Mean & Standard deviation
    Portfolio Analysis
         -    Exercise – Balancing the portfolio
         -    Basic Forecasting
         -    Probabilities
         -    Monte Carlo Simulation – Basics

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