Financial Modeling

Contents
Preface
From the Preface to the Third Edition
From the Preface to the Second Edition
From the Preface to the First Edition
0 Before All Else
Part I: Corporate Finance and Valuation
	1 Basic Financial Calculations
	2 Corporate Valuation Overview
	3 Calculating the Weighted Average Cost of Capital (WACC)
	4 Valuation Based on the Consolidated Statement of Cash Flows
	5 Pro Forma Financial Statement Modeling
	6 Building a Pro Forma Model: The Case of Caterpillar
	7 Financial Analysis of Leasing
Part II: Portfolio Models
	8 Portfolio Models—Introduction
	9 Calculating Efficient Portfolios
	10 Calculating the Variance-Covariance Matrix
	11 Estimating Betas and the Security Market Line
	12 Efficient Portfolios Without Short Sales
	13 The Black-Litterman Approach to Portfolio Optimization
	14 Event Studies
Part III: Valuation of Options
	15 Introduction to Options
	16 The Binomial Option Pricing Model
	17 The Black-Scholes Model
	18 Option Greeks
	19 Real Options
Part IV: Valuing Bonds
	20 Duration
	21 Immunization Strategies
	22 Modeling the Term Structure
	23 Calculating Default-Adjusted Expected Bond Returns
Part V: Monte Carlo Methods
	24 Generating and Using Random Numbers
	25 An Introduction to Monte Carlo Methods
	26 Simulating Stock Prices
	27 Monte Carlo Simulations for Investments
	28 Value at Risk (VaR)
	29 Simulating Options and Option Strategies
	30 Using Monte Carlo Methods for Option Pricing
Part VI: Excel Techniques
	31 Data Tables
	32 Matrices
	33 Excel Functions
	34 Array Functions
	35 Some Excel Hints
Part VII: Visual Basic for Applications (VBA)
	36 User-Defined Functions with VBA
	37 Variables and Arrays
	38 Subroutines and User Interaction
	39 Objects and Add-Ins
Selected References
Index