How To Model Money In An Excel 3D Program

Transcription

1 EXCEL MODELING AND ESTIMATION IN CORPORATE FINANCE Third Edition CRAIG W. HOLDEN Max Barney Faculty Fellow and Associate Professor Kelley School of Business Indiana University PEARSON Pearson Education International

2 Contents iii CONTENTS Preface ; vii Third Edition Changes What Is Unique About This Book Conventions Used In This Book Craig's Challenge The Excel Modeling and Estimation Series Suggestions for Faculty Members Acknowledgements About The Author PARTI TIME VALUE OF MONEY 1 Chapter 1 Single Cash Flow Present Value Future Value 2 Problems 3 Chapter 2 Annuity Present Value Future Value System of Four Annuity Variables 6 Problems 8 Chapter 3 NPV Using Constant Discounting Nominal Rate Real Rate 10 Problems 11 Chapter 4 NPV Using General Discounting Nominal Rate Real Rate 14 Problems 16 Chapter 5 Loan Amortization Basics Sensitivity Analysis 18 Problems 20 PART 2 VALUATION 21 Chapter 6 Bond Valuation Annual Payments EAR and APR By Yield To Maturity Dynamic Chart System of Five Bond Variables 25 Problems 26 vii x xi xiii xiii xiv xv xvi

3 iv Contents Chapter 7 Estimating the Cost of Capital Static CAPM Using Fama-MacBeth Method APT or Intertemporal CAPM Using Fama-McBeth Method 33 Problems 40 Chapter 8 Stock Valuation Dividend Discount Model 42 Problems 43 Chapter 9 Firm and Project Valuation Cash Flows for Five Equivalent Methods Adjusted Present Value Free Cash Flow To Equity Free Cash Flow to the Firm Dividend Discount Model Residual Income Five Equivalent Methods 54 Problems 63 Appendix: Where did those Two-Stage Formulas for the Cost of Equity Capital and the Cost of Firm Capital come from? 64 Chapter 10 The Yield Curve Obtaining It From Treasury Bills and Strips Using It To Price A Coupon Bond Using It To Determine Forward Rates 73 Problems 74 Chapter 11 US Yield Curve Dynamics Dynamic Chart 75 Problems 81 PART 3 CAPITAL BUDGETING 83 Chapter 12 Project NPV Basics Forecasting Cash Flows Working Capital Sensitivity Analysis 89 Problems 92 Chapter 13 Cost-Reducing Project Basics Sensitivity Analysis 96 Problems 96 Chapter 14 Break-Even Analysis Based On Accounting Profit Based On NPV 101 Problems 105

4 Contents v PART 4 FINANCIAL PLANNING Chapter 15 Corporate Financial Planning Actual Forecast Cash Flow Ratios Sensitivity Full-Scale Estimation 118 Problems 124 Chapter 16 Du Pont System Of Ratio Analysis Basics 127 Problems 128 Chapter 17 Life-Cycle Financial Planning Basics Full-Scale Estimation 131 Problems 139 PART 5 OPTIONS AND CORPORATE FINANCE 140 Chapter 18 Binomial Option Pricing Estimating Volatility Single Period ; Multi-Period Risk Neutral American With Discrete Dividends Full-Scale 156 Problems 164 Chapter 19 Real Options NPV Correctly vs. NPV Ignoring Option 166 Problems 169 Chapter 20 Black Scholes Option Pricing Basics Continuous Dividend Dynamic Chart Implied Volatility 175 Problems 177 Chapter 21 Debt And Equity Valuation Two Methods Impact of Risk 181 Problems 182 Chapter 22 International Parity System of Four Parity Conditions Estimating Future Exchange Rates 185 Problems 187

5 vi Contents PART 6 EXCEL SKILLS 188 Chapter 23 Useful Excel Tricks Quickly Delete The Instructions and Arrows Freeze Panes Spin Buttons and the Developer Tab Option Buttons and Group Boxes Scroll Bar Install Solver or the Analysis TooIPak Format Painter Conditional Formatting Fill Handle D Scatter Chart D Surface Chart 197 CONTENTS ON CD [3 Readme.txt 18 Excel Mod Est in Corp Fin 3.pdf H Ch 01 Single Cash Flow.xlsx H Ch 02 Ch 03 NPV Constant Discnt.xlsx Q Ch 04 NPV General Discnt.xlsx TES Ch 05 Loan Amortization.xlsx 11 Ch 06 Bond Valuation.xlsx H) Ch07CostofCapital.xlsx Q Ch 08 Stock Valuation.xlsx H Ch 09 Firm and Project Ch 10 The Yield Curve.xlsx H Ch 11 US Yield Curve Dynam.xlsx IS Ch 12 Project NPV.xlsx ESJ Ch 13 Cost Reducing Proj.xlsx E! Ch 14 Break Even Analysis.xlsx TS3 Ch 15 Corp Financial Ch 16 DuPont Ratio Anal.xlsx IS Ch 17 Life-Cycle Fin Plan.xlsx EI Ch 18 Binomial Option Pric.xlsx H Ch 19 Real Options.xlsx H Ch 20 Black Scholes Opt Pr.xlsx 13 Ch 21 Debt and Equity Val.xlsx TH Ch 22 International Parity.xlsx Q Files in Excel Format