{"product_id":"financial-modelling-in-practice-isbn-9780470997444","title":"Financial Modelling in Practice","description":"\u003ci\u003eFinancial Modelling in Practice: A Concise Guide for Intermediate and Advanced Level\u003c\/i\u003e is a practical, comprehensive and in-depth guide to financial modelling designed to cover the modelling issues that are relevant to facilitate the construction of robust and readily understandable models.  \u003cp\u003eBased on the authors extensive experience of building models in business and finance, and of training others how to do so this book starts with a review of Excel functions that are generally most relevant for building intermediate and advanced level models (such as Lookup functions, database and statistical functions and so on).  It then discusses the principles involved in designing, structuring and building relevant, accurate and readily understandable models (including the use of sensitivity analysis techniques) before covering key application areas, such as the modelling of financial statements, of cash flow valuation, risk analysis, options and real options. Finally, the topic of financial modelling using VBA is treated. Practical examples are used throughout and model examples are included in the attached CD-ROM.\u003c\/p\u003e \u003cp\u003eAimed at intermediate and advanced level modellers in Excel who wish to extend and consolidate their knowledge, this book is focused, practical, and application-driven, facilitating knowledge to build or audit a much wider range of financial models.\u003c\/p\u003e \u003cp\u003e\u003cb\u003eNote:\u003c\/b\u003e CD-ROM\/DVD and other supplementary materials are not included as part of eBook file.\u003cbr\u003e \u003c\/p\u003e \u003cp\u003eBackground, Objectives and Approach xv\u003c\/p\u003e \u003cp\u003eAbout the Author xix\u003c\/p\u003e \u003cp\u003eAcknowledgements xxi\u003c\/p\u003e \u003cp\u003e\u003cb\u003e1 Building Blocks: Selected Excel Functions and Tools 1\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eCore Functions for Financial Modelling 1\u003c\/p\u003e \u003cp\u003eArithmetic Operations 1\u003c\/p\u003e \u003cp\u003eLogical Operations 3\u003c\/p\u003e \u003cp\u003eFinancial Calculations 6\u003c\/p\u003e \u003cp\u003eDatabase Functions, Features and Pivot Tables 12\u003c\/p\u003e \u003cp\u003eStatistical Functions 16\u003c\/p\u003e \u003cp\u003eLookup and Reference Functions 20\u003c\/p\u003e \u003cp\u003eText Functions 29\u003c\/p\u003e \u003cp\u003eInformation Functions 33\u003c\/p\u003e \u003cp\u003eArray Functions, Formulae and Matrix Calculations 35\u003c\/p\u003e \u003cp\u003eGoalSeek and Solver 40\u003c\/p\u003e \u003cp\u003eThe Analysis ToolPak and Other Add-ins 43\u003c\/p\u003e \u003cp\u003eThe Analysis ToolPak 44\u003c\/p\u003e \u003cp\u003eSelected Excel Short-cuts 47\u003c\/p\u003e \u003cp\u003e\u003cb\u003e2 Principles of Modelling 49\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eWhat is a Good Model? 49\u003c\/p\u003e \u003cp\u003eModel Design 50\u003c\/p\u003e \u003cp\u003eSelection of Model Variables and their Dependencies 50\u003c\/p\u003e \u003cp\u003eHyper Sensitivity to a Variable 55\u003c\/p\u003e \u003cp\u003eLevel of Detail or Aggregation 55\u003c\/p\u003e \u003cp\u003eModel Structure and Planning 60\u003c\/p\u003e \u003cp\u003eLogical Flow 60\u003c\/p\u003e \u003cp\u003eCompactness 62\u003c\/p\u003e \u003cp\u003eNamed Ranges 64\u003c\/p\u003e \u003cp\u003eCircular References 69\u003c\/p\u003e \u003cp\u003eModel Building 74\u003c\/p\u003e \u003cp\u003eFormatting and Comments 74\u003c\/p\u003e \u003cp\u003eCreating Robust Formulae 78\u003c\/p\u003e \u003cp\u003eResults Presentation and Other Uses of Sensitivity Analysis 85\u003c\/p\u003e \u003cp\u003eGeneral Remarks on Presentation 86\u003c\/p\u003e \u003cp\u003eUsing Data Tables to Conduct Sensitivity Analysis 86\u003c\/p\u003e \u003cp\u003eHiding and Protecting Models 92\u003c\/p\u003e \u003cp\u003eModel Auditing 94\u003c\/p\u003e \u003cp\u003e\u003cb\u003e3 Financial Statement, Cash Flow and Valuation Modelling 99\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eFinancial Statement Modelling: Core Points and Example 99\u003c\/p\u003e \u003cp\u003eGeneral Comments 100\u003c\/p\u003e \u003cp\u003eIncome Statement Forecasting 102\u003c\/p\u003e \u003cp\u003eBalance Sheet Forecasting 107\u003c\/p\u003e \u003cp\u003eCash Flow Statement Forecasting 110\u003c\/p\u003e \u003cp\u003eError Checks and Feasibility Checks 111\u003c\/p\u003e \u003cp\u003eGeneral Error Checking Tools 111\u003c\/p\u003e \u003cp\u003eFeasibility Checking and Ratio Analysis 113\u003c\/p\u003e \u003cp\u003eAdding Generality 116\u003c\/p\u003e \u003cp\u003eCash Flow Valuation 120\u003c\/p\u003e \u003cp\u003eCalculation of Free Cash Flow 121\u003c\/p\u003e \u003cp\u003eDiscounting Free Cash Flow 121\u003c\/p\u003e \u003cp\u003eTerminal Value Calculations 124\u003c\/p\u003e \u003cp\u003eFurther Adjustments 128\u003c\/p\u003e \u003cp\u003eSensitivity Analysis 129\u003c\/p\u003e \u003cp\u003e\u003cb\u003e4 Risk Modelling 133\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eBenefits and Challenges of Risk Modelling 133\u003c\/p\u003e \u003cp\u003eThe Risk Modelling Process 135\u003c\/p\u003e \u003cp\u003eAn Introduction to Simulation Techniques 136\u003c\/p\u003e \u003cp\u003eThe Language of Probability Distributions 137\u003c\/p\u003e \u003cp\u003eQuick Guide to using @RISK 142\u003c\/p\u003e \u003cp\u003eTypes of Dependency Relationships in Risk Models 144\u003c\/p\u003e \u003cp\u003eThe Selection and Use of Distributions 147\u003c\/p\u003e \u003cp\u003ePragmatic Approaches and Distributions 148\u003c\/p\u003e \u003cp\u003eData-Driven Approaches and Distributions 153\u003c\/p\u003e \u003cp\u003eScientific Approaches and Distributions: The Basics 155\u003c\/p\u003e \u003cp\u003eFurther Aspects of the Science of Distributions 163\u003c\/p\u003e \u003cp\u003eFurther Example Models 167\u003c\/p\u003e \u003cp\u003e\u003cb\u003e5 Introduction to Options and Real Options Modelling 181\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eFinancial Market Derivatives: An Introduction 181\u003c\/p\u003e \u003cp\u003eReal Options Modelling 188\u003c\/p\u003e \u003cp\u003eUses and Relationships to Other Types of Analysis 189\u003c\/p\u003e \u003cp\u003e\u003cb\u003e6 VBA for Financial Modelling 203\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIntroduction 203\u003c\/p\u003e \u003cp\u003eThe Bare Essentials 204\u003c\/p\u003e \u003cp\u003eSimple Examples 208\u003c\/p\u003e \u003cp\u003eBuilding Blocks 212\u003c\/p\u003e \u003cp\u003eWorking with Ranges 212\u003c\/p\u003e \u003cp\u003eWriting Robust Code 220\u003c\/p\u003e \u003cp\u003eFurther Topics 224\u003c\/p\u003e \u003cp\u003eObject Orientation: An Introduction 224\u003c\/p\u003e \u003cp\u003eControlling Execution and Related Topics 227\u003c\/p\u003e \u003cp\u003eWorking with Functions 230\u003c\/p\u003e \u003cp\u003eChecking and Debugging Code 232\u003c\/p\u003e \u003cp\u003eExamples: Recording Macros and Related Topics 235\u003c\/p\u003e \u003cp\u003eIntroduction 235\u003c\/p\u003e \u003cp\u003eUsing GoalSeek and Solver 237\u003c\/p\u003e \u003cp\u003eExamples: Simulation Modelling 240\u003c\/p\u003e \u003cp\u003eIntroduction 240\u003c\/p\u003e \u003cp\u003eExamples: User-defined Functions 243\u003c\/p\u003e \u003cp\u003eCreating Functions 243\u003c\/p\u003e \u003cp\u003eExamples 244\u003c\/p\u003e \u003cp\u003eStructure and Organisation: Further Topics 248\u003c\/p\u003e \u003cp\u003eFurther Reading 253\u003c\/p\u003e \u003cp\u003eIndex 255\u003c\/p\u003e  \u003cb\u003eMichael Rees\u003c\/b\u003e gained a BA with First Class Honours and a Doctorate in Mathematics from Oxford University in 1985 and 1988 respectively. In 1992 he gained an MBA with Distinction from INSEAD, and in 2003 graduated in first position on the Certificate in Quantitative Finance program, also winning the Wilmott award.\u003cbr\u003e Since 2002 Michael has worked independently as a consultant and trainer in financial modelling. Prior to this he worked as a strategy consultant with Braxton Associates and Mercer Management Consulting, and also as an analyst at J.P. Morgan.\u003cbr\u003e Michael lives in Richmond, UK. He was born in Canada, has lived in several countries, and is fluent in French and German.  \"A well structured reference. If you are unclear how best to approach a modelling task or you are ready to reconsider some of your modelling habits, this is a useful bag of tricks and thoughts which can greatly simplify your task.\"\u003cbr\u003e \u003cb\u003e—\u003c\/b\u003e\u003cb\u003eDominik Geller;\u003c\/b\u003e \u003cb\u003eHead of Corporate Risk Management; F. Hoffmann\u003c\/b\u003e \u003cb\u003e–\u003c\/b\u003e\u003cb\u003eLa Roche AG\u003c\/b\u003e  \u003cp\u003e\"Michael Rees has written a financial modelling book that is exceptional in its clarity, balance of theory and practice, and its abundance of invaluable examples. Comprehensive and application-driven in its topical coverage, it is one of the very few books that address the modelling process itself. Michael Rees enables even the desperate readers to design, structure and build models appropriate for their situation and provides them with a sound and practical foundation to bring financial modelling to life.\"\u003cbr\u003e \u003cb\u003e—\u003c\/b\u003e\u003cb\u003eJohannes Klose, Principal, Allianz Risk Transfer\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\"With this outstanding book the reader gets a comprehensive guideline on how to build financial models by showing a path from theoretical approaches to more realistic models. I have never seen such a good explanation of the basic aspects of financial modelling and the presentation of risk modelling including the application of statistical functions. Mike combines visual explanations with mathematical functions and statements where necessary. Supported with a lot of examples this gives the reader a quick understanding of the different topics. The logical development from risk modelling to the analysis of real options is extremely helpful and to my knowledge has never been published in such a form. From my daily practise I would recommend this unique book to every professional or student who is engaged in business modelling and especially interested in risk management.\"\u003cbr\u003e \u003cb\u003e—\u003c\/b\u003e\u003cb\u003eD. Martin Erdmann, Director Risk Management, Infineon Technologies AG\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\"Michael Rees has hit the nail on the head. In \u003ci\u003eFinancial Modelling in Practice\u003c\/i\u003e, he has addressed many common problems business professionals face in accurately representing their real-life situations as Excel spreadsheets. Modelling is crucial for informed decision-making, as is taking uncertainty and risk into account. Michael Rees addresses these needs in a practical, easily understood way that is both robust and accessible.\"\u003cbr\u003e \u003cb\u003e—\u003c\/b\u003e\u003cb\u003eRandy Heffernan, Vice President, Palisade Corporation\u003c\/b\u003e\u003c\/p\u003e  \u003ci\u003eFinancial Modelling in Practice: A Concise Guide for Intermediate and Advanced Level\u003c\/i\u003e is a practical, comprehensive and in-depth guide to financial modelling designed to cover the modelling issues that are relevant to facilitate the construction of robust and readily understandable models.  \u003cp\u003eBased on the authors extensive experience of building models in business and finance, and of training others how to do so this book starts with a review of Excel functions that are generally most relevant for building intermediate and advanced level models (such as Lookup functions, database and statistical functions and so on). It then discusses the principles involved in designing, structuring and building relevant, accurate and readily understandable models (including the use of sensitivity analysis techniques) before covering key application areas, such as the modelling of financial statements, of cash flow valuation, risk analysis, options and real options. Finally, the topic of financial modelling using VBA is treated. Practical examples are used throughout and model examples are included in the attached CD-ROM.\u003c\/p\u003e \u003cp\u003eAimed at intermediate and advanced level modellers in Excel who wish to extend and consolidate their knowledge, this book is focused, practical, and application-driven, facilitating knowledge to build or audit a much wider range of financial models.\u003c\/p\u003e \u003cp\u003e\"An excellent book which presents advanced financial modelling tools and simulations, and applies them to modern aspects of financial management. As a renowned expert in modelling, Michael Rees develops efficient techniques for simulation and sensitivity analysis within an Excel and Excel add-on framework using many useful and transparent applications in the context of company valuation, derivative business and risk management, enabling the reader to develop good models themselves. A unique book which is highly instructive and motivating.\"\u003cbr\u003e \u003cb\u003e—Professor Dr Dieter Gramlich, University of Cooperative Education, Heidenheim, Germany\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\"Mike Rees's book fills an important gap in the literature on how to model financial data. It not only provides a whole host of useful suggestions on how to design, structure, build and analyse models; including tips on how use some of the more advanced functionality in Excel, but also in a clear and concise way explains how to include uncertainty in to these models. During the last few years many business's environment have changed, creating the need to explicitly include uncertainty into their decision making rather than hide behind simple (and often flawed) assumptions of what the future may hold. Mike clearly understands the importance of this area and includes several sections which provide an excellent introduction to anyone starting to apply these types of techniques in their financial models for the first time. It is the combination of best practice modelling techniques, plenty of examples and the basics of some of the more advanced approaches that make this book a useful addition to anyone building financial models.\"\u003cbr\u003e \u003cb\u003e—\u003c\/b\u003e\u003cb\u003eAndrea Dickens,\u003c\/b\u003e \u003cb\u003eDecision Analysis Group Leader, Finance Excellence Unilever\u003c\/b\u003e\u003c\/p\u003e","brand":"Wiley","offers":[{"title":"Default Title","offer_id":47989211300069,"sku":"NP9780470997444","price":141.0,"currency_code":"USD","in_stock":false}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/1842\/7735\/files\/9780470997444.jpg?v=1761783223","url":"https:\/\/k12savings.com\/es\/products\/financial-modelling-in-practice-isbn-9780470997444","provider":"K12savings","version":"1.0","type":"link"}