{"product_id":"corporate-and-project-finance-modeling-isbn-9781118854365","title":"Corporate and Project Finance Modeling","description":"\u003cp\u003e\u003cb\u003eA clear and comprehensive guide to financial modeling and valuation with extensive case studies and practice exercises\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003e\u003ci\u003eCorporate and Project Finance Modeling\u003c\/i\u003e \u003c\/b\u003etakes a clear, coherent approach to a complex and technical topic. Written by a globally-recognized financial and economic consultant, this book provides a thorough explanation of financial modeling and analysis while describing the practical application of newly-developed techniques. Theoretical discussion, case studies and step-by-step guides allow readers to master many difficult modeling problems and also explain how to build highly structured models from the ground up. The companion website includes downloadable examples, templates, and hundreds of exercises that allow readers to immediately apply the complex ideas discussed.\u003c\/p\u003e \u003cp\u003eFinancial valuation is an in-depth process, involving both objective and subjective parameters. Precise modeling is critical, and thorough, accurate analysis is what bridges the gap from model to value. This book allows readers to gain a true mastery of the principles underlying financial modeling and valuation by helping them to:\u003c\/p\u003e \u003cul\u003e \u003cli\u003eDevelop flexible and accurate valuation analysis incorporating cash flow waterfalls, depreciation and retirements, updates for new historic periods, and dynamic presentation of scenario and sensitivity analysis;\u003c\/li\u003e \u003cli\u003eBuild customized spreadsheet functions that solve circular logic arising in project and corporate valuation without cumbersome copy and paste macros;\u003c\/li\u003e \u003cli\u003eDerive accurate measures of normalized cash flow and implied valuation multiples that account for asset life, changing growth, taxes, varying returns and cost of capital;\u003c\/li\u003e \u003cli\u003eIncorporate stochastic analysis with alternative time series equations and Monte Carlo simulation without add-ins;\u003c\/li\u003e \u003cli\u003eUnderstand valuation effects of debt sizing, sculpting, project funding, re-financing, holding periods and credit enhancements.\u003c\/li\u003e \u003c\/ul\u003e \u003cb\u003e\u003ci\u003eCorporate and Project Finance Modeling\u003c\/i\u003e\u003c\/b\u003e provides comprehensive guidance and extensive explanation, making it essential reading for anyone in the field. \u003cp\u003ePreface xvii\u003c\/p\u003e \u003cp\u003eAcknowledgments xxiii\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePart I Financial Modeling Structure and Design: Structure and Mechanics of Developing Financial Models For Corporate Finance and Project Finance Analysis\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 1 Financial Modeling and Valuation Nightmares: Problems That Financial Models Cannot Solve 3\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 2 Becoming a Black Belt Modeler 9\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 3 General Model Objectives of Structuring Transactions, Risk Analysis, and Valuation 13\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 4 The Structure of Alternative Financial Models 17\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eStructure of a Corporate Model: Incorporating History and Deriving Forecasts from Historical Analysis 21\u003c\/p\u003e \u003cp\u003eUse of the INDEX Function in Corporate Models 26\u003c\/p\u003e \u003cp\u003eEasing the Pain of Acquiring PDF Data 28\u003c\/p\u003e \u003cp\u003eStructure of a Project Finance Model That Accounts for Different Risks in Different Phases over the Life of a Project 30\u003c\/p\u003e \u003cp\u003eReconciliation of Internal Rate of Return in Project Finance with Return on Investment in Corporate Finance 33\u003c\/p\u003e \u003cp\u003eStructure of an Acquisition Model: Alternative Transaction Prices and Financing Terms 35\u003c\/p\u003e \u003cp\u003eStructure of an Integrated Merger Model: Forecasting Earnings per Share 37\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 5 Avoiding Bad Programming Practices and Creating Effective Auditing Processes 41\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eHow to Make Financial Models More Efficient and Accurate 44\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 6 Developing and Efficiently Organizing Assumptions 55\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eAssumptions in Demand-Driven Models versus Supply-Driven Models: The Danger of Overcapacity in an Industry 55\u003c\/p\u003e \u003cp\u003eCreating a Flexible Input Structure for Model Assumptions 60\u003c\/p\u003e \u003cp\u003eAlternative Input Structures for Project Finance and Corporate Finance Models 62\u003c\/p\u003e \u003cp\u003eSetting Up Inputs with Code Numbers and the INDEX Function 62\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 7 Structuring Time Lines 67\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eTiming in Corporate Finance Models: Distinguishing the Historical Period, Explicit Period, and Terminal Period 67\u003c\/p\u003e \u003cp\u003eDevelopment to Decommissioning: Phases in the Life of a Project Finance Model 69\u003c\/p\u003e \u003cp\u003eTiming in Acquisition Models: Separating the Transaction Period, the Holding Period, and the Exit Period 70\u003c\/p\u003e \u003cp\u003eStructuring a Time Line to Measure History, Explicit Periods, and Terminal Periods in Corporate Models and Risk Phases in Project Finance Models 72\u003c\/p\u003e \u003cp\u003eComputing Start of Period and End of Period Dates 73\u003c\/p\u003e \u003cp\u003eTRUE and FALSE Switches in Modeling Time Periods 75\u003c\/p\u003e \u003cp\u003eComputing the Age of a Project in Years on a Monthly, Quarterly, or Semiannual Basis 77\u003c\/p\u003e \u003cp\u003eThe Magic of a HISTORIC Switch in a Corporate Model 78\u003c\/p\u003e \u003cp\u003eTransferring Data from a Corporate Model to an Acquisition Model Using MATCH and INDEX Functions 82\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 8 Projecting Revenues, Expenses, and Capital Expenditures to Derive Pretax Cash Flow 85\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eTransparent Calculations of Pretax Cash Flow 85\u003c\/p\u003e \u003cp\u003eInflation and Growth Rates in Calculations of Pretax Cash Flow 88\u003c\/p\u003e \u003cp\u003eValuation Analysis from Prefinancing, Pretax Cash Flow 90\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 9 Moving from Pretax Cash Flow to After-Tax Free Cash Flow 91\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eWorking Capital Analysis 91\u003c\/p\u003e \u003cp\u003eProblems in Computing Depreciation Expense in Corporate Models Involving Asset Retirements 92\u003c\/p\u003e \u003cp\u003ePortfolios of Assets with a Vintage Process 94\u003c\/p\u003e \u003cp\u003eAccounting for Asset Retirements in Corporate Models 99\u003c\/p\u003e \u003cp\u003eAlternative Methods for Deriving Retirements Associated with Existing Assets in Corporate Models 103\u003c\/p\u003e \u003cp\u003eDepreciation Issues in Project Finance Models 109\u003c\/p\u003e \u003cp\u003eModeling the Change in Deferred Taxes in Corporate Models 110\u003c\/p\u003e \u003cp\u003eAdjusting the Tax Basis in an Acquisition 111\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 10 Adding Debt to a Corporate or Project Finance Model by Programming Cash Flow Waterfalls 113\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eAdding the Debt Schedule to a Financial Model 114\u003c\/p\u003e \u003cp\u003eModeling Scheduled Debt Repayments 116\u003c\/p\u003e \u003cp\u003eConnecting Debt to Cash Flow in Corporate Models 117\u003c\/p\u003e \u003cp\u003eWith a Structured Process, You Can Model Any Cash Flow Waterfall 119\u003c\/p\u003e \u003cp\u003eDefaults on Debt and Measuring the Debt Internal Rate of Return 124\u003c\/p\u003e \u003cp\u003eAssessing Risk and Return Characteristics of Subordinated Debt 127\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 11 Alternative Calculations of Equity Distributions 131\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eModeling Dividend Distributions 132\u003c\/p\u003e \u003cp\u003eComputing a Target Capital Structure through Simulating New Equity Issues and Buybacks 136\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 12 Putting Together Financial Statements and Calculating Income Taxes 139\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eComputation of Taxes Paid and Taxes Deferred 140\u003c\/p\u003e \u003cp\u003eCash Flow Statement and Balance Sheet 144\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePart II Analyzing Risks With Financial Models: Sensitivity Analysis, Scenario Analysis, Break-Even Analysis, Time Series, and Monte Carlo Simulation\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 13 Risk Assessment: The Centerpiece of All Valuation, Contracting, and Credit Issues in Finance 149\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eSix Alternative Ways to Assess the Risk of a Company, a Project, or a Contract 151\u003c\/p\u003e \u003cp\u003eUsing Direct Risk Assessment to Measure Cash Flow and Financial Ratios 154\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 14 Defining, Describing, and Assessing Risk in a Risk Allocation Matrix 159\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 15 Presentation of Risk Analysis through Adding Sensitivity Analysis to Financial Models 165\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eSetting Up Data for Making Graphs by Converting Periodic Data into Annual, Semiannual, or Quarterly Data 167\u003c\/p\u003e \u003cp\u003eUsing the INDIRECT Function to Automate Conversion to Time Period Data 172\u003c\/p\u003e \u003cp\u003eMaking Flexible Graphs for Sensitivity Analysis 173\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 16 Using Financial Models to Establish Break-Even Points for Key Input Variables with Data Tables 185\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eEstablishing Break-Even Criteria When Analyzing Financial Models 188\u003c\/p\u003e \u003cp\u003eMechanics of Using Data Tables to Compute Break-Even Points Automatically 193\u003c\/p\u003e \u003cp\u003eCreating Data Tables Using VBA Instead of the Data Table Tool 201\u003c\/p\u003e \u003cp\u003eSummary of Break-Even Analysis 205\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 17 Constructing Flexible Scenario Analysis for Risk Assessment 207\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eMechanics of Scenario Analysis 210\u003c\/p\u003e \u003cp\u003eUsing VBA Code to Create a Scenario Analysis 221\u003c\/p\u003e \u003cp\u003eGetting the Best of Both Worlds: Creating a Special Custom Scenario That Allows Use of Spinner Buttons and Drop-Down Boxes 223\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 18 Generating Tornado Diagrams, Spider Charts, and Waterfall Graphs 231\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eTornado Diagrams That Display Which Variables Have the Largest Effect on Value and Which Variables Have the Least Effect on an Output Variable 232\u003c\/p\u003e \u003cp\u003eCreating a Tornado Diagram by Extending Scenario Analysis 234\u003c\/p\u003e \u003cp\u003eCreating a Tornado Diagram Using a Two-Way Data Table 242\u003c\/p\u003e \u003cp\u003eSpider Diagrams That Illustrate How Each Range in Input Variables Affects an Output Variable 246\u003c\/p\u003e \u003cp\u003eHow to Create a Spider Diagram Using a Two-Way Data Table 247\u003c\/p\u003e \u003cp\u003ePresenting Sensitivity Analysis with a Waterfall Chart 250\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 19 Adding Probabilistic Risk Analysis and Time Series Equations to Financial Models 253\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eDefinition of Some Terms for Adding Stochastic Analysis to Your Financial Models 256\u003c\/p\u003e \u003cp\u003eUsing Probability Distributions with Spreadsheet Functions Rather Than Equations with Greek Letters 258\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 20 Taking the Mystery out of Applying Time Series Analysis and Monte Carlo Simulation in Financial Models 263\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eStep-by-Step Procedure to Incorporate a Monte Carlo Simulation into Your Models 266\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 21 Constructing Probability Distributions with Trends, Mean Reversion, Price Boundaries, and Correlations among Variables 277\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eStarting Point for Developing Time Series Equations—Brownian Motion and Normal Distributions 279\u003c\/p\u003e \u003cp\u003eTesting the Assumption That Input Variables Are Normally Distributed 281\u003c\/p\u003e \u003cp\u003ePrice Boundaries and Short-Run Marginal Cost 285\u003c\/p\u003e \u003cp\u003eMean Reversion and Long-Run Equilibrium Analysis 286\u003c\/p\u003e \u003cp\u003eModeling Correlations among Variables in Time Series Equations 289\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 22 The Difficult Problem of Estimating Volatility, Mean Reversion, Time Trends, Correlations, and Price Boundaries from Historical Data or Market Data 295\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eCalculation of Volatility from a Random Walk Process 296\u003c\/p\u003e \u003cp\u003eAttempting to Measure the Presence of Mean Reversion in Historical Data 297\u003c\/p\u003e \u003cp\u003eAttempting to Measure the Presence of Mean Reversion by Evaluating Changes in Periodic Volatility 300\u003c\/p\u003e \u003cp\u003eRisk Analysis Summary 303\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePart III Advanced Corporate Modeling: Modeling Terminal Value With Stable Ratios In the Discounted Cash Flow Model, Deriving Implied Multiples, and Computing the Ridge Between Equity Value and Enterprise Value\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 23 Overview of Issues When Computing Normalized Cash Flow and Terminal Value 307\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 24 Computing the Return on Invested Capital for Historical and Projected Periods in Corporate Models 313\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eWorking with a Free Cash Flow Perspective, an Equity Cash Flow Perspective, or Both in Computing Financial Ratios 314\u003c\/p\u003e \u003cp\u003ePresenting Return on Invested Capital in Financial Models 316\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 25 Calculation of Invested Capital 321\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eDissecting the Financial Structure of a Corporation to Understand the Bridge from Enterprise Value to Equity Value 323\u003c\/p\u003e \u003cp\u003eDrawing an Imaginary Line underneath EBIT to Understand the Financial Structure of a Corporation 326\u003c\/p\u003e \u003cp\u003eConstructing a Long-Term Model to Create Proof of Corporate Finance Concepts 328\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 26 Complex Items in Balance Sheet Analysis: Deferred Taxes, Operating Cash, and\u003c\/b\u003e \u003cb\u003eDerivative Assets 337\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eTreatment of Accumulated Deferred Taxes Arising from Depreciation 337\u003c\/p\u003e \u003cp\u003eClassification of Operating Cash That Produces Interest Income below the EBITDA Line 341\u003c\/p\u003e \u003cp\u003eTreatment of Derivative Assets and Liabilities Depending on How Derivatives Affect EBITDA 344\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 27 Four General Terminal Value Methods 347\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eMethod 1: Stable Growth Using the (1 + g)\/(WACC – g) Formula 349\u003c\/p\u003e \u003cp\u003eMethod 2: Value Driver Method—Incorporating the Return Relative to Cost of Capital in Terminal Value 351\u003c\/p\u003e \u003cp\u003eMethod 3: Use of Multiples from Comparative Analysis 352\u003c\/p\u003e \u003cp\u003eMethod 4: Derived Multiple Formula 353\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 28 Terminal Value and Philosophy: Company Growth Rates and Overall Economic Growth\u003c\/b\u003e \u003cb\u003e357\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eComputing Transition Periods Using Compound Growth Rates and Switch Variables 359\u003c\/p\u003e \u003cp\u003eComputing Explicit Period Cash Flow and Terminal Value with Different Starting and Ending Points 362\u003c\/p\u003e \u003cp\u003eComputing Value with Changing Weighted Average Cost of Capital and a Midyear Convention 365\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 29 Normalizing Terminal Year Cash Flows for Stable Working Capital Investment 369\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eEffect of Changes in Growth on Working Capital Investment, Capital Expenditures, Depreciation, and Deferred Taxes 370\u003c\/p\u003e \u003cp\u003eDeveloping a Simple Equation for Normalizing Working Capital 371\u003c\/p\u003e \u003cp\u003eIncorporating Terminal Period Normalized Cash Flow in a Corporate Model 375\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 30 Relationship of Growth, Capital Expenditures, Depreciation, and Return on Investment 377\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eThe Long-Term Stable Ratio of Capital Expenditures to Depreciation and the Ratio of Depreciation Expense to Net Plant 378\u003c\/p\u003e \u003cp\u003eComputing the Ratio of Capital Expenditures to Depreciation When Historical Growth Differs from Prospective Growth 385\u003c\/p\u003e \u003cp\u003eComputing the Ratio of Capital Expenditures to Depreciation 390\u003c\/p\u003e \u003cp\u003eImplementing the Stable Ratio of Capital Expenditures to Depreciation in Valuation Analysis 393\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 31 Computing Normalized Deferred Tax Changes 399\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eStable Ratio of Deferred Tax to Capital Expenditure without Change in Growth Rate 400\u003c\/p\u003e \u003cp\u003eNormalized Deferred Tax with Change in Growth Rate 404\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 32 Terminal Value and the Ability of a Company to Earn Returns above the Cost of Capital 407\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eThe Myth of Convergence of Return on Capital to Cost of Capital 408\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 33 Errors and Distortions in Applying the Value Driver Formula 415\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eDeriving the Value Driver Formula for the Price\/Earnings Ratio and Equity Value 416\u003c\/p\u003e \u003cp\u003eDeriving Implicit Assumptions about the Progression of the Incremental Return on Equity in the\u003c\/p\u003e \u003cp\u003eEquity-Based Value Driver Formula 418\u003c\/p\u003e \u003cp\u003eDeriving the Value Driver Formula Using the Return on Invested Capital and the Weighted Average Cost of Capital 425\u003c\/p\u003e \u003cp\u003eBiases in the Value Driver Formula in a Case with Only Working Capital 427\u003c\/p\u003e \u003cp\u003eProblems of the Value Driver Formula When Invested Capital Includes Net Plant 432\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 34 Computing Implied Price\/Earnings Ratios for Use in Terminal Value Calculations 435\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eModel for Deriving the P\/E Ratio from Value Drivers 438\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 35 Computing an Implied EV\/EBITDA Ratio in Terminal Value Calculations 445\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eSimulation Model to Derive Implied EV\/EBITDA Ratio from Invested Capital with Constant Growth 446\u003c\/p\u003e \u003cp\u003eFunction to Derive Implied EV\/EBITDA Ratio 448\u003c\/p\u003e \u003cp\u003eComprehensive Analysis to Derive Implied EV\/EBITDA Ratio with Changing Growth, Deferred Taxes, and Working Capital 449\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 36 Developing Value Drivers for P\/E and EV\/EBITDA Ratios with Benchmarking and Regression 453\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eBenchmarking Multiples to Derive Cost of Capital 454\u003c\/p\u003e \u003cp\u003eDownloading Data for a Sample of Companies from the Internet into a Spreadsheet 455\u003c\/p\u003e \u003cp\u003eRunning Regression Analysis on Financial Data 458\u003c\/p\u003e \u003cp\u003eAdvanced Corporate Modeling Summary 460\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePart IV Complex Issues: Circular References and Other Complex Issues From Financial Structuring In Project Finance and Corporate Finance Models\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 37 Resolving Circular References in Acquisition Models: Computing Interest Expense on the Average Balance of Debt 465\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eCircular References and Use of Opening Balances in Annual Models 466\u003c\/p\u003e \u003cp\u003eAlternative Techniques for Solving Circular Reference Logic Problems in Financial Models 468\u003c\/p\u003e \u003cp\u003eResolution of Circular References from a Cash Flow Sweep Using the Iteration Button 470\u003c\/p\u003e \u003cp\u003eSolving Circular References from Cash Sweeps with Goal Seek and Solver 472\u003c\/p\u003e \u003cp\u003eSolving Basic Circular References from Cash Sweeps with a Horrible Copy and Paste Macro 474\u003c\/p\u003e \u003cp\u003eSolving Circular References Related to a Cash Sweep Using Algebra 475\u003c\/p\u003e \u003cp\u003eSolving Circular References with Functions That Iterate around Equations That Cause the Problem 479\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 38 Creating a Structured Cash Flow Process in a Corporate Model to Resolve Circular References 483\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eStructuring a Corporate Model with a Cash Flow Waterfall 483\u003c\/p\u003e \u003cp\u003eResolving Circular References in a Corporate Model Using an Iterative User-Defined Function 487\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 39 Overview of Complex Project Finance Modeling Structuring Issues 491\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eDifficult Project Finance Problems: Structuring versus Risk Analysis Elements of a Model 493\u003c\/p\u003e \u003cp\u003eItems in Project Finance Models That Cause Circularity 495\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 40 Funding Techniques in Project Finance and the Associated Circular Reference Problems 497\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eCase 1: No Circular Reference—Pro-Rata Funding, Interest Paid during Construction, and Debt Size from Cash Flow 499\u003c\/p\u003e \u003cp\u003eCase 2: Circular Reference from Pro-Rata Funding with Capitalized Interest or Debt Ratio Input 501\u003c\/p\u003e \u003cp\u003eCase 3: Pro-Rata Funding with Capitalized Fees 506\u003c\/p\u003e \u003cp\u003eCase 4: Cascade with Equity Funded before Debt That Can Be Solved with Backward Induction 508\u003c\/p\u003e \u003cp\u003eCase 5: Bond Financing in a Single Period 513\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 41 Debt Sculpting in a Project Finance Model 515\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eSculpting Method 1: Use of Solver 517\u003c\/p\u003e \u003cp\u003eSculpting Method 2: Goal Seek and Algebra 519\u003c\/p\u003e \u003cp\u003eSculpting Method 3: Net Present Value of Target Debt Service 521\u003c\/p\u003e \u003cp\u003eSculpting Method 4: Backward Induction 524\u003c\/p\u003e \u003cp\u003eSculpting Approaches in Complex Cases with Taxes, Debt Service Reserve Accounts, and Interest Income 526\u003c\/p\u003e \u003cp\u003eSolving Difficult Sculpting Problems with User-Defined Functions 532\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 42 Automating the Goal Seek Process for Annuity and Equal Installment Repayments 539\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eDebt Sizing with Level Repayments or Annuity Repayments Using a Goal Seek Macro 541\u003c\/p\u003e \u003cp\u003eComputing Debt Size for Equal Installment Structuring with a User-Defined Function 542\u003c\/p\u003e \u003cp\u003eComputing Debt Size for Annuity Structure with User-Defined Function 545\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 43 Modeling Debt Service Reserve Accounts 547\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eStructuring the Debt Service Reserve Account in a Project Finance Model 548\u003c\/p\u003e \u003cp\u003eAvoiding Circular References in Funding Debt Service Reserve Accounts through Separating Construction Debt from Permanent Debt 550\u003c\/p\u003e \u003cp\u003eAvoiding Circular References Due to Cash Flow Sweeps and the Debt Service Reserve Account 552\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 44 Modeling Maintenance Reserve Accounts 555\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eMRA Case 1: Constant Maintenance Time Period Increments and Level Expenditures 556\u003c\/p\u003e \u003cp\u003eMRA Case 2: Constant Time Period Increments and Changing Expenditures 557\u003c\/p\u003e \u003cp\u003eMRA Case 3: Varying Time Period Increments and Changing Expenditures Using the MATCH Function 559\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 45 Refinancing and Valuing a Project Given Risk Changes over the Life of a Project 563\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eComputed Internal Rate of Return with Changes in Discount Rate over Project Life 563\u003c\/p\u003e \u003cp\u003eEffects of Refinancing on the Value of a Project 565\u003c\/p\u003e \u003cp\u003eMechanics of Implementing Refinancing into a Project Finance Model 568\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 46 Covenants and Cash Flow Sweeps in Project Finance Models 571\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eMechanics of Modeling Covenants and Cash Flow Sweeps 572\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 47 Asset Portfolios, Progress Payments, and Lease Rolls in Real Estate Models 577\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eModeling a Single Real Estate Project 579\u003c\/p\u003e \u003cp\u003eModeling Multiple Projects That Are Part of a Combined Portfolio with Percent of Time Function 580\u003c\/p\u003e \u003cp\u003eModeling a Portfolio with the INDEX Function and Data Table Tools 584\u003c\/p\u003e \u003cp\u003eAbout the Author 589\u003c\/p\u003e \u003cp\u003eAbout the Website 591\u003c\/p\u003e \u003cp\u003eIndex 593\u003c\/p\u003e  \u003cp\u003e\u003cb\u003eEDWARD BODMER\u003c\/b\u003e is an experienced financial and economic consultant, trainer, and lecturer. He has conducted many training programs around the world to both large corporations and public programs that have covered project finance, corporate finance, energy analysis, and mergers and acquisitions. Formerly, Bodmer was the Vice President at the First National Bank of Chicago, where he directed analysis of energy loans and also created financial modeling techniques used in advisory projects.   \u003c\/p\u003e\u003cp\u003e\u003ci\u003eCorporate and Project Finance Modeling\u003c\/i\u003e is a comprehensive guidebook for creating, interpreting, and analyzing complex financial models. The book offers the information needed to master difficult modeling problems and shows how to build highly structured models from the ground up. Using the suggestions and techniques outlined in this important text, beginners and experienced professionals can hone their skills and take their performance to the next level in order to analyze and create flexible, efficient, and stable model structures. \u003c\/p\u003e\u003cp\u003eEdward Bodmer, an international expert in the field, covers the technical aspects of building and analyzing financial models and presents results from a wide range of alternative models. To gain a clear understanding of the process, the author reveals why particular modeling features are generally included in one kind of model but not in others. \u003c\/p\u003e\u003cp\u003eThe book also introduces unique modeling techniques that address many complex issues that are not typically used by even the most experienced modelers. For example, the author shows how to build user-defined functions to solve circular logic without cumbersome copy and paste macros. The book explains how to derive ratios of enterprise value to earnings before interest, taxes, depreciation, and amortization (EV\/EBITDA) that account for asset life, historical growth, taxes, return on investment, and cost of capital. \u003c\/p\u003e\u003cp\u003eIn addition to explaining how to solve a modeling problem, \u003ci\u003eCorporate and Project Finance Modeling\u003c\/i\u003e explores the finance theory underlying how to construct models with an exact approach. The author addresses modeling issues ranging from the fundamental structure of financial models to the creation of user-defined VBA functions that resolve circular references. Each issue covered includes a theoretical discussion and an explanation of the modeling mechanics as applied to various corporate structures. The book covers a wide range of vital topics including a review of valuation in the context of project finance, corporate finance, and acquisition finance; cash flow waterfalls; credit analysis in corporate and project finance; debt structuring; determination of items that should be in the bridge between enterprise value and equity value; and many other subjects. To enhance the text, the modeling problems are explained with illustrative diagrams and screen shots from actual models. \u003c\/p\u003e\u003cp\u003eThis comprehensive text includes a companion website that contains exercises, model examples, video explanations, and case studies. \u003c\/p\u003e\u003cp\u003eDesigned as a flexible resource, \u003ci\u003eCorporate and Project Finance Modeling\u003c\/i\u003e gives professionals the information needed to borrow subtle concepts from solutions to many different modeling problems so they can apply them to their own models.\u003c\/p\u003e","brand":"Wiley","offers":[{"title":"Default Title","offer_id":47988992901349,"sku":"NP9781118854365","price":68.0,"currency_code":"USD","in_stock":false}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/1842\/7735\/files\/9781118854365.jpg?v=1761782350","url":"https:\/\/k12savings.com\/products\/corporate-and-project-finance-modeling-isbn-9781118854365","provider":"K12savings","version":"1.0","type":"link"}