{"product_id":"financial-modeling-fifth-edition-isbn-9780262046428","title":"Financial Modeling, fifth edition","description":"\u003cb\u003eA substantially updated new edition of the essential text on financial modeling, with revised material, new data, and implementations shown in Excel, R, and Python.\u003c\/b\u003e\u003cbr\u003e\u003cbr\u003e\u003ci\u003eFinancial Modeling\u003c\/i\u003e has become the gold-standard text in its field, an essential guide for students, researchers, and practitioners that provides the computational tools needed for modeling finance fundamentals. This fifth edition has been substantially updated but maintains the straightforward, hands-on approach, with an optimal mix of explanation and implementation, that made the previous editions so popular. Using detailed Excel spreadsheets, it explains basic and advanced models in the areas of corporate finance, portfolio management, options, and bonds. This new edition offers revised material on valuation, second-order and third-order Greeks for options, value at risk (VaR), Monte Carlo methods, and implementation in R. The examples and implementation use up-to-date and relevant data.\u003cbr\u003e \u003cbr\u003eParts I to V cover corporate finance topics, bond and yield curve models, portfolio theory, options and derivatives, and Monte Carlo methods and their implementation in finance. Parts VI and VII treat technical topics, with part VI covering Excel and R issues and part VII (now on the book’s auxiliary website) covering Excel’s programming language, Visual Basic for Applications (VBA), and Python implementations. Knowledge of technical chapters on VBA and R is not necessary for understanding the material in the first five parts. The book is suitable for use in advanced finance classes that emphasize the need to combine modeling skills with a deeper knowledge of the underlying financial models.Preface and Acknowledgments xix\u003cbr\u003eBefore All Else 1\u003cbr\u003eI Corporate Finance 13\u003cbr\u003e1 Basic Financial Analysis 15\u003cbr\u003e2 Corporate Valuation Overview 53\u003cbr\u003e3 Calculating the Weighted Average Cost of Capital (WACC) 73\u003cbr\u003e4 Pro Forma Analysis and Valuation Based on the Discounted Cash Flow Approach 111\u003cbr\u003e5 Building a Pro Forma Model: The Case of Merck 145\u003cbr\u003e6 Financial Analysis of Leasing 161\u003cbr\u003eII Bonds 177\u003cbr\u003e7 Bond's Duration 179\u003cbr\u003e8 Modeling the Term Structure 207\u003cbr\u003e9 Calculating Default-Adjusted Expected Bond Returns 231\u003cbr\u003eIII Portfolio Theory 253\u003cbr\u003e10 Portfolio Models--Introduction 255\u003cbr\u003e11 Efficient Portfolios and the Efficient Frontier 287\u003cbr\u003e12 Calculating the Variance-Covariance Matrix 337\u003cbr\u003e13 Estimating Betas and the Security Market Line 357\u003cbr\u003e14 Event Studies 377\u003cbr\u003e15 The Black-Litterman Approach to Portfolio Optimization 405\u003cbr\u003eIV Options 435\u003cbr\u003e16 Introduction to Options 437\u003cbr\u003e17 The Binomial Option Pricing Model 459\u003cbr\u003e18 The Black-Scholes Model 499\u003cbr\u003e19 Option Greeks 537\u003cbr\u003e20 Real Options 569\u003cbr\u003eV Monte Carlo Methods 591\u003cbr\u003e21 Generating and Using Random Numbers 593\u003cbr\u003e22 An Introduction to Monte Carlo Methods 639\u003cbr\u003e23 Simulating Stock Prices 661\u003cbr\u003e24 Monte Carlo Simulations for Investments 689\u003cbr\u003e25 Value at Risk (VaR) 715\u003cbr\u003e26 Replicating Options and Option Strategies 733\u003cbr\u003e27 Using Monte Carlo Methods for Option Pricing 765\u003cbr\u003eVI Technical 829\u003cbr\u003e28 Data Tables 831\u003cbr\u003e29 Matrices 849\u003cbr\u003e30 Excel Functions 859\u003cbr\u003e31 Array Functions 905\u003cbr\u003e32 Some Excel Hints 919\u003cbr\u003e33 Essentials of R Programming 951\u003cbr\u003eSelected References 963\u003cbr\u003eIndex 975“\u003ci\u003eFinancial Modeling\u003c\/i\u003e demonstrates how Excel and other computational tools facilitate complex problem-solving. The fifth edition clarifies the exposition of some earlier material and adds R and Python to the toolkit. It’s a must-have for finance students, scholars, and modeling professionals.”\u003cbr\u003e—\u003cb\u003eRobert A. Taggart, Professor Emeritus, Finance, Carroll School of Management, Boston College\u003c\/b\u003e\u003cbr\u003e \u003cbr\u003e“\u003ci\u003eFinancial Modeling\u003c\/i\u003e is the most comprehensive Excel textbook for finance applications. I have consistently used previous editions of this book in my modeling courses over the last 15 years. The detailed coverage of VBA and R in this edition is ideal for finance students at any level.”\u003cbr\u003e—\u003cb\u003ePatrick Cusatis, Associate Professor of Finance, Penn State University\u003c\/b\u003e\u003cbr\u003e \u003cbr\u003e“An excellent resource on modeling for corporate finance, bonds, portfolio theory, options, and Monte Carlo simulation methods. \u003ci\u003eFinancial Modeling\u003c\/i\u003e is valuable for instructors and students at both undergraduate and graduate levels, and I highly recommend it.”\u003cbr\u003e—\u003cb\u003e\u003ci\u003eCara Marshall, Lecturer and Director of the Risk Management Graduate Program, Queens College, CUNY\u003c\/i\u003e\u003c\/b\u003eThe late \u003cb\u003eSimon Benninga\u003c\/b\u003e was Professor of Finance and Director of the Sofaer International MBA program at the Faculty of Management at Tel-Aviv University. For many years he was a Visiting Professor at the Wharton School of the University of Pennsylvania. \u003cb\u003eTal Mofkadi\u003c\/b\u003e is an Assistant Professor in the School of Finance in the Faculty of Management at Tel Aviv University, University of Amsterdam, and Nagoya University of Business and Commerce, and the managing partner of Numerics, an economic and financial consultancy firm.","brand":"The MIT Press","offers":[{"title":"Default Title","offer_id":46300893610213,"sku":"NP9780262046428","price":125.0,"currency_code":"USD","in_stock":false}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/1842\/7735\/files\/9780262046428.jpg?v=1767726879","url":"https:\/\/k12savings.com\/products\/financial-modeling-fifth-edition-isbn-9780262046428","provider":"K12savings","version":"1.0","type":"link"}