Includes bibliographical references (pages 1073-1083) and index.

Before all else
Basic financial calculations
Corporate valuation overview
Calculating the weighted average cost of capital (WACC)
Valuation based on the consolidated statement of cash flows
Pro forma financial statement modeling
Building a pro forma model : the case of Caterpillar
Financial analysis of leasing
Portfolio models : introduction
Calculating efficient portfolios
Calculating the variance-covariance matrix
Estimating betas and the security market line
Efficient portfolios without short sales
The Black-Litterman approach to portfolio optimization
Event studies
Introduction to options The binomial option pricing model
The Black-Scholes model
Option Greeks
Real options
Duration
Immunization strategies
modeling the term structure
Calculating default-adjusted expected bond returns
Generating and using random numbers
An introduction to Monte Carlo methods
Simulating stock prices
Monte Carlo simulations for investments
Value at risk (VaR)
Simulating options and option strategies
Using Monte Carlo methods for option pricing
Data tables
Matrices
Excel functions
Array functions
Some Excel hints
User-defined functions with VBA
Variables and arrays
Subroutines and user interaction
Objects and add-ins. Machine generated contents note
Exercises

Financial Modeling is now the standard text for explaining the implementation of financial models in Excel. This long-awaited fourth edition maintains the "cookbook" features and Excel dependence that have made the previous editions so popular. As in previous editions, basic and advanced models in the areas of corporate finance, portfolio management, options, and bonds are explained with detailed Excel spreadsheets. Sections on technical aspects of Excel and on the use of Visual Basic for Applications (VBA) round out the book to make Financial Modeling a complete guide for the financial modeler. The new edition of Financial Modeling includes a number of innovations. A new section explains the principles of Monte Carlo methods and their application to portfolio management and exotic option valuation. A new chapter discusses term structure modeling, with special emphasis on the Nelson-Siegel model. The discussion of corporate valuation using pro forma models has been rounded out with the introduction of a new, simple model for corporate valuation based on accounting data and a minimal number of valuation parameters.