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Course Syllabus

Master 2023/2024

Financial Modelling in a Firm

Category 'Best Course for Broadening Horizons and Diversity of Knowledge and Skills'
Category 'Best Course for New Knowledge and Skills'
Type: Elective course (Strategic Corporate Finance)
Area of studies: Finance and Credit
Delivered by: School of Finance
Where: Faculty of Economic Sciences
When: 1 year, 3 module
Mode of studies: offline
Open to: students of one campus
Instructors: Egor Gordeychuk, Maria S. Kokoreva
Master’s programme: Strategic Corporate Finance
Language: English
ECTS credits: 3
Contact hours: 32

Course Syllabus

Full Syllabus

Abstract

The Financial Modelling in a Firm Course is aimed to provide students with the skills necessary for applying excel as a tool to provide models to make corporate financial decisions. The course explores the best practices of financial modelling according the existent modelling guidelines. Students will learn how to build a financial model, how to create a correct system of financial statements and forecast the changes in firm’s future cash flows under different scenarios. Using practical cases, you will find out how to build financial models that are flexible, appropriate, transparent and structured and correspond to the specific financial question. You will also discuss how to make a model user-friendly and audit the quality of the models. Finally, you will get acquainted with the methods of model presentation to the different types of audience.Recommended Prerequisites:Corporate Finance-1,2, International Financial Reporting Standards
Learning Objectives

Learning Objectives

  • How to use financial models in decision support in corporate finance
  • To learn best practices of model's design and planning
  • The techniques of buidling flexible and intuitive model in Excel
  • To learn practices of model testing and auditing, including designing robust and transparent formulae
  • To learn how to deal with circularity in the model
  • How to incorporate sensitivity and scenario analysis, uncertainties and risks.
  • Practice to use VBA macros and ModelRisk Excel add-on to conduct sensitivity and scenario analysis
  • The ways of model presenting: dashboards and charts
  • How to use valuation techniques and estimate intrinsic value of equity using finanicla models
Expected Learning Outcomes

Expected Learning Outcomes

  • Be able to apply models for financial decision-making
  • Be able to explain how the valuation technics could help in financial modelling
  • Be able to create a template in Excel, that will allow building a model that is flexible and intuitive
  • Be able to incorporate scenario analysis in forecasting firm’s future cash flows
  • Be able to check that the model is correct
  • Be able to audit the model
  • Be able to present a model using a dashboard, charts, etc.
Course Contents

Course Contents

  • 1. Introduction to financial modelling
  • 2. Building a model. Financial statements
  • 3. Forecasting. Financing, discount rate and DCF
  • 4. Model analysis and auditing
    The experts in financial modelling participate in this block.
  • 5. Best practices of financial modelling applications
    The financial modelling experts participate in this block
Assessment Elements

Assessment Elements

  • non-blocking Cases set 1
    The cases set is a team assignment and consists of 2 cases. Each case has similar weight. To get a grade, a member of the team should participate in case solving and presenting and discussing at class. Those who do not attend the case discussion, get zero.
  • non-blocking Cases set 2
    The cases set is a team assignment and consists of 2 cases. Each case has similar weight. To get a grade, a member of the team should participate in case solving and presenting and discussing at class. Those who do not attend the case discussion, get zero.
  • non-blocking Model development. Final case.
  • non-blocking A model audit. Final case.
    The peer model audit
Interim Assessment

Interim Assessment

  • 2023/2024 3rd module
    0.18 * A model audit. Final case. + 0.28 * Cases set 1 + 0.28 * Cases set 2 + 0.26 * Model development. Final case.
Bibliography

Bibliography

Recommended Core Bibliography

  • Financial modeling : with a section on Visual Basic for Applications, Benninga, S., 2000
  • Investment valuation : tools and techniques for determining the value of any asset, Damodaran, A., 2012

Recommended Additional Bibliography

  • Ian Beaman, Erwin Waldmann, & Peter Krueger. (2005). The impact of training in financial modelling principles on the incidence of spreadsheet errors. Accounting Education, (2), 199. https://doi.org/10.1080/0963928042000229699
  • Satran, R. (2013). Breaking Into Wall Street. U.S. News Digital Weekly, 5(17), 8.

Authors

  • KOKOREVA MARIYA SERGEEVNA