Кто читает:: Банковский институт

Статус:: Курс по выбору

Когда читается:: 2-й курс, 3 модуль

Abstract

Long-term projects require a thorough analysis, negotiations with investors, lenders, and partners. The financial model in MS Excel is the most important tool for planning, structuring, and analysis of a project. Here you pull up and summarize all available information on your expectations and forecast. Quality of your model defines the precision of your decisions and your ability to convince the other participants of the project. In this course you will learn how to build for your project a financial model with all reports and ratios that used in project finance. We will go through the path from a blank Excel workbook, discuss the best practice for financial modeling, dig into technical and financial aspects of the methods and ratios that we use in the model. Within the course we will work with a typical project finance model, but this model has a wide range of possible applications. The same structure and principles could be used for any project to create a new business, launch a product or for venture investments. You will see that the approach we use is universal and the model we build in the course can be your template for many future projects. The course is aimed at students with some experience in Excel. We will not be learning the basics of spreadsheets or MS Excel interface, but all special functions and services will be presented and explained before we use them in our model. All stages the development of the model will be supplemented with Excel files, so by the end of the course you will have both new skills and ready professional financial models. During the last week of the course you will develop your capstone project – your own financial model.

Learning Objectives

To be able to create financial models in accordance with the best practices.

Expected Learning Outcomes

Set up a first model and add elements that will serve as building blocks for the content for the model.
Be able to create correct and transparent model for expected sales, costs, and CAPEX of a project.
Be able to calculate such important indicators as NPV or IRR, as well as to analyze the income expected beyond the range of the model.
Be able to work with three main financial reports and understand relations between project assumptions and those reports, choose a target capital structure, model a loan and generate an acceptable schedule to repay the loan.
Perform a fully-fledged what-if analysis and present a broad range of possible scenarios in one model.
Finalize the model and add an executive summary to get a ready product for presentation of the project and negotiations with investors and creditors.

Course Contents

Introduction and general principles
Financial modeling process covers many issues related to the content of your model: forecasts, costs, investments, reports, and charts. During the work your attention will be focused on this data, and meantime the model will be generating thousands of cells with numbers and ratios, going through revisions and even being passed from one analyst to another. You should adhere commonly accepted rules and approaches to keep your model error-free, neat, and transparent.
Assumptions
It is your assumptions that define reliability of your analysis, so the assumptions are one of the most important parts of a model. They fulfil two roles: provide data for the calculations and reports and link the model with research and analysis supporting your forecast. Every project is unique; there is no standard template for assumptions that fits them all.
Reports and financing
Financial reports help you present the projects in a standardized form which makes all communications with investors and partners easier and faster.
Analysis and presentation
Discounted cash flow analysis is a vital part of financial models for any capital investment – therefore the whole model is often called DCF model. Now, when we have a complete forecast of our project, we are ready to answer the key question – is it profitable?
What-if analysis
No project goes exactly as it was planned. In the model, we describe not certain future cash flows, but just a scenario that we believe is the most probable outcome of the project. Life can change these chances, and other participants of the project can see those scenarios differently.
Capstone project

Assessment Elements

Graded Test 1
All tests will be available at once on the SmartLMS platform, meaning that you may take a test on any day, at any time before the deadline. The deadline for each test is on the day before the webinar (with the exception of test 1). All tests have set time and attempts limits for completion.
Graded Test 2
All tests will be available at once on the SmartLMS platform, meaning that you may take a test on any day, at any time before the deadline. The deadline for each test is on the day before the webinar (with the exception of test 1). All tests have set time and attempts limits for completion.
Graded Test 3
All tests will be available at once on the SmartLMS platform, meaning that you may take a test on any day, at any time before the deadline. The deadline for each test is on the day before the webinar (with the exception of test 1). All tests have set time and attempts limits for completion.
Graded Test 4
All tests will be available at once on the SmartLMS platform, meaning that you may take a test on any day, at any time before the deadline. The deadline for each test is on the day before the webinar (with the exception of test 1). All tests have set time and attempts limits for completion.
Graded Test 5
All tests will be available at once on the SmartLMS platform, meaning that you may take a test on any day, at any time before the deadline. The deadline for each test is on the day before the webinar (with the exception of test 1). All tests have set time and attempts limits for completion.
Graded Test 6
All tests will be available at once on the SmartLMS platform, meaning that you may take a test on any day, at any time before the deadline. The deadline for each test is on the day before the webinar (with the exception of test 1). All tests have set time and attempts limits for completion.
Final Project
The final project is done in a group/individual (will be clarified). You will apply your knowledge to your case to build a financial model.

Interim Assessment

2024/2025 3rd module
0.52 * Final Project + 0.08 * Graded Test 1 + 0.08 * Graded Test 2 + 0.08 * Graded Test 3 + 0.08 * Graded Test 4 + 0.08 * Graded Test 5 + 0.08 * Graded Test 6

Bibliography

Recommended Core Bibliography

Fletcher, S., & Gardner, C. (2009). Financial Modelling in Python. Chichester, West Sussex: Wiley. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsebk&AN=346409
Michael Rees. (2018). Principles of Financial Modelling : Model Design and Best Practices Using Excel and VBA. Wiley.

Recommended Additional Bibliography

Day, A. L. (2012). Mastering Financial Modelling in Microsoft Excel 3rd Edn : A Practitioner’s Guide to Applied Corporate Finance (Vol. Third edition). Harlow: FT Press. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsebk&AN=1419889
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
Rees, M. (2008). Financial Modelling in Practice : A Concise Guide for Intermediate and Advanced Level. Hoboken, NJ: Wiley. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsebk&AN=319172
Spronk, J., & Hallerbach, W. (1997). Financial modelling: Where to go? With an illustration for portfolio management. European Journal of Operational Research, (1), 113. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsrep&AN=edsrep.a.eee.ejores.v99y1997i1p113.125

Authors

Kuziukova Iuliia Igorevna
ILIN ALEKSEY BORISOVICH
ELIZAROVA IRINA NIKOLAEVNA

Магистерская программа «Финансы»

Financial Modelling

Course Syllabus