Advanced Financial Modelling Dr S Vinoth 2016 Batch

Advanced Financial Modelling. Dr. S. Vinoth 2016 Batch & IV Semester

• Internal Mark Distribution Internal Marks – 40 S. No Component Marks Modus Operandi 1. CIA- Mid Semester Test 4 Max: 50 marks; Duration: 2 Hours 2. Model Exam 6 Max: 60 marks; Duration: 3 Hours 3. Assignments 10 Decided by the faculty in-charge of the course 4 Project 10 Decided by the faculty in-charge of the course 5 Record 5 Decided by the faculty in-charge of the course 6 Case Discussions 5 Decided by the faculty in-charge of the course Total 40

• Advanced Financial Modeling – Unit I • Introduction to Financial Modeling • Meaning, Definitions, Features, Applications • Recap of Excel • Data Formatting, Data Representation & Data Analysis. • Major parts of a good financial Model • • • Parts, Do’s & Don’ts Defining Model Objectives Process flow for a Model Identifying inputs and outputs Stress Testing Documentation • Case Study: Title (Reference) • Handout Source: • Text Book:

• Advanced Financial Modeling – Unit II • Financial Modelling for Risk Management • A portfolio with 2 assets & 3 assets • Risk Modeling in a multi asset portfolio • Monte Carlo Simulation • Option Payoff Modeling • Meaning, Terminologies, Types • Option Payoff Modeling • Cash Future Convergence • Modeling • Case Study: Title (Reference) • Handout Source: • Text Book:

• Advanced Financial Modeling – Unit III • Financial Modeling for Valuation and FSA • • • Forecasting Revenues and Costs Projection of Revenues, Costs and other Income Statement Items Projection of Balance Sheet items Select model drivers and assumptions, Creating a dynamic model for Financial Statements, Modeling need for financing in future time, Financial Modeling for Mergers and Acquisitions • Case Study: Title (Reference) • Handout Source: • Text Book:

• Advanced Financial Modeling – Unit IV • Financial Modeling for Debt • Models for Debt Repayment • Modeling Amortizing Loans • EMIs • Financial Modeling for Bonds • Bond Pricing • Clean Price & Dirty Price • Interest rate risk – Duration, Modified Duration • Case Study: Title (Reference) • Handout Source: • Text Book:

• Advanced Financial Modeling – Unit V • Case Studies • • • Financial Planning Tax Calculator Stock Performance Statistical Modeling Z - Table • Case Study: Title (Reference) • Handout Source: • Text Book:

• Assignment Details Assignment No Topic & Questions Start Date Submission Date 1. Define Financial Modeling 2. Define the major features of a Financial Model 1 31. 01. 2018 07. 02. 2018 28. 02. 2018 08. 03. 2018 27. 03. 2018 05. 04. 2018 3. Why is documentation in a model necessary? 4. What are the various ways you can do documentation in a financial model? 1. Modeling for A portfolio with 2 assets & 3 assets 2. Monte Carlo Simulation 2 3. Option Payoff Modeling 4. Cash Future Convergence Modeling 1. Case Study – Financial Planning 3 2. Case Study – Tax Calculator for Financial Year 2017 -18

• Course Project Details • Project on Company Financial Modelling • Project Procedure • Select non-financial or banking company form NSE/BSE (Use same company was used in ACF Project) • Select Financial data of the company with assumptions • Create a Financial Model for a Company and Forecast its future financials • Start Date: 17. 03. 2018 • Submission Format: Excel Sheet • Submission Date: 31. 03. 2018 • Evaluation Procedure: Internal by the subject faculty