Advanced Financial Modelling IV Semester Finance Paper Practical

Advanced Financial Modelling IV Semester – Finance Paper (Practical – Lab Based) Course Faculty: S. Vinoth Teaching Hours : 5 Hours + 2 Hours* (For watching videos)

Advanced Financial Modelling • Course Objective: • The course aims to enable students to use and implement Financial Modeling to solve practical problems along the breadth of Financial Industry • Laptop Compulsory for Classes Unit – I (8 hours) • Introduction to Financial Modeling – What is Financial Modeling? , • Recap of Major Functions in Excel, Accuracy, Flexibility & User-friendliness of Financial models, Defining Model objectives, • Setting up modules, • Identifying inputs and variables, • Defining deliverables and functionality, • Stress testing Models and Model Documentation 2

Advanced Financial Modelling Unit – II (14 hours) • Financial Modeling for Risk Management • Multi Asset Class Portfolio Performance Reporting, • Regression Analysis, • Monte Carlo Simulation, • Derivatives and Pricing using Excel, • Option Greeks Modeling in Excel. • Financial Modeling for Credit Default Swaps 3

Advanced Financial Modelling Unit – III (8 hours) • Financial Modeling for Valuation and Statement Analysis • Financial Statement modelling Projection of Revenues, • Costs and other Income Statement and 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. 4

Advanced Financial Modelling Unit – IV (6 hours) • Financial Modeling for Debt Repayment • Models for Debt repayment, • Modeling Amortizing Loans, • EMIs, • Financial Modeling for Bonds and Bond Pricing 5

Advanced Financial Modelling Unit – V (12 hours) Exercises and Tutorials Exercises on various financial modeling problems Cases 6

Advanced Financial Modelling Unit – V (12 hours) Exercises and Tutorials Exercises on various financial modeling problems Cases 7

Advanced Financial Modelling Fin. Shiksha Videos, Handouts, Worksheets Text Book: 1. Simon Benninga(2008), Financial Modelling with Excel, 3 rd Edition. , MIT Press. Reference Book: 1. Bill Dalton, Financial Products-An Introduction using Mathematics and Excel, Cambridge. 2. Danielle Stein Fairhurst, Using Excel for Business Analysis: A Guide to Financial Modelling Fundamentals, 3. Wiley Alastair Day, Mastering Financial Modelling in Microsoft Excel 3 rd Edn: A Practitioner's Guide to Applied Corporate Finance (3 rd Edition), FT Press, 2012. 8

Advanced Financial Modelling Marks Distribution – Total 100 Marks • External Examination (Practical's) – 75 Marks • Internal - 25 Marks • CIA - 50 Converted to 4 Marks • Model - 75 Converted to 6 Marks • Video Assignments 3 Marks • Quizzes 2 Marks • Project 5 Marks • Attendance 5 Marks 9

Thank You 10