FIN 4931 – Special Topics in Finance

Spring 2012

Financial Modeling

Description: This course will teach the user intense excel-based financial modeling. Tentative topics are:

  • Basic excel functions
  • Using array functions and formulas
  • Calculating the cost of capital
  • Financial statement modeling
  • Building a financial model
  • Introduction to portfolio models
  • Estimating betas and the security market line
  • Event studies
  • Value at risk
  • An introduction to options
  • The Black-Scholes Model
  • Option greeks
  • An introduction to Monte Carlo methods
  • Modeling the term structure
  • Generating random numbers
  • Data tables

Financial modeling is not for the faint of heart! While we start with some basic functions, the course involves very advanced finance from other finance courses. Therefore, an understanding of basic corporate finance, investment, and derivatives theories is assumed and not the focus of this course. Rather, the focus in this course is on teaching the user how to model a particular financial theorem in excel. For example, you will learn how to estimate betas and the security market line in excel, but an understanding of the topic is assumed.

Note several important points:

  • This course is permission of instructor only, with a maximum enrollment of six students.
  • The course will be project-based. This means students will be randomly assigned specific topics. Students will have to either find data or will be provided data to illustrate these topics and teach them to the remainder of the class. Each student will have between seven and ten projects throughout the semester.
  • The course grade will be determined based on the project presentations, participation and take-home exams.
  • Students in the course must have laptops, and they must have at least Excel 2007 on their laptops.
  • The textbook for the course will be Simon Benninga’s Financial Modeling, 3e.

FIN 4931 – Financial Modeling

Spring 2012 Application

Name: ______Phone Number: ______

N-number: ______Email address: ______

I am a (highlight or circle): JuniorSenior

Expected graduation date: ______

In what area of finance do you ultimately hope to work? ______

Rate your knowledge of excel on a scale of 1-10 (1 = know nothing about excel, 10 = know everything about excel): ______

In this course, each student will be expected to give frequent presentations to the class to illustrate certain functions in excel. On a scale of 1-10, rate your presentation ability (1 = no skills at all, 10 = best presenter on the planet): ______

With which are you more comfortable (highlight or circle one):

Written communicationOral communication

What aspects of excel (i.e., functions or broad areas) do you hope to learn in this course?

How many courses are you planning on taking in the Spring Semester of 2012? ______

Are you currently employed (highlight or circle one)? Yes, full timeYes, part time No

I own a laptop. (Y / N)

I have either Excel 2007 or Excel 2010 installed on my laptop. (Y / N)

In the Spring of 2012, only six students will be selected for this course. In addition to the application, Dr. Schnusenberg will schedule an interview with you. This interview should last about 30 minutes. Please indicate which day(s) of the week and which time would be most convenient for you by circling or highlighting the day(s) and am or pm.

MTWRF

Am PM Am PM Am PM Am PM Am PM

Applications will be accepted until Friday, November 4, 2011 at 5pm. Please email your application to . You will be informed of the decision by email by November 8, 2011.