FIN 416: Inter Financial Modeling

Textbook Information

Financial Analysis with Microsoft Excel, 9th Edition, Timothy R. Mayes, published by Cengage Learning. ISBN: 978-0-357-44205-0

Published Remarks

  • None

Hardware Requirements

  • None

Software Requirements

  • None

Proctored Exams

  • None

Course Description

The topics covered in this course build on the foundations of corporate finance presented in FIN 301, Corporate Finance. Specifically, the course focuses primarily on the development of spreadsheet applications and the use of the case method to apply decisionmaking procedures to real-world problems in finance areas. The primary objective of this course is to "marry" corporate finance theory with practice. Students should develop the ability to use finance concepts to solve practical finance problems. Throughout the course, students will be exposed to spreadsheets (e.g., Microsoft Excel) to develop models used in the financial decision-making process. The course will enable students to build a firm foundation in the principles of financial management and an understanding of how to apply concepts in financial management for the valuation process. Students will work as a group for a semester-long project, which will expose students to critical topics such as financial ratio analysis, financial forecasting, regression analysis, portfolio management, asset valuation, capital budgeting decisions via spreadsheets. Students will access market data through the internet and proprietary providers such as Bloomberg and Y-Charts.

Enforced Prerequisite at Enrollment: FIN 301

Course Description and Objectives

This course focuses primarily on the development of spreadsheet applications and the use of the case method to apply decision-making procedures to real world problems in finance areas. The primary objective of this course is to “marry” corporate finance theory with practice. You should develop the ability to use finance concepts to solve practical finance problems. We will study a number of concepts, including: time-value-of-money, financial statements, risk and return, and capital budgeting. Additionally, we will focus on the use of a spreadsheet (e.g., Microsoft Excel) to develop models that can be used in the financial decision-making process. Therefore, in addition to learning and applying finance concepts, you will also improve and refine your computer skills. After completing this course, you should:

  • have enhanced knowledge primarily in the areas of corporate finance and investments;
  • have improved analytical skills and problem solving ability through spreadsheet developments;
  • be able to explore and better understand current issues in finance;
  • be able to apply Excel skills to solve finance problems.

The course employs different methods (such as spreadsheet development, case study, project, etc.) in achieving these goals. Acknowledgments: Special thanks go to Mrs. Grace Chang and Ms. Brianna Bernik in the development of this course.

Course Structure

The course will be structured along the following Modules.

  • Module 00: Course Introduction/Orientation
  • Module 01: Excel Basics
  • Module 02: The Basic Financial Statements
  • Module 03: Financial Statements Analysis Tools
  • Module 04: Financial Statement Forecasting
  • Module 05: Time Value of Money
  • Exam 1
  • Module 06: Common Stock Valuation
  • Module 07: Cost of Capital
  • Module 08: Capital Budgeting
  • Exam 2
  • Module 09: Introduction to Advanced Excel Skills: VBA and Pivot Tables
  • Final Project Report and Presentation

Course Requirements and Grading

Assignment Breakdown Points Percentage
Exam 1 50 12.5%
Exam 2 50 12.5%
Exercises (10-20 points each) 200 50%
Final Project 100 25%
Total 400 100%
Help Forum (1 point each) 8 2%

Exams: All exams are given in Canvas. They will be due on Sunday in the week labeled for the exam (unless otherwise indicated) and you will have a 180 minute window of time in which to take the exam. You can choose when you want your 180 minute window of time anytime during exam week, and the exam must be completed in one sitting. Once the 180 minute window begins, the timer cannot be stopped. Also, you must begin the exam before 9:00 PM EST on Sunday because all exams will be automatically submitted at 11:55 PM EST on the listed due date on the course schedule. Alternate windows of time are available only if a documented work conflict exists. It is the student’s responsibility to alert the instructor about the work-related conflict 1 week in advance or no alternate times will be made available. Exam 1 will cover Modules 1-5, and exam 2 will cover Modules 6-8. Exercises: There will be 11 weekly exercises. Each exercise is worth 10-20 points. No make-up exercises will be given for any reason. The purpose of these exercises is to test your understanding of the subject matter. The exercises are timed (typically you have to finish and submit the exercise 60 minutes after you open the exercise). You will only be able to take each exercise once. You will be required to work on an Excel problem, upload the file, and enter the solutions in the exercise according to the format requirements. After the due date, you will be able to use the exercise as a review tool for the exam. Please check grading rubrics of exercises for details. Homework and Review Questions: End-of-chapter problems will be assigned for each chapter but not collected or graded. There are review questions in each chapter for the exercises. You are strongly encouraged to review these questions before opening each exercise. Final Project: You will be randomly divided into groups of 5 students in the first week of classes. Student teams will choose one publicly traded company and do research on the company throughout the semester including financial ratio analysis, financial statement forecast, time value of money, stock valuation, and estimation of weighted average cost of capital. Each team will submit three stage reports, a final report and make a presentation at the end of the semester. The term project is 100 points in total, which is 25% of your final grade.

Assignment Breakdown Points Percentage of Final Grade
1st Stage Report: Company Selection 10 2.5%
2nd Stage Report: Financial ratio analysis and pro forma analysis 25 6.25%
3rd Stage Report: WACC estimation and stock valuation 25 6.25%
Final Report: Comprehensive Financial Summary 25 6.25%
Final Presentation 15 3.75%
Total 100 25%

You are required to submit peer evaluations on all of your team members (including yourself) in the weeks when three stage reports and final report due.  You can access the Peer Evaluations by selecting the WD Peer Evaluation link in the left side Canvas Course Navigation Menu.  Then select Peer Evaluations for Team Project. The WD Peer Evaluation link will only be visible during the week when these reports are due.