MFE 816: 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

Software Requirements

Proctored Exams

Course Description

The course focuses primarily on developing spreadsheet applications and using the case method to apply decision-making procedures to real-world problems in finance areas. Students will be exposed to spreadsheets throughout the course to develop models that can be used in the financial decision-making process. Important financial topics such as financial ratio analysis, financial forecast, regression analysis, portfolio management, asset valuation, risk management, and capital budgeting decisions will be covered. Students will access market data through the internet and proprietary providers. Students will apply advanced skills such as Data Analysis tools, Advanced reporting, Monte Carlo simulation, and user-defined functions and macros. An overview of a scripting programming language in financial analysis/research will also be included.

Course Requirements and Grading

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

Exams: All exams are given in Canvas. They will be due on Sunday in the week labeled for the exam (unless otherwise indicated). The exam is split into two parts, and you will have two 150-minute windows of time in which to take the exam. Once the 150 minute window begins, the timer cannot be stopped. You should allow sufficient time to begin the exam 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 will only be allowed 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. Discussion forums: There are six week-based discussion forums (top five grades will be counted) listed under the course schedule. The grading rubric for these forums is posted in the Course Orientation and in each forum. You should review this rubric before participating in the discussions. The purpose of these forums is for you to have a chance to discuss topics related to the lesson during a given week. I want you to draw from your own experiences and personal research on these topics. Each student will be required to post 4-5 responses throughout the week. You may answer the questions in the post or you may respond to another student’s comment, but all of your responses must be professional in nature. You must stay on topic and not stray from the subject being discussed. In any discussion forums, please feel free to post any topic that interests you and is related to the course materials. I may participate in these forums by making comments when it appears appropriate. ​ Overall Rules for online discussions: Please make sure to check the detailed discussion forum rubrics. Weekly Exercises: There will be 15 weekly exercises. Each exercise is worth 10-20 points. Only the top 14 exercises will count. 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 – 120 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 3-5 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, 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.