Financial Modeling

Overview:

Introduction:

Financial modeling is the core skill required for Investment Banking, Equity Research, Portfolio Management, Project Finance, Credit Research, Financial Planning & Analysis, etc.The best way to learn financial modeling is to practice. It takes years of experience to become an expert at building a financial model and you really have to learn by doing. Reading equity research reports can be a helpful way to practice, as it gives you something to compare your results to.

Course Objectives:

At the end of this course the participants will be able to:

• Define the world of finance

• Explain the cash flows and investor returns for different asset classes

• Understand the information in the financial reports of organizations

• Describe internal budgeting control performance evaluation and project analysis

• Determine how to make big investment decisions based on costs and benefits

• Specify investment options and their purpose

Targeted Audience:

• Head of Departments

• Managers

• Finance Professionals who want to enhance their skills

Course Outlines:

Unit 1: Introduction to Financial Markets

• Use the key elements of financial markets to make investment decisions

• Explain factors that affect a market's efficiency

• Discuss how transparency and disclosure ensure the integrity of financial markets

• Determine the economic impacts of inflation.

Unit 2: The Language of Investments

• Explain what the role of securities is in financing an organization

• Compare the rates of return of simple versus compound interest

• Calculate the expected present and future value of a fixed income.

Unit 3: The Language of Financial Reports

• Identify balance sheet and income statement account categories

• Relate them to the financial performance of the organization.

• Assess the financial statements of an organization

• Including measuring key attributes to make cross-sectional and time series comparisons.

Unit 4:Management Accounting and Project Analysis

• Distinguish between total variance

• Price variance and quantity variance

• Explain how you would prioritize a series of capital projects.

Unit 5: Corporate Finance

• Identify the difference between an annuity and perpetuity

• Appraise an investment project using the four investment decision rules.

• Reflect on how market expectations move markets