Principles of Finance with Excel

Description

• Focuses on Excel throughout, which allows students to understand finance by manipulating the numbers themselves
• Features a progressive development of topics, with Excel instructions and tips offered as they are needed
• Covers advanced topics in chapter appendixes
• Illustrates concepts with concrete examples
• Incorporates numerous exercises, ranging from the simple to the complex for every chapter
• Includes an Excel primer at the end of the book (Chapters 21-26)

About the Author(s)

Simon Benninga, Professor of Finance and Director of the Sofaer International MBA program, Faculty of Management, Tel Aviv University, and Tal Mofkadi, Lecturer, Tel Aviv University; Co-Founder, Numerics Economic and Financial Consulting; and Visiting Professor, University of Amsterdam, Vienna University of Economics and Business, and Nagoya University of Commerce and Business

The late Simon Benninga was Professor of Finance and Director of the Sofaer International MBA program at the Faculty of Management at Tel Aviv University, a program he founded. Tal Mofkadi is Lecturer at Tel Aviv University and Co-Founder of Numerics Economic and Financial Consulting. He is also a Visiting Professor at the University of Amsterdam, Vienna University of Economics and Business, and Nagoya University of Commerce and Business.

Table of Contents

Part One: Capital Budgeting and Valuation
1. Introduction to Finance
2. The Time Value of Money
Appendix 2.1. Algebraic Present Value Formulas
Appendix 2.2. Annuity Formulas in Excel
3. Measures for Evaluation of Investment Opportunities
4. Loans and Amortization Tables
5. Effective Interest Rates
6. Capital Budgeting: Valuing Business Cash Flows
Part Two: Portfolio Analysis and the Capital Asset Pricing Model
7. What is Risk?
8. Statistics for Portfolios
Appendix 8.1. Downloading Data from Yahoo
9. Portfolio Diversification and Market Risk
10. Risk Diversification and the Efficient Frontier
Appendix 10.1. Deriving the Formula for the Minimum Variance Portfolio
Appendix 10.2. Portfolios with Three and More Assets
11. The Capital Asset Pricing Model (CAPM) and the Security Market Line (SML)
12. Measuring Investment Performance
13. The Security Market Line (SML) and the Cost of Capital
Part Three: Valuing Securities
14. Efficient Markets—Some General Principles of Security Valuation
15. Bond Valuation
16. Stock Valuation
Part Four: Options
17. Introduction to Options
18. Option Pricing Facts and Arbitrage
19. Option pricing: The Black-Scholes Formula
Appendix 19.1 Getting Option Information from Yahoo
20.The Binomial Option Pricing Model
Part Five: Excel Skills
21. Introduction to Excel
22. Graphs and Charts in Excel
23. Excel Functions
24. Using Data Tables
25. Using Goal Seek and Solver
26. Working with Dates in Excel

Reviews

"Principles of Finance with Excel is simply the best book available for teaching financial principles using Excel. Its main competitors don't even come close." - Steve Slezak, Cal Poly

"I use Principles of Finance with Excel because I am really convinced that Excel is an extraordinary tool to teach finance. First, it helps painlessly solve problems that involve tedious computations. Second, it forces students to frame a problem in a way that fits with Excel. The major strength of this text is that it allows students to understand finance almost effortlessly." - Fabrice Riva, Université Lille 1, France

"This text provides students with an introduction to Excel skills and a good review on finance. It also helps them prepare for job markets. The third edition is more organized and focused." - Lei Gao, University of Memphis