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Principles of Finance with Excel

Third Edition

Simon Benninga and Tal Mofkadi

Publication Date - 24 August 2017

ISBN: 9780190296384

792 pages
7-1/2 x 9-1/4 inches

In Stock

A practical introduction to finance, tightly integrated with Excel for a "learn by doing" approach


Offering exceptional resources for students and instructors, Principles of Finance with Excel, Third Edition, combines classroom-tested pedagogy with the powerful functions of Excel software. Authors Simon Benninga and Tal Mofkadi show students how spreadsheets provide new and deeper insights into financial decision making.

The third edition of Principles of Finance with Excel covers the same topics as standard financial textbooks--including portfolios, capital asset pricing models, stock and bond valuation, capital structure and dividend policy, and option pricing. For each topic, the authors provide step-by-step instruction on how to use Excel functions to help with relevant decision-making. A separate section of PFE (Chapters 21-26) reviews all Excel functions used in the book, including graphs, function data tables, dates, Goal Seek, and Solver.

Visit www.oup.com/us/benninga for student and instructor resources, including all the spreadsheets used as examples in the text and in the end-of-chapter problems.

New to this Edition

  • Offers streamlined content (reduced by three chapters) that allows students to dive right into the heart of finance: time value of money and discounting
  • Provides updated examples, most of which refer to the post-2008-crash financial world
  • Uses Microsoft Excel 2016 throughout
  • All exercises have been revised or annotated to indicate which topic that exercise covers


  • 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)

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.


"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

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