Principles of Finance with Excel

by Simon Z. Benninga

Finance is a topic that requires much computation, and in today's business world that computation is done almost entirely using Excel software. Despite this, existing finance textbooks continue to rely heavily on hand calculators. Business school students whose background in Excel software is often weak when they come into finance courses find that when they leave the academic environment they have to relearn both finance and the software. Addressing this issue, Principles of Finance with Excel is the only introductory finance text that comprehensively integrates the program into the teaching and practice of finance. Offering exceptional resources for students and instructors, the book combines classroom tested pedagogy with the powerful functions of Excel software. Author Simon Benninga one of the most recognized names in financial modeling shows students how spreadsheets provide new and deeper insights into financial decision making.

The second 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 and can therefore be used in any introductory course. However, it also introduces Excel software as it applies to finance students and practitioners. Throughout the book, the implementation of finance concepts with Excel software is demonstrated and explained. A separate section of PFE provides thorough coverage of all Excel software topics used in the graphs, function data tables, dates, Goal Seek, and Solver.

Genres: Finance, Business, Textbooks, Reference

816 pages, Hardcover

First published January 1, 2006

Reviews

[Rommel Harlequin Monet · Rating 5 out of 5]

A more accessible book than his "Financial Modeling" which is more PHD in Finance / CFA level. This is perfect for undergrads and Financial Analysts working for Private Equity. I use the models in Chapter 10 all the time. Amazing book.

Table of Contents:

PART ONE - INTRODUCTORY CHAPTERS
1. Introduction to Finance
2. Business Organization and Taxes
3. An Accounting Primer
4. Cash Management with Excel

PART TWO - CAPITAL BUDGETING AND VALUATION
5. Time Value of Money
6. What Does it Cost? Applications of the Time Value of Money
7. Introduction to Capital Budgeting
8. Issues in Capital Budgeting
9. Choosing a Discount Rate
10. Using Financial Planning Models for Valuation*

PART THREE - PORTFOLIO ANALYSIS AND THE CAPITAL ASSET PRICING MODEL
11. What is Risk?
12. Statistics for Portfolios
13. Portfolio Returns and the Efficient Frontier
14. The Capital Asset Pricing Model and the Security Market Line (SML)
15. Using the SML to Measure Investment Performance
16. The SML and the Cost of Capital

PART FOUR - VALUING SECURITIES
17. Efficient Markets - Some general Principles of Security Valuation
18. Bond Valuation
19. Valuing Stocks

PART FIVE - CAPITAL STRUCTURE AND DIVIDEND POLICY
20. Capital Structure and the Value of the Firm
21. The Evidence of Capital Structure
22. Dividend Policy

PART SIX - OPTIONS AND OPTION VALUATION
23. Introduction to Options
24. Option Pricing Facts
25. Option pricing - The Black Scholes Formula
26. The Binomial Option Pricing Model

PART SEVEN
27. Introduction to Excel
28. Graphs and Charts in Excel
29. Excel Functions
30. Data Tables
31. Working With Dates in Excel
32. Using Goal Seek and Solver
33. Data Manipulation in Excel
34. Using Excel Information in Word Documents


Principles of Finance with Excel is the first textbook that comprehensively integrates Excel into the teaching and practice of finance. This book provides exceptional resources to the instructor and student, combining classroom tested pedagogy with the full potential of Excel's powerful functions.

In today's business world, computation is done almost wholly in Excel. Excel's ability to combine graphics with computation and perform complex sensitivity analysis with ease provides potent insights into financial problems. Despite this, most finance texts rely heavily on hand held calculators and ignore Excel. As a result, many students find that after they enter the professional environment, they have to relearn both finance and Excel.

Principles of Finance with Excel is ideal for undergraduate courses in introductory finance or as a reference for finance professionals. A Free In Text CD for students contains electronic versions of all spreadsheets in the book.

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.

RIP, Mensch.

[David Celley]

An excellent way to learn the fundamentals of finance and apply them to individual needs using Microsoft Excel as an analysis tool.