Principles of Finance with Excel

by Benninga, Simon; Mofkadi, Tal

• ISBN13: 9780190296384
• ISBN10: 0190296380
• Edition: 3rd
• Format: Hardcover
• Copyright: 2017-08-24
• Publisher: Oxford University Press

Summary

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.

Author Biography

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