Financial Modeling, 3rd Edition

Financial Modeling, 3rd Edition
by Simon Benninga

Financial Modeling, 3rd Edition
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Book Summary Information

Author: Simon Benninga
Edition: Hardcover
Audio: English (Original Language); English (Unknown); English (Published)
Published: 2008-02-29
ISBN: 0262026287
Number of pages: 1168
Publisher: The MIT Press

Book Reviews of Financial Modeling, 3rd Edition

Book Review: Wide-ranging book with incredible hands on insight
Summary: 5 Stars

I wish I had the opportunity to study modeling from this perspective while in school. Prof Benninga's insistence on taking the student from theory to application provides a unique perspective that is critical to a variety of functions in corporate finance.

I use this book on almost a daily basis to approach common financial decisions with a new level of quantative rigor.

Worth easily 10x its price. Do buy.

Summary of Financial Modeling, 3rd Edition

Too often, finance courses stop short of making a connection between textbook finance and the problems of real-world business. Financial Modeling bridges this gap between theory and practice by providing a nuts-and-bolts guide to solving common financial models with spreadsheets. Simon Benninga takes the reader step by step through each model, showing how it can be solved using Microsoft Excel.

The long-awaited third edition of this standard text maintains the "cookbook" features and Excel dependence that have made the first and second editions so popular. It also offers significant new material, with new chapters covering such topics as bank valuation, the Black-Litterman approach to portfolio optimization, Monte Carlo methods and their applications to option pricing, and using array functions and formulas. Other chapters, including those on basic financial calculations, portfolio models, calculating the variance-covariance matrix, and generating random numbers, have been revised, with many offering substantially new and improved material. Other areas covered include financial statement modeling, leasing, standard portfolio problems, value at risk (VaR), real options, duration and immunization, and term structure modeling. Technical chapters treat such topics as data tables, matrices, the Gauss-Seidel method, and tips for using Excel. The last section of the text covers the Visual Basic for Applications (VBA) techniques needed for the book. The accompanying CD contains Excel worksheets and solutions to end-of-chapter exercises.

Praise for the previous editions:

"Benninga has a clear writing style and uses numerous illustrations, which make this book one of the best texts on using Excel for finance that I've seen."
-Ed McCarthy, Ticker Magazine

"The author describes this as a 'cookbook' and that is a good analogy.... Its breadth is extensive, covering simple present valuing and cost of capital ... to the likes of real options and early exercise of American-style options.... A worthwhile acquisition."
-Paul Dentskevitch, Risk Magazine

"Financial Modeling is highly-recommended to readers who are interested in an introduction to basic, traditional approaches to financial modeling and analysis, as well as to those who want to learn more about applying spreadsheet software to financial analysis."
-Edward Weiss, Journal of Computational Intelligence in Finance

"Financial Modeling belongs on the desk of every finance professional. Its no-nonsense, hands-on approach makes it an indispensable tool."
-Hal R. Varian, Dean, School of Information Management and Systems, University of California, Berkeley

"This is applied finance theory for the professional at its best. As a student, I and countless others learnt the intricacies of Lotus and financial theory from Professor Benninga's first book-Numerical Techniques in Finance. Now, as a professional, I do not have to 're-invent the wheel' in Excel. An invaluable guide. A must for all financial analysts."
-Vikas Nath, Global Strategist, Emerging Equity Markets, Union Bank of Switzerland, London

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