Financial Modeling & Valuation Exam 1

Edit Active Cell

F2

Cut

CTRL + X

Copy

CTRL + C

Paste

CTRL + V

Toggle References

F4

Fill Down

CTRL + D

Fill Right

CTRL + R

Undo

CTRL + Z

Redo

CTRL + Y

Bold

CTRL + B

Italic

CTRL + I

Increase Indent

ALT + H + 6

Decrease Indent

ALT + H + 5

Go To

F5

Find & Replace

CTRL + F

Move to next sheet

CTRL + Page down

Move to previous sheet

CTRL + Page up

Check Spelling

F7

Close Worksheet

CTRL + W

Open Worksheet

CTRL + O

Save worksheet

CTRL + S

Calculate Now

F9

Cumulative Sum

=SUM($A$1:A1)

Drop Down Menu

Data Validation > List > Select Area > OK

What is: Filter?

Temporarily hides rows that do not meet specific criteria, allowing you to focus on a subset of your data for analysis, copying, or printing

What is: Sort?

Rearranges data within a range or table, typically alphabetically, numerically, by date, or by custom order, to help you organize, visualize, and find information more easily

What is: Conditional Formatting?

Allows you to automatically apply specific formatting (like changing background color, font color, or adding icons) to cells based on defined rules and conditions, making it easier to visually identify patterns, trends, and important data at a glance

What is: Text to Column?

Separates the text in a single column into multiple columns, based on either a specific character (a delimiter, like a comma or space) or a defined character width

What is: Find/Replace?

Allows you to quickly locate specific text, numbers, or even formatting within a spreadsheet or workbook and then replace it with new content or a different format

What is: Remove Duplicates?

Permanently deletes entire rows that contain identical values in one or more selected columns, leaving only unique entries

=SUM

Adds together numbers or values in a range of cells or individual cells

Circular Referencing

Referring to the same cell that is active. If the cell value depends on itself, it cannot function properly.

Relative Format

A1

Absolute Reference

$A$1

Absolute Row Reference

A$1

Absolute Column Reference

$A1

Ampersand Operator (&)

Conjoins two items, whether it is numbers, text, date, etc. into one cell.

Advantages of Excel

It is basically everywhere, everyone knows it, & it is easy to interact

Disadvantages of Excel

The code and view is mixed, easy to make mistakes, & roundabout approaches needed.

Financial Modeling

A process of converting financial inputs
into meaningful financial outputs.

1st basic step of financial modeling

Examine the financial problem at hand and its
related contexts by Q&As.

2nd basic step of financial modeling

Identify inputs, assumptions and desired outputs.

3rd basic step of financial modeling

Gather the relevant information.

4th basic step of financial modeling

Find the right tool & build the model.

5th basic step of financial modeling

Test, revise, and update the model regularly.

Data Cleansing Tools

Filter, Find/Replace, Remove Duplicates, Text to Column, Conditional Formatting, 
Trim, Transpose, & Spell Check 

EDGAR

An electronic data gathering, analysis, and retrieval system used to get SEC filings.

10-K from EDGAR

Annual report with audited financial statements.

10-Q from EDGAR

Quarterly report with unaudited financial statements.

8-K from EDGAR

Report of current events to announce major events that shareholders should know about.

Proxy Statements from EDGAR

Statements filed by companies before shareholder meetings to provide shareholders with the information to make informed decisions.

Schedule 13-D

Reports the acquisition of beneficial ownership of more than 5% of a voting class of a company’s equity securities by a person or a group of persons.

WRDS

Provides the leading business intelligence, data analytics, and research platform to global
institutions ̶ enabling comprehensive thought
leadership, historical analysis, and insight into the latest innovations in research.

CPI Databases

FRED, BLS,World Bank, IMF, OECD

Personal Financial Planning Process

Assess current financial situation, Set goals, Build assumptions (income, spending), Forecast cash flows & savings using TVM, Evaluate progress & adjust

Importance of Assumptions

drive the entire model with simplicity, clarity, fast forecasting, however, there can be oversimplification, risk of incorrect conclusions

CTRL + A

Select All Used Cells

RATE

=(nper, pmt, pv, fv, [type])

FV

=(rate, nper, pmt, pv, [type])

PV

=(rate, nper, pmt, fv, [type])

PMT

=(rate, nper, pv, fv, [type])

TVM [type] = 1

Beginning of period

TVM [type] = 0

End of Period (standard)

Ordinary Annuity

End of Month

Annuity Due

Beginning of month

Profitability Index

=NPV(Discount Rate, Net Cash Flows) /ABS(principal)

Perpetuity

Equal payments forever