Excel for Corporate Finance Professionals

Introduction

• Excel's tools for corporate finance

1. Critical Tasks in Corporate Finance

• Describe corporate finance and its purpose
• Explore project selection in finance
• Explain the weighted average cost of capital and capital structure
• Estimate cash flows in budgeting
• Financial ratios and Excel
• Valuation tools and Excel
• Build scenarios and stress tests in Excel

2. Project Selection in Excel

• Define a capital budgeting scenario in Excel
• Build out a series of capital budgeting scenarios
• Perform NPV tests
• Perform IRR tests
• Perform PBP and MIRR tests
• Scenario analysis in Excel
• NPV and scenario analysis
• Evaluate Excel models for accuracy

3. WACC and Capital Structure in Excel

• Capital structure in Excel
• Describe the concept of WACC
• Build out a set of capital structure options in Excel
• Demonstrate changes in capital structure
• Estimate WACC in Excel for a capital structure
• Show sensitivity of WACC to changes in capital structure
• Determine optimal WACC
• Adjusting WACC for risk

4. Operational Budgeting in Excel

• Introduce operational budgeting in Excel
• Demonstrate building a budget in Excel
• Add CAGRs to Excel for long-term assumptions
• Build percent of sales assumptions for expense
• Link budget to pricing and sales assumptions
• Provide stress test tools for budgets in Excel

5. Valuation in Excel

• Valuation of assets in Excel
• Estimation of cash flows
• Determine a discount rate
• Identify the valuation
• Stress testing the valuation model

Conclusion

• Continue your corporate finance journey with Excel