fall 2013 financial modeling assignments

8/13/2019 Fall 2013 Financial Modeling Assignments

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FINANCIAL MODELING

FALL SEMESTER 2013

Team Assignments: General Instruti!ns

1. When working on university computers, students must log in and save files with theirown User ID.

2. Each student must have at least one ackup copy of each file at all times. !his isasolutely critical. "o e#cuses will e accepted for not sumitting assignments on time.

$. %oth E#cel files and printouts, with the names of the students identified on oth, must esumitted for all assignments.

&. 'll assignments sumitted y the student(s must e entirely original and sole creationsof the student(s. 'cademic cheating or plagiarism will e severely penali)ed inaccordance with University regulations.

*. 'll assignments are due y $+ pm on the due date. !here will e a penalty of 1- ofthe total points allotted for assignments sumitted up to a day late. or assignments thatare sumitted late y more than a day, ut up to a week, the penalty will e 2- of thetotal points allotted. "o assignment will e accepted more than a week late.

/. !he points allotted for different assignments(sections will vary, depending on the degreeof difficulty and amount of work involved. 0oints will e given for content, method andformat.

. "ame the E#cel files with your last names, followed y the hapter "umers, e.g.,3mith!homas143mith!homas$& 5for hapter 14hapter $&6. Use the specified sheetnames, indicating the page numers in the ook. 0rint the specified cell ranges in theindicated orientations.

7. !he pro8ects should e done from scratch. !e#t and numers may e copied fromthe files on the D, ut you must enter all the formulas(functions and create Data!ales, harts, etc., yourselves.

9. ormulas should use cell references whenever possile and asolute(relative cellreferences, as appropriate.

1. !he printouts, including all formats, should resemle the outputs(charts shown in theook, unless otherwise specified.

11. %efore printing, group all the sheets and create custom footers containing the file name,sheet name, and date. 'lso 0review the 0rint output to print only the specified ranges.

12. Written answers to the pro8ect :uestions should e typed with a word processingprogram. "ames of team memers should e indicated on the sheet.

1


2/21

C"a#ter 33

S"eet Name $age %Cells& Orientati!n Saling

1. 9 top 9 top 5'1+;/6 0ortrait

2. 91 top 91 top 5'1+;/6 0ortrait

$. 91'. In the emedded chart in cells 2+=1$, the ? a#is should e formatted as - with no

decimals.%. Do not enter the step lael and value in cells '2*+%2*. Instead, enter - in cell D2&,

12- in cell D2*, highlight cells D2&+D2*, and drag the fill handle down to cell D$9 tocreate the column entries for the Data !ale.@

&. 92'. Use a more efficient method 5formula with a cell reference6 to get the numers in

cells 9+17 if possile.@

. 9/ 9/ 5'1+E1/6 Aandscape

7. 7$ 7$ 5'1+1/6 0ortrait

9. 7& 7& 5'1+E1/6 0ortrait

1. 7* 7* 5'1+16 0ortrait11. 7/ 7/ 5'1+D2*6 0ortrait

12. 7 7 5'1+D26 0ortrait

1$. 77 77 5'1+;$&6 Aandscape it to 1 0age

1&. 79


3/21


4/21

C"a#ter 31


1. / top / top 5'1+E116 Aandscape

2. / ottom / ottom 5'1+I6 Aandscape

$. 5'1+I/6 Aandscape

&. 9 top 9 top 5'1+76 Aandscape

*. 7 7 5'1+G1$6 Aandscape>'. ormat cells '1+D1$ as "umers with & decimals, as shown at the ottom of page

7.@

/. 72 72 5'1+=16 Aandscape

S"eet Name 'uesti!n

9 1. What condition must e satisfied for multiplying matricesF

7 top 2. When the inverse of a matri# is multiplied y the original matri#, whatis the resulting matri# called and what does it containF

72 $. 3how how the solution ? for the system of simultaneous lineare:uations '? H C is found in matri# notation.

72 &. 3et up the three simultaneous e:uations, laeling the three unknownvariales as #, y, and ). 0lug in the solutions for the variales and showthat they result in the column vector C.

&


5/21

C"a#ter 3(


1. 72/ 72/ 5'1+;&6 Aandscape

2. 729 729 5'1+I16 Aandscape 52 0ages6 9*->'. opy cells '2+%$/$ from the 0age 729 3heet in the hapter $& ile on the D.%. Do not enter the step lael and value shown in cells 07+7 on the D. Instead, enter

J2*.1- in cell E7,


6/21

C"a#ter )


1. 2&


7/21

2&7


8/21

C"a#ter 1*


1. *1


9/21

C"a#ter 2+


1. /2 /2 5'1+;2&6 Aandscape

>'. Dont do the Dduration functions in cells %21 and %2&.@

2. // // 5'1+196 Aandscape

$. / / 5'1+126 Aandscape

&. /7 /7 5'1+D296 Aandscape>'. reate a dynamic title for the chart, using cells %$$+%$& as shown in the D,

although those cells need not e printed.@

*. /9 /9 5'1+D$16 Aandscape

>'. In cell %$$, the title should e+ Effect of Laturity on Duration.@

S"eet Name 'uesti!n

/2 1. %riefly descrie and e#plain how the duration of ond ' is calculated in cell %1 and state what the duration measures.

/2 2. What is the reason that %ond % has a shorter duration than %ond 'F

/7 $. %riefly descrie and e#plain the full effect of coupon on duration.

/9 &. %riefly descrie and e#plain the full effect of maturity on duration.

9


10/21

C"a#ter 2,


1. / / 5'1+&6 0ortrait it to 1 0age

>'. opy and paste cells '1+2 and '$+E&2/ from the page / sheet on the D.%. Enter the formula in cell $ and copy it down to cell &2/.. reate the 3catter hart in cells '1*+$, add the 0olynomial !rendline of Mrder $,

and select the options display e:uation and B


11/21

C"a#ter 1


1. & & 5'1+D1&6 0ortrait

>In the 0 function 5cell 1&6, use cell references for Cears and 0ayment.@

2. * * 5'1+D1$6 0ortrait

$. 5'1+D1&6 0ortrait

&. 7 top 7 top 5'1+1/6 0ortrait

*. 7 ottom 7 ottom 5'1+&6 0ortrait

/. 9 top 9 top 5'1+1/6 0ortrait

. 9 ottom 9 ottom 5'1+*6 0ortrait

7. 1 top 1 top 5'1+16 0ortrait

9. 1$'. In the uture alue formula 5cell 16, use a cell reference for Cears.@

1*. 2 2 5'1+176 0ortrait

1/. 2& 2& 5'1+196 Aandscape

1. 2* 2* 5'1+76 0ortrait

17. 2/ 2/ 5'1+$$6 0ortrait

19. 27 27 5'1+D116 0ortrait>'. Write the formula in cell * as+ H%*(E?05%N2O'*6 and copy it down to 9.@

11


12/21


13/21

C"a#ter 2


1. &$ &$ 5'1+*16 0ortrait

2. && && 5'1+126 0ortrait

$. &* &* 5'1+;26 Aandscape it to 1 0age

&. & & 5'1+D$/6 0ortrait

*. &9 &9 5'1+26 Aandscape

/. *& *& 5'1+;26 0ortrait it to 1 0age

. *7 *7 5'1+I96 0ortrait it to 1 0age

7. / / 5'1+*6 0ortrait

9. /2 /2 5'1+/6 0ortrait1. /$ /$ 5'1+D216 0ortrait

11. /& top /& 5'1+1/6 Aandscape

12. /& ottom /& 5'1+76 0ortrait

1$. /* /* 5'1+1$6 Aandscape

1&. / / 5'1+D196 Aandscape

S"eet Name 'uesti!n

&& 1. !he formula for rE is D1(0P g, ut the difference etween the costs ofe:uity ased on the 1


14/21

S"eet Name 'uesti!n

/& ottom. *. Will the cost of e:uity ased on the ta#


15/21

C"a#ter 3


1. 111'. opy cells '1+;$9 from 3heet 111'. opy cells '1+;$9 from 3heet 111'. opy cells '1+;$7 from 3heet 12$


16/21

C"a#ter 3

S"eet Name 'uesti!n

111


17/21

C"a#ter (


1. 1&'. Use opy, Edit, and 0aste 3pecial to copy the Rvalues and numer formatsS of cells'1+%&/ from the 0age 1&


18/21

C"a#ter 1+


1. $97 $97 5'1+D$/6 Aandscape it to 1 0age

2. & & 5'1+/6 Aandscape

$. &1 &1 5'1+2*6 Aandscape>'. !ype Rumulative 0DS in cell '/.%. reate the Data !ale in cells E1&+&2 and use its cell references for the hart,

although you need not print the Data !ale.. ormat cells 1&+&2 and the C


19/21

C"a#ter .


1. 2*, 2 2* 5'1+=2$6

2 5'2/+;$$6 Aandscape it to 1 0age

2. 29 29 5'1+=216 Aandscape it to 1 0age>'. opy cells '1+'21 from the 0age 29 3heet of the hapter / file on the D.%. opy cells %2+=21 from your 3heet 2*, 2.. Delete the J sign efore the formulas in cells %11+;11.D. hange the formulas in cells %19+=19.E. Use 3olver to find the numer in cell %&. 3et !arget ell 5%216 e:ual to value of

.2. !he lowest acceptale lease payment 5%&6 should e N1$&,2/. Keep the 3olver3olution.@

$. 212 212 5'1+=$/6 Aandscape it to 1 0age>'. hange the Aease payment 5%&6 to 1,9,. !he IBB of differential cash flow5%176 will e *.*/-.

%. hange United !urines orrowing rate 5%2*6 to &.*-.. Delete column = since the Depreciation ta# shields will end in year *.D. !he cell range in the IBB function should e %$$+;$$. !he IBB of lessor cash flows

5%$*6 will e $.1- and United !urines after


20/21

S"eet Name 'uesti!n

21& *. %riefly descrie and e#plain the method used to include the Besidualalue in the Aease 'nalysis.

2


21/21

C"a#ter ,


1. 221 221 5'1+I$16 Aandscape it to 1 0age

2. 22$ 22$ 5hart6 Aandscape hart 3heet

$. 22& 22& 5'1+E216 0ortrait

&. 22/, 227 top 22/ 5'1+196227 top 5'2&+$6 0ortrait

*. 227 ottom 227 ottom 5'1+226 0ortrait

/. 2$ 2$ 5'1+G$26 Aandscape it to 1 0age

S"eet Name 'uesti!n

221 1. %riefly descrie and e#plain the calculation of the ash low in cellI1&.

22$ 2. %riefly descrie the pattern of cash flows oserved in the chart overCears

fall 2013 financial modeling assignments

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