Global Financial Markets Institute»Financial Modeling

Financial Modeling

This one-day course is an introduction to financial modeling methodologies such as discounted cash flow models frequently utilized by financial organizations. As part of the course, participants build cash flow projection models and then develop NPV, IRR, and DCF analysis around them. The core elements of a cost of capital model will be explored and decomposed into debt and equity components. The focus is on estimating WACC based on estimates of equity cost of capital and debt cost of capital. Common approaches to assessing both market and credit risk will also be evaluated.

Course Objectives

By the end of the course, participants will be able to:

  • Analyze the role of debt and equity in a firm’s capital structure
  • Build DCF, IRR, and NPV models
  • Determine hurdle rates and internal rates of return for projects and investments
  • Calculate the weighted average cost of capital of a firm
  • Assess the components of market and credit risk models

Suggested Prerequisites:

  • Equity Markets
  • Fixed Income or equivalent knowledge

Program Level:Foundational

Advance Preparation:None

Computers and Financial Calculators: Computers

Recommended CPE Credits: 7