COMMERCE 3FD3 Study Guide - Final Guide: Economic Model, Circular Reference, Data Validation
19 Oct 2020
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Debugging: use excel to find obvious errors (eg. stuff that won"t let the program run like: value error, syntax errors, spelling mistakes, correct logic errors, used the wrong formula, circular reference, referred to the wrong cell, etc. Pro-forma financial statements: the most common type of financial model, used for stuff like financial planning, credit analysis, m&a reviewing, you will typically make: valuation, etc. Income statement: statement of financial position, statement of cash flows, statement of changes in equity, sensitivity tables, key financial indicators. Improve the model based on feedback (which includes adding more stuff like statement of cash flows, free cash flows, and statement of changes in equity) Week 1 - financial modelling in the investment world. The purpose of the financial model is to determine whether the company will reach its target irr within. 3-5 years when undergoing this particular investment: this valuation is used to justify a financial decision.
