Announcing the FOURTH EDITIONS of

             EXCEL MODELING IN INVESTMENTS
       EXCEL MODELING IN CORPORATE FINANCE

                             By Craig W. Holden, Indiana University
                               Published by Pearson (Prentice Hall)

Each book teaches how to build financial models in Excel
 Ready-to-build spreadsheets on the CD provide the student with:
      · the model setup
      · step-by-step instructions on the spreadsheet itself
      · all instructions are explained twice: first in words and second as an Excel formula
      · a platform to enter and copy the formulas as instructed to build the spreadsheet
      · examples using real data
      · spin buttons, option buttons, and graphs that facilitate visual, interactive learning
 The books can be combined with any investments or corporate finance textbook by any publisher
They are compatible with Excel 97 – Excel 2010


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 EXCEL MODELING IN INVESTMENTS
Contents,  Preface,  Desk Copy,  Purchase on Amazon.
New investments content:
      · estimating asset pricing models, including the Fama-French three-factor model
      · estimating portfolio optimization with constraints (e.g., short-sale constraints)
      · trader simulation and dealer simulation using simulation add-in @RISK
      · Cox-Ingersoll-Ross term structure model, Merton corporate bond model,
         American options with discrete dividends, Black-Scholes sensitivities (Greeks),
         11 exotic options


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EXCEL MODELING IN CORPORATE FINANCE
Contents,  Preface, Desk Copy,  Purchase on Amazon.
New corporate finance content:
     · estimating the cost of capital from real data
     · two-stage valuation of firms and of projects using five equivalent methods:
        (1) adjusted present value, (2) free cash flow to equity, (3) free cash flow to the
        firm, (4) dividend discount model, and (5) residual income
     · four international parity conditions

New content for the fourth editions:
     · Immunize bond portfolios against interest rate risk
      · Use simulation to price path-independent derivatives (cash-or-nothing options, etc.) and path-dependent derivatives (e.g., Asian options, etc.) – both with and without jumps
      · Perform constrained portfolio optimization, involving constraints such as no short-sales, no borrowing, etc., on any number of assets up to 20 assets
      · Analyze trading strategies involving many options, stocks, bonds, and futures either holding to maturity or holding to any other date
             – includes a database of 50 trading strategies with bullish strategies, bearish strategies, high volatility strategies, low volatility strategies, combined directional and volatility strategies, and arbitrage strategies
      · Price derivatives on alternative types of underlying assets, such as stocks, stock indexes, futures, and foreign currencies
      · Determine margin calls and excess margin on futures contracts
      · Translate bond pricing into alternative foreign currency values
      · Compute the average of a N-step and a N-1-step binomial model to order to gain pricing accuracy
      · Use current Trade and Quote (TAQ) data to compute the National Best Bid and Offer (NBBO), the quoted spread, the effective spread, and determine which exchange has the lowest cost of trading
      · Value a firm or a project in a two-stage framework using five alternative techniques and demonstrating their equivalence:
            – Free Cash Flow to Equity
            – Free Cash Flow to the Firm
            – Residual Income
            – Dividend Discount Model
            – Adjusted Present Value
      · An appendix on Reconciling the Residual Income Method with Other Approaches to Valuing Firms or Projects by Professor Robert A. Taggart of Boston College
      · Analyze capital structure models:
            – Modigliani-Miller with no taxes
            – Modigliani-Miller with corporate taxes
            – Trade-off model: tax shield vs. distress cost

My goal in writing the Excel Modeling and Estimation books/CDs is simply to change finance education from being calculator-based to being Excel-based.