Includes bibliographical references (p. [1095]-1106) and index.

1. Basic financial calculations -- 2. Calculating the cost of capital -- 3. Financial statement modeling -- 4. Building a financial model : the case of PPG corporation -- 5. Bank valuation -- 6. The financial analysis of leasing -- 7. The financial analysis of leveraged leases -- 8. Portfolio models - introduction -- 9. Calculating efficient portfolios when there are no short-sale restrictions -- 10. Calculating the variance-covariance matrix -- 11. Estimating betas and the security market line -- 12. Efficient portfolios without short sales -- 13. The Black-Litterman approach to portfolio optimization -- 14. Event studies -- 15. Value at risk -- 16. An introduction to options -- 17. The binomial option-pricing model -- 18. The lognormal distribution -- 19. The Black-Scholes model -- 20. Option Greeks -- 21. Portfolio insurance -- 22. An introduction of Monte Carlo methods -- 23. Using Monte Carlo methods for option pricing -- 24. Real options -- 25. Duration -- 26. Immunization strategies -- 27. Modeling the term structure -- 28. Calculating default-adjusted expected bond returns -- 29. Generating random numbers -- 30. Data tables -- 31. Matrices -- 32. The Gauss-Seidel method -- 33. Excel functions -- 34. Using array functions and formulas -- 35. Some Excel hints -- 36. User-defined functions with VBA -- 37. Types and loops -- 38. Macros and user interaction -- 39. Arrays -- 40. Objects and add-ins -- 41. Information from the Web -- Appendix 1. Excerpts from the Help file -- Appendix 2. The R1C1 reference style.

"The long-awaited third edition of this standard text maintains the "cookbook" features and Excel dependence that have made the first and second editions so popular. It also offers significant new material, with new chapters covering such topics as bank valuation, the Black-Litterman approach to portfolio optimization, Monte Carlo methods and their applications to option pricing, and using array functions and formulas. Other chapters, including those on basic financial calculations, portfolio models, calculating the variance-covariance matrix, and generating random numbers, have been revised, with many offering substantially new and improved material. Other areas covered include financial statement modeling, leasing, standard portfolio problems, value at risk (VaR), real options, duration and immunization, and term structure modeling.Technical chapters treat such topics as data tables, matrices, the Gauss-Sidel method, and tips for using Excel. The last section of the text covers the Visual Basic for Applications (VBA) techniques needed for the book. The accompanying CD contains Excel worksheets and solutions to end-of-chapter exercises." -- Cover.