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Hands-On Financial Modeling with Excel for Microsoft 365

You're reading from   Hands-On Financial Modeling with Excel for Microsoft 365 Build your own practical financial models for effective forecasting, valuation, trading, and growth analysis

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Product type Paperback
Published in Jun 2022
Publisher Packt
ISBN-13 9781803231143
Length 346 pages
Edition 2nd Edition
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Author (1):
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Shmuel Oluwa Shmuel Oluwa
Author Profile Icon Shmuel Oluwa
Shmuel Oluwa
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Table of Contents (19) Chapters Close

Preface 1. Part 1 – Financial Modeling Overview
2. Chapter 1: An Introduction to Financial Modeling and Excel FREE CHAPTER 3. Chapter 2: Steps for Building a Financial Model 4. Part 2 – The Use of Excel Features and Functions for Financial Modeling
5. Chapter 3: Formulas and Functions – Completing Modeling Tasks with a Single Formula 6. Chapter 4: Referencing Framework in Excel 7. Chapter 5: An Introduction to Power Query 8. Part 3 – Building an Integrated 3-Statement Financial Model with Valuation by DCF
9. Chapter 6: Understanding Project and Building Assumptions 10. Chapter 7: Asset and Debt Schedules 11. Chapter 8: Preparing a Cash Flow Statement 12. Chapter 9: Ratio Analysis 13. Chapter 10: Valuation 14. Chapter 11: Model Testing for Reasonableness and Accuracy 15. Part 4 – Case Study
16. Chapter 12: Case Study 1 – Building a Model to Extract a Balance Sheet and Profit and Loss from a Trial Balance 17. Chapter 13: Case Study 2 – Creating a Model for Capital Budgeting 18. Other Books You May Enjoy

An introduction to the framework

A worksheet in Microsoft Excel is divided into over 1 million rows and over 16,000 columns. The rows are labeled 1, 2, 3, and so on to 1,048,576, and the columns are labeled A, B, C, and so on to XFD. The rows and columns intersect to form over 16 billion cells in one worksheet. However, since a cell is identified by the column and row that intersect to form it, each cell has a unique identification that is conventionally written as the intersecting column and row. Thus, at the intersection of column UV and row 59, we have the cell UV59. There is no other cell UV59 on that worksheet in that workbook on that computer. This feature forms the basis for the referencing framework in Excel. It means that you can use the contents of any cell simply by including its cell reference in a formula.

The following screenshot gives the simplest example of this. By typing =D4 in cell F5, the contents of cell D4, Happy day, have been duplicated in cell F5:

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