Financial Modeling, Fourth Edition

The fourth edition of Financial Modeling, by Simon Benninga, is a thoroughly updated resource that combines clear explanations with practical implementation using Excel. Designed for both classroom use and finance professionals, this edition continues the tradition of blending theory with hands-on "cookbook" style examples that illuminate key concepts in corporate finance, portfolio management, options, and bonds. This edition introduces several innovative elements. New sections provide a detailed exploration of Monte Carlo methods and their application in portfolio management and the valuation of exotic options. In addition, an expanded chapter on term structure modeling - with a focus on the Nelson-Siegel model - enhances the reader’s understanding of financial dynamics. Further strengthening the book’s comprehensive approach, the discussion on corporate valuation has been enriched with a straightforward model based on fundamental accounting data and minimal valuation parameters. With extensive Excel spreadsheets guiding each concept, Financial Modeling continues to be the definitive guide for those seeking to master financial models in an accessible and practical way.