The table below shows topics in our financial modelling quiz / competition. The first column of ticks and crosses indicates whether a solution to the topic can be downloaded into the quiz spreadsheet. The second column shows whether there is a YouTube explanation of how to solve the problem.
Answer downloading must be done from the quiz / competition spreadsheet  it cannot be done directly from this page.
In the third column you can "vote" on topics you would like added to the set of YouTube explanations. You can choose up to five topics and you can change your choice at any time. Your choices will be remembered until the next time you change them.
Topic  Loadable answer  YouTube answer  Vote 

1.0  Introduction and overview  
Overview  
Introduction 



2.0  Core finance concepts  
Core  
Terminal value formula 



Discounting a single cashflow over one period 



Discounting cash flows + terminal value 



Internal rate of return 



Calculating present value on a nominal basis 



Calculating an inflation index 



Calculating a real discount rate 



Calculating NPV on a real (inflationadjusted) basis 



Calculating IRR on nominal and inflationadjusted bases 



DCF and EVA  
Discounted cash flow 



Economic profit 



3.0  Common logic issues  
Logic  
Meeting two objectives concurrently 

 
Meeting several objectives concurrently 



Resolving circular references 



Induction 



4.0  Discounted cash flow  
Term structure  
Multiple discount rates 



Term structure of discount rates 



Term structure of discount rates  using an array 



Beta  
Calculation of Beta 



Market and asset risk 



Market and asset correlation 



Beta 



Cost of capital 



Net present value 



DCF steady state  
Balance sheet 



Income statement 



Cash flow statement 



Statement of changes in equity 



Free cash flows 



Levered cost of equity 



Market values 



Book values 



WACC 



Market value reconciliation 



Ratios 



Returns 



DCF time varying  
Balance sheet 



Income statement 



Cash flow statement 



Statement of changes in equity 



Free cash flows 



Levered cost of equity 



Market values 



Book values 



WACC 



Ratios 



Returns 



Economic value added 



EVA / DCF reconciliation 



5.0  Internal rate of return  
IRR  
Share of free cash flow to achieve a target IRR 

 
Calculating IRR tenor 



IRR waterfall 



Two IRRs 



IRR when cash flows grow at a constant rate in perpetuity 



6.0  Various types of problems  
Sculpting  
Reserving for a future need #1 



Reserving for a future need #2 



Paying down a loan according to a repayment profile 



Paying down a loan with capitalised interest 



Expected value  
Expected value of a distribution 



Standard deviation of a distribution 



Two envelope problem 



Foreign exchange  
Forward foreign exchange rates 



Discount factors across currencies 



Presentvaluing currency cash flows 



Converting risky foreign cash flows to a reference / domestic currency 



Inflation adjusting currency cash flows 



Calculating real riskfree and risky rates 



Ratios  
Debt service coverage ratio 



Loan life coverage ratio 



7.0  Typical types of models  
Four phase  
Generate phase flags 



Calculate growth rates 



Calculate income #1 



Calculate income #2 



Calculate upgrade cost 



Calculate break fee 



Calculate net cash flow and NPV 



Lookups  
Dates and events 



Growth and volume 



Resource requirements 



Resource costs 



Normalised growth 



Project  
Income statement 



Operating revenues 



Capital expenditure 



Funding 



Cashflow available for debt service 



Cashflow available for equity 



Net cash flow 



Distribution waterfall 



Terminal value calculations 



Net present value 



Internal rate of return 



Debt service 



Ratios 



Cash account 



Balance sheet 



Sources of funds 



Uses of funds 



Quiz spreadsheet [XLS file]
Quiz answers [PDF file]
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