# Financial modelling quiz / competition

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.

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.

You can only vote for five items. Untick one if you want to choose a new one.
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 (inflation-adjusted) basis

Calculating IRR on nominal and inflation-adjusted 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

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

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

Present-valuing currency cash flows

Converting risky foreign cash flows to a reference / domestic currency

Calculating real risk-free 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 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