Professors	Email (both profs)	Address	Office Phone	Fax
Crocker H. Liu	cliu@stern.nyu.edu	Henry Kaufman Management Center 44 West Fourth Street, Suite 9-190 New York, New York 10012-1126	(212)998-0353	(212)995-4233
Charles Trzcinka	ctrzcink@indiana.edu	Kelly School of Business Finance Department, Rm 370 1309 East Tenth Street Bloomington, Indiana 47405	(812)855-9908	(812)855-5875

Course Overview: This course takes a hands-on approach to building financial spreadsheet models using Internet and intranet resources. We will also show how the internet and intranet can be used online to perform security analysis of stocks and bonds, pricing options, and forming efficient portfolios in addition to acting as a channel of information transmission. Students are required to bring their own laptops so that they can practice as they learn.

Course topics include but are not limited to: 1) preparing financial projections of the balance sheet and income statement, 2) using earning surprise models, 3) doing relative valuation using regression analysis, 4) building discounted cash flow (DCF) models, 5) performing sensitivity analysis of DCF valuation using SOLVER, Data Tables, and Sensitivity Analysis options in Excel, 6) calculating duration, 7) calculating weights for optimal portfolios and graphing the efficient frontier, and 8) constructing Black-Scholes option pricing models with and without dividend adjustments.

Texts and materials:

• Benninga (B), Financial Modeling (2nd Edition), MIT Press, 2000
• Liu (B), Lecture Notes on Financial Modeling, 1999

• Richard Michaud, "Efficient Asset Allocation:A Practical Guide to Stock Market Portflolio Optimization and Asset Allocation" Harvard Business School Press 1998