HANOI

UNIVERSITY
FACULTY OF MANAGEMENT AND TOURISM
DEPARTMENT OF FINANCE AND BANKING

COURSE SYLLABUS

FINANCIAL MODELING

Fall 2016


Course name

Financial Modeling

Units of credit

Study length

15 weeks

Prerequisite/

High-school algebra and basics of calculus

Co-requisite

Financial management (FM)

Suggested commitment

Approx. 5 hours/week, self-studying inclusive

Term

Fall 2016

Course coordinator(s)

Nguyen Dinh Du, Lecturer & Tutor (E: dund@hanu.edu.vn)

The course syllabus contains important information. Please ensure that you read it carefully. It is
also strongly recommended that you keep this copy for future reference.
Course aim/rationale
Financial Modeling is designed specifically for students studying Finance. It aims to provide
practical relevance and real-world application to finance concepts. Adopting a problem-solving
approach, it focuses on computational issues in corporate finance, asset portfolios and stock
options. The areas covered by the course include application of net present valuation approach,
capital cost estimation, financial statement forecasting, asset and option pricing, portfolio
optimization. The course intends to provide students with theories and modelling skills required
for financial decision making in business and management and also enable students mastering
the quantitative skills and computation techniques required to solve practical problems.
Course structure

The structure of this course for on-campus students comprises:

One 2.5 periods lecture per week
One 2.5 periods tutorial per week
Prescribed textbooks and references
1. Benninga, S. 2014. Financial Modeling, 4th ed., The MIT Press.
2. Powell, S.G., Baker, K.R (2009), Management Science: The Art of Modeling with
Spreadsheets, 3rd ed., John Wiley & Sons, Inc. (first 5 chapters for first 3 lectures)


Week

Readings

Lecture Content

Tutorial Content

and Assignments

nd

Self-studying

nd

Topic 1

Topic 1: Introduction to Modeling and Excel

Chapter 1, 3 (2 textbook)

Topic 2: Basic Excel skills

Chapter 3, 5 (2 textbook)

Topic 3: Problem-solving framework

Chapter 2 (2 textbook)

Topic 2

Topic 4: Time Value of Money and

Applications

Chapter 1

Topic 3

Topic 4: continued

Chapter 1

Topic 5: The Weighted Average Cost of

Capital

Chapter 3

Topic 4 (contd)

Self-studying

Topic 5

Mid-term Exam

Self-studying

Topic 6: Pro Forma Financial Statement

Modeling and Firm Valuation

Chapter 5

Self-studying

10

Topic 6: continued

Chapters 5 & 6

Topic 6

nd

Read Ch.31, 33
Topic 4

Read Ch. 34
11

Topic 7: Linear Algebra and Matrix

Chapters 31 & 32

Topic 6 (contd)
st

1 assignment submission
12

Topic 8: Portfolios of Assets:

Return and Risk
Topic 8: continued

Chapters 8 & 10

Chapters 8 & 10

13

Topic 9: Efficient Portfolios and Capital

Market Line

14

Topic 9: continued

Chapter 9

15

Revision for Final Exam

Chapter 9

Topic 7

Topic 8

Topic 8 (contd)
Topic 9
Topic 9 (contd)
Course Review
nd

2 assignment submission

Notes:

Tutorial sessions will be held in computer labs.

Topic outlines and tutorial instructions will be posted online before each lecture.

The schedule is tentative and subject to changes if necessary.

2

Assessment and Feedback

No.
1.
2.
3.
4.

Assessment task
Class participation and attendance
2 group assignments
Mid-term examination
Final examination

Weighted Mark
10%
20%
20%
50%

Assessment Task No. 1

Due Date

Class participation and attendance

N/A

10%

Submission Details
N/A
Grading Criteria and Feedback
The total mark of this assessment will take up 10% of final mark of the course
Description of Task
Students are expected to attend and be on time for all lectures and tutorial sections.
Problem set and homework discussion with other students is allowed, but no credit will be
given to the homework or problem set that has been copied. Turn off mobile phones and
do not eat chewing-gum or bring food into lectures or tutorial sessions. Headphones and
newspapers reading during class are not allowed. Internet connection during tutorial
sections is not allowed unless approved by instructors.

Assessment Task No. 2

Due Date

Group assignments

As scheduled

20%

Submission Details
Groups of certain members (min 2, max 4) submit assignments to tutor at scheduled time
Grading Criteria and Feedback
The total mark of group assessment will take up 20% (10% for each) of final mark of the
course
Description of Task
Assignment tasks will be given at scheduled tutorial sessions. Groups are required to apply
excel functions, financial loan tables, data analysis tools, and forecasting techniques,
optimization techniques to solve financial problems. The tasks are completed at students
own time.


Assessment Task No. 3

Due Date

Mid-term examination

TBA

20%

Submission Details
Mid-term examination will be paper-based and scheduled during lecture time
Grading Criteria and Feedback
The total mark of mid-term examination will take up 20% of final mark of the course
Description of Task
Students are required to apply excel functions, financial loan tables, data analysis tools, and
forecasting techniques to solve financial problems including net present valuation approach,
capital cost estimation. The examination will take 45 minutes and will be in written format.


Assessment Task No. 4

Due Date

Final examination

TBA

50%

Submission Details
The final examination will be centrally examined and computer-based
Grading Criteria and Feedback
The total mark of mid-term examination will take up 50% of final mark of the course
Description of Task
Students are required to apply all sorts of excel functions, table techniques and data analysis
and plotting tools to solve financial problems such as net present valuation approach, capital
cost estimation and regression analysis, asset and option pricing and risk management,
portfolio optimization, and simulation of financial outcomes. The examination will take 1.5
hours.

Note: Unless stated otherwise, other assessment policies of Hanoi University and Faculty of
Management and Tourism that govern student manners are applicable to this course.