Instructions:: This Is An Online, Closed Book Examination

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Instructions:

*****This is an online, closed book examination.

1. Log in to your Google Classroom account and download the file: Mid Term Financial Modeling and Valuation
please log out from your Google Classroom account. On completion of exam re-login and upload the solved she

2. No one but you should know your Google Classroom login id & password. If your password is misused by oth
penalized even if it is unintended.

3. Only one submission on Google Classroom is allowed. After submitting the file on Google Classroom please d

4. Preferably submit the file 5 minutes before the scheduled completion time.

5. Financial/Scientific Calculators are permitted.

6. Use your name as the file name when saving your solution on Google Classroom . DO NOT UPLOAD MULT

7. Please ensure you have enabled Solver and Data Analysis options in Excel

8. Write your answers in designated cells otherwise, your work may not get evaluated

Question 1,2, 3 and 6 are mandatory , Choose any one of Q4 or Q5 [ Total Marks = 50]
nstructions:

ncial Modeling and Valuation Techniques.xls. After downloading ,


gin and upload the solved sheet.

r password is misused by others all parties would be equally

on Google Classroom please do not try to open it again.

om . DO NOT UPLOAD MULTIPLE FILES.

ated

arks = 50]
Name: Chandan Kumar

Enrollment No: 9
Quarter Loan Volume Assets Members Prime Rate Frequency distribution: Loan value
Mar-96 2,583,780 4,036,810 3,522 6.25 Bin
Jun-96 2,801,100 4,164,720 3,589 6.75 2583780
Sep-96 2,998,240 4,362,680 3,632 7.13 3027750
Dec-96 3,032,720 4,482,990 3,676 7.75 3471720
Mar-97 3,094,580 4,611,300 3,668 8 3915690
Jun-97 3,372,680 4,696,720 3,689 8.63 4359660
Sep-97 3,499,350 4,844,960 3,705 9.41 7000000
Dec-97 3,553,710 4,893,450 3,722 11.55
Mar-98 3,651,870 5,089,840 3,732 11.75
Jun-98 3,832,440 5,185,360 3,770 11.65
Sep-98 4,013,310 5,381,140 3,845 12.9
Dec-98 3,950,100 5,413,720 3,881 15.3
Mar-99 3,925,100 5,574,160 3,923 18.31
Jun-99 3,717,480 5,838,990 3,941 12.63 SUMMARY OUTPUT
Sep-99 3,712,300 6,150,350 3,955 12.23
Dec-99 3,677,940 6,133,030 3,943 20.35 Regression Statistics
Mar-00 3,724,770 6,119,030 3,960 18.05 Multiple R
Jun-00 3,787,760 6,221,090 3,971 20.03 R Square
Sep-00 3,981,620 6,229,000 3,993 20.08 Adjusted R Squar
Dec-00 3,848,660 6,412,230 4,011 15.75 Standard Error
Mar-01 3,619,830 6,795,830 4,040 16.5 Observations
Jun-01 3,623,590 7,538,210 4,103 16.5
Sep-01 3,632,120 8,496,080 4,133 13.5 ANOVA
Dec-01 3,482,000 9,979,390 4,173 11.5
Mar-02 3,378,500 11,475,300 4,218 10.5 Regression
Jun-02 3,433,470 12,116,900 4,266 10.5 Residual
Sep-02 3,615,430 12,686,500 4,305 11 Total
Dec-02 3,865,780 13,457,600 4,657 11
Mar-03 3,955,270 14,118,300 4,741 11.21 Coefficients
Jun-03 4,394,140 14,448,600 4,826 12.6 Intercept
Sep-03 4,803,630 14,687,200 4,943 12.97 Assets
Members
Frequency distribution: Loan value Frequency Distribution: Assets
Frequency Cumulative % Bin Frequency Cumulative %
1 3.23% 4036810 1 3.23%
2 9.68% 6166888 16 54.84%
5 25.81% 8296966 5 70.97%
16 77.42% 10427044 2 77.42%
5 93.55% 12557122 2 83.87%
2 100.00% 92557122 5 100.00%

MARY OUTPUT

egression Statistics
0.865965
0.749896
0.732031
226827.8
31

df SS MS F Significance F
24319463561772 2.16E+12 41.97662 3.747E-09
281440623257905 5.15E+10
305760086819677

Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0%
-6084002 1273118.15537 -4.77882 5.077E-05 -8691866 -3476137.7429 -8691866 -3476138
-0.218247 0.0410538596 -5.316107 1.169E-05 -0.302342 -0.1341516963 -0.302342 -0.134152
2824.33 389.021582021 7.260086 6.652E-08 2027.4557 3621.2048733 2027.456 3621.205
Refer the sheet named “data for test” to answer following questions

Q1. Change the following name range (‘Old name’ to ‘New name’) in the data sheet [1 Mark]
Old name New name
Bin.Assets LCL.Assets
Bin.Loan LCL.Loan
[8Marks] Q2. If the Loan Amount can be estimated using following equation

-6084002.03 - 0.218246714 x Assets + 2824.330297 x Members

[2 Marks] a) Refer Range M3:N4. Name the cell N3 as 'Members' and N4 as 'Assets'

[1 Mark] b) Using the above formula calculate the loan amount in cell N5 for Members = 2500 and Assets = 450023

[5 Marks] c) Create a 'data table' for following values of ‘Members’ and ‘Assets’ in range K15: Q21. Use the above
formula (formula shall be entered in cell K15 (highlighted) .

Members: 3522 3806 4090 4374 4658 5000


Assets: 4036810 6166888 8296966 10427044 12557122 92557122
Members : 2500
Assets: 450023
Loan Amount -2737933882937

nd Assets = 450023

21. Use the above

-2.738E+12
-2.456E+13 -3.75E+13 -5.047875E+13 -63438146784947 -7.64E+13 -5.63E+14 0
1.1401E+10 1.74E+10 23433372447 29449416277.352 3.55E+10 2.61E+11 0
0 0 0 0 0 0 0
0 0 0 0 0 0 0
0 0 0 0 0 0 0
0 0 0 0 0 0 0
Refer the sheet named “data for test” to answer following questions

Q3. Assuming relationship

Loan Amount = -6084002.03 - 0.218246714 x Assets + 2824.330297 x Members

Generate data as instructed and and attempt question (a) and (b) below on the data. Data shall be of loan amount for 40 data p
‘Members’. For ‘Assets’ use 40 random numbers following uniform distribution between 0 and 1 with random seed of 12; crea
For ‘Members’ use 40 random numbers following uniform distribution between 0 and 1 with random seed of 76; Create this d
Marks]
a)      Present Descriptive Statistical analysis for both variables targeting the cell E15.
b)      Draw histogram using appropriate bins for both variables (Assets starting in I 15 and Members in M15).

Solution:
Assets data Members Data Assets data Members Data
-2.8269278118 -2.3769462132
-0.9472410056 -0.9751670405 Mean -0.252939145 Mean
-0.8771917237 -1.3973885871 Standard E 0.1854512114 Standard Error
1.2087684809 1.2018062989 Median -0.304704031 Median
-1.6691092242 -0.8662300388 Mode #N/A Mode
0.8347080893 -0.0817533419 Standard D 1.1728964456 Standard Deviation
-0.2659908205 -0.0649538379 Sample Var 1.3756860721 Sample Variance
1.3613407646 -0.8562528819 Kurtosis -0.65488702 Kurtosis
-0.3434172413 0.2920000952 Skewness 0.0313898957 Skewness
0.4753451321 0.4531921149 Range 5.0205744628 Range
-1.1530028132 0.9765199138 Minimum -2.826927812 Minimum
1.1441261449 1.7477486836 Maximum 2.193646651 Maximum
-1.0697362995 -0.2992715054 Sum -10.11756581 Sum
-1.4906572687 -0.2921592568 Count 40 Count
0.6864229363 -1.2941200112
0.9752898222 0.520813046
-1.3163548829 -0.0679438017
0.1249020443 0.0915042619
0.7124094736 -0.4192838787
-1.5301475287 -2.3411121219
0.9178165783 -1.1925658328
0.3652485248 1.1687598089
-0.9966834114 -0.0368424935
-0.3600189302 -1.5563182387
1.3473663785 -0.169991381
-1.3394469534 0.4941875886
0.4811772669 -0.5155652616
-1.2704504115 -0.5798301572
1.709904609 -0.0656450538
-0.1249020443 -0.6284017218
-0.9399559531 -1.8138234736
0.7016058134 -1.7369256966
-1.1389897736 -0.4222931693
2.193646651 -0.7773292054
-2.3692700779 0.3530897175
-0.9818336366 0.1925445758
-0.0667182576 -0.0287286639
-0.2655951903 -1.1933457245
-1.5803925635 -3.3550895751
-0.433610694 1.7894035409
l be of loan amount for 40 data points created for ‘Assets’ and
1 with random seed of 12; create this data in cell range A15 to A55 .
andom seed of 76; Create this data in cell range B15 to B55 . [10

mbers in M15).

Bin Frequency Bin Frequency


-2.826928 1 -3.35509 1
-0.403092713 -1.990165 1 -2.497674 0
0.173025498 -1.153403 7 -1.640259 4
-0.295715381 -0.316641 11 -0.782843 8
#N/A 0.520122 8 0.074573 15
1.094309334 1.356884 9 0.931988 7
1.1975129185 More 3 More 5
0.5159295638
-0.327438555 Histogram Histogram
5.1444931159 20
10 20
Frequency

-3.355089575 10
Frequency

0 Frequency 0
1.7894035409 Frequency
8 9 3 re 1 4 2 re
-16.12370852 8 11 990 218 Mo 75 536 502 Mo
7 2 1 5
6 9 2 3 4 0 52 0 9 8 2
0 8 0 2 5 4 57
40 .
Bin
82 15 0 . . 5
5 4 7Bin
-2 -1 3 .3 1.6 0.0
- -
am
Frequency
e
or
M
Question : (20 Marks)
You are Senior Human Resource manager, interested in estimating the possible selections from campus interview. You have
The past results indicated that in 96 campus visits, total 325 students were addressed in pre placement talks of which 124
salaries ranging from 50000 to 85000 per month CTC; whereas company fixed these salaries through a process. Using this
(a) What is the probability of successful candidates appearing in the job interviews?
(b) Generate a random number in cell C25, paste it as value in C25, write a Vlookup formula in D25 which uses and random
you will be evaluated.)
(c) The company decides to maintain the normally distributed average number of visits in that region as per past data, with
next 5 years) in the region selected above. (Use whatever applicable of the function Match,Vlookup, Monty Carlo etc. to g
(d) How many students would apply for job interview in that region if the trend follows normal distribution with SD of 4 stu
(e) Simulate expected salary for each selected candidate.

Frequency tables from past data

Number of
Students opting for campus visits
S.No. Region interview in that region
1 Punjab 20 12
2 Lucknow 32 18
3 Patna 16 20
4 Jaipur 14 19
5 Bhopal 30 17
6 Hyderabad 12 10
124 96

1
10 Hyderabad
number of visits in current year = 12 10
Number of visits made by the company in Hyderabad
1st year 15
2nd year 15
3rd year 18
4th year 15
5th year 17
pus interview. You have the past data of campus interview conducted in various engineering colleges.
ment talks of which 124 opted to apply for job vacancies. 24 Successful candidates have expectation of
h a process. Using this data answer the following questions:

which uses and random number generated in C25 to provide one regions. (The excel formula used by

n as per past data, with standard deviation of 2 visits . How many visits company would make (over
p, Monty Carlo etc. to generate these 5 values)
ibution with SD of 4 students.

No. of
successful
Pay bracket students
50,000 to 60,000 3
60,000 to 65,000 5
65,000 to 70,000 12
70,000 to 75,000 3
75,000 to 85,000 1
24

Probability of successful candidate 19%

Number of students apprearing in Hyderabad


23
24
17
26
13
Question: Consider a simple profit model of a XYZ Co. in Australia. It consists of 6 input variables and a simple cost and re
containing 1.28 g/ton gold, it will make a $ 5.56 million profit.

(Answer the following question in same worksheet)


[2 Marks] a) View the sheet in formula view. Identify the cells in which formula is written, explain the formula in adjacent c
[2 Marks] b) The inputs are given in column C and Range names in column D. Name the range for each input cell in the mo
[4 Marks] c) create a two way data table (starting cell J5) to calculate profit if Gold Grades ranging from 1.5 to 2.1 g/t Au (in
(incrementing by 0.1).
[4 Marks] d) (Answer this question in cell C22) Using Vlookup and Match function find the profit if Gold Grade is 1.70 g/t

(Answer the questions given below in separate worksheet)


[8 Marks] e) Present the descriptive statistics (starting cell B30) of profit from the simulated 1000 data points if Gold Grade
distribution with mean of 0.903 and SD of .02 A$/U$.

Input Range Names Unit of Measurement


Ore Tonnes 1,000,000 Tonnes t
Gold Grade 1.68 Grade g/t Au

Gold price 1,200 Price U$/Oz Au


Exchange Rate 0.92 ExRate A$/U$

Mine Unit Cost 40 MineCost $/t


Process Unit Cost 25 ProcessCost $/t

Total Cost 65,000,000 TotalCost $

Revenue 70,452,018 Revenue $

Profit 5,452,018 Profit $


6 input variables and a simple cost and revenue model to produce a profit. If the Co. mine and treat 1,000,000 ton of gold ore

s written, explain the formula in adjacent cell of column F .


me the range for each input cell in the model.
d Grades ranging from 1.5 to 2.1 g/t Au (incrementing by 0.05) and a Row of Exchange rates varying from 0.70 to 1.00 A$/U$

on find the profit if Gold Grade is 1.70 g/t Au and Exchange rates 0.92 A$/U$.

e simulated 1000 data points if Gold Grade follows uniform distribution between 1.5 to 1.94 g/t Au and Exchange rates follow a Norm

Explain Formula

Starting g cell for data table


00,000 ton of gold ore

0.70 to 1.00 A$/U$

Exchange rates follow a Normal


Present Value 17888
Interest 0.065
Months 60
Payment Rs. -1,189.92

Calculate a Car Payment

Select Cell B4 and use the Function tool to calculate the PMT  [1 marks]


What PV (cell B1) would meet the goal of a paying $350.00 for 60 months? [2 marks]
Answer of second question ($5,261.54)

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