Corporate Finance Spreadsheets

ABOUT THIS CONTENT

These spreadsheets are most useful if you are interested in conventional corporate financial analysis. It includes spreadsheets to analyze a project's cash flows and viability, a company's risk profile, its optimal capital structure and debt type, and whether it is paying out what it can afford to in dividends.

Spreadsheets included:
• capbudg.xls - This program allows you to do a basic capital budgeting analysis for a project, and compute NPV, IRR and ROI.

• risk.xls - This program allows you to use past returns on a stock and a market index to analyze its price performance (Jensen's Alpha), its sensitivity to market movements (Beta) and the proportion of its risk that can be attributed to the market.

• levbeta.xls - This program allows you to enter the current beta, tax rate and the debt equity ratio for your stock, and obtain a table of betas at different debt ratios.

• ratings.xls - This program allows you to estimate a rating and a cost of debt for your company from the firm's interest coverage ratio.

• capstru.xls - This program allows you to estimate an "Optimal" Capital structure for a company using the cost of capital approach.

• capstruo.xls - This is a variant that allows you to estimate an "Optimal" capital structure for a company whose operating income might vary with its debt rating - for instance, financial service firms.

• macrodur.xls - This program allows you to estimate the duration of a firm's assets and its sensitivity to other macro economic variables. It may be useful in the design of debt.

• dividends.xls - This program compares the dividends paid to what a firm could have paid, by estimating the free cash flow to equity (the cash flow left over after net debt payments, net capital expenditures and working capital investments.

• dcfval.xls - This program computes the value of equity in a firm using a two-stage dividend discount and FCFE model. (For more extensive choices on valuation, look at the programs under the valuation section below.)