BBA/ B.Com Financial Modelling Dec 2024

Description

Financial Modeling

December 2024 Examination

 

 

 

Q1. Create an Excel-based customer information retirement planning financial model. The model should allow customers to enter their data, including their name, current age, annual income, desired age of retirement, life expectancy, current cost of living, average inflation rate, and required rate of return on investments. The Excel model should then calculate the retirement corpus needed, which is the total amount of money required at the start of retirement to cover living expenses throughout retirement, the periodic investment amount needed to reach the retirement corpus by the desired retirement age, the total investment made over time until retirement, and the return on investment (ROI) based on the required rate of return.

Students should write a step-by-step guide outlining the process of building the model in Excel. This guide should include instructions on setting up the input fields, defining the necessary calculations, and ensuring all formulas are accurate. Additionally, students should use the FORMULATEXT() function in Excel to display the formulas used in the model directly next to each calculation, making it easier to verify the work. Students are required to take screenshots of the Excel model, showing both the customer input fields and the calculated outputs, as well as the displayed formulas, and insert these screenshots into a Word document for submission.     (10 Marks)

Ans 1.

Introduction

Retirement planning is an essential aspect of personal finance, allowing individuals to secure their financial well-being in the post-retirement phase of life. With the rising cost of living and inflation, it has become increasingly important to accurately estimate the retirement corpus needed to maintain a comfortable lifestyle. In this answer, we will develop a comprehensive Excel-based financial model for retirement planning. The model will enable customers to input critical personal and financial information, such as their current age, annual income, and desired retirement age, and use this information to calculate the total retirement corpus required

 

It is only half solved

 

Buy Complete from our online store

 

https://nmimsassignment.com/online-buy-2/

 

NMIMS Fully solved assignment available for session DEC 2024,

 

your last date is 29^th Nov 2024.

 

Lowest price guarantee with quality.

Charges INR 299 only per assignment. For more information you can get via mail or Whats app also

Mail id is [email protected]

 

Our website www.aapkieducation.com

After mail, we will reply you instant or maximum

1 hour.

Otherwise you can also contact on our

Whatsapp no OR Contact no is +91 8755555879

 

 

Q2. Create an Excel-based visualization presentation of monthly sales data, given in the below table and explain the meaning and logic of charts used.

Month	Sales	Cost      of Sales	Gross Profit	GP%
31-Aug	100,000	68,000	32,000	32.0%
30-Sep	85,000	52,000	33,000	38.8%
31-Oct	98,000	53,000	45,000	45.9%
30-Nov	115,000	62,000	53,000	46.1%
31-Dec	125,000	82,000	43,000	34.4%
31-Jan	112,000	72,000	40,000	35.7%
28-Feb	118,000	71,000	47,000	39.8%

 

Students should write a step-by-step guide outlining the process of building the visualization in Excel. Students are required to take screenshots of the Excel model, showing both the input fields and the calculated outputs, as well as the displayed formulas if used any, and insert these screenshots into a Word document for submission. (10 Marks)

Ans 2.

Introduction

Data visualization in Excel is a powerful tool for analyzing and presenting financial data, allowing for clearer understanding and communication of business trends. In this exercise, we will build a visualization that displays the monthly sales, cost of sales, gross profit, and gross profit percentage (GP%) for seven months, from August to February. The objective is to demonstrate how visual representations, such as line charts and bar graphs, can provide insights into the company’s financial performance over time. This exercise will walk through the process of creating an Excel model, including input fields, calculations, and charts. We will also explain the significance

 

 

Q3. Excel function and Statements played a crucial role in job of financial Modeling,

1. a) Explain the difference between a statement and a function in Excel, particularly in the context of financial modeling. (5 marks)

Ans 3a.

Introduction

In financial modeling, Excel is an indispensable tool that provides a range of functions and statements to analyze, manipulate, and interpret financial data. Understanding the distinction between a function and a statement in Excel is essential for effective financial modeling. A function is a predefined formula that performs calculations or tasks, while a statement often refers to a block of code or formula entered by the user to define an operation or calculation. Both functions and statements play a crucial role in ensuring accurate and dynamic financial models.

Concept and Application

Difference Between a

 

 

1. b) Provide five prominent examples each of statements and functions in Excel, detailing how they are typically used in financial modeling. (5 marks)

Ans 3b.

Introduction

In financial modeling, statements and functions are core components of Excel, allowing analysts to manage, manipulate, and analyze financial data effectively. Statements define explicit operations like summing cells or applying conditions, while functions are predefined formulas that perform specialized tasks, such as calculating interest rates or net present value. Both are essential in creating robust, flexible, and accurate financial models. This section highlights five prominent