Chapter 6

Excel Tools and Techniques for Financial Modeling

IN THIS CHAPTER

check Introducing cell referencing

check Applying named ranges

check Dealing with links and the potential errors they can cause

check Improving your modeling skills with shortcuts

check Restricting user entry with data validations

check Working out a break-even point with goal seek

When you’re using Excel for the purpose of financial modeling, much of the emphasis is on selecting the right function to include in the formulas to calculate the results of the model. Besides functions, a number of tools and techniques are also useful to include in your models. Chapter 7 focuses on Excel formulas. This chapter looks at some of the other practical tools and techniques commonly used in financial modeling in Excel.

Referencing Cells

In Chapter 3, I explain why not every spreadsheet built in Excel is a financial model. In order to be able to call ...

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