Financial modelling is a representation in numbers of a company's operations in the past, present, and the forecasted future. Such models are intended to be used as decision-making tools. Company executives might use them to estimate the costs and project the profits of a proposed new project. Financial analysts use them to explain or anticipate the impact of events on a company's stock, from internal factors, such as a change of strategy or business model to external factors such as a change in economic policy or regulation.
Financial models are used to estimate the valuation of a business or to compare businesses to their peers in the industry. They also are used in strategic planning to test various scenarios, calculate the cost of new projects, decide on budgets, and allocate corporate resources. Minor in Financial modelling will help the student to prepare basic financial models using Microsoft excel and enrich their knowledge and experience, enabling them to understand the financial aspects of an organisation and its presentation; thereby expanding their career opportunities.
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