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Hands-On Financial Modeling with Excel for Microsoft 365

You're reading from   Hands-On Financial Modeling with Excel for Microsoft 365 Build your own practical financial models for effective forecasting, valuation, trading, and growth analysis

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Product type Paperback
Published in Jun 2022
Publisher Packt
ISBN-13 9781803231143
Length 346 pages
Edition 2nd Edition
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Author (1):
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Shmuel Oluwa Shmuel Oluwa
Author Profile Icon Shmuel Oluwa
Shmuel Oluwa
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Table of Contents (19) Chapters Close

Preface 1. Part 1 – Financial Modeling Overview
2. Chapter 1: An Introduction to Financial Modeling and Excel FREE CHAPTER 3. Chapter 2: Steps for Building a Financial Model 4. Part 2 – The Use of Excel Features and Functions for Financial Modeling
5. Chapter 3: Formulas and Functions – Completing Modeling Tasks with a Single Formula 6. Chapter 4: Referencing Framework in Excel 7. Chapter 5: An Introduction to Power Query 8. Part 3 – Building an Integrated 3-Statement Financial Model with Valuation by DCF
9. Chapter 6: Understanding Project and Building Assumptions 10. Chapter 7: Asset and Debt Schedules 11. Chapter 8: Preparing a Cash Flow Statement 12. Chapter 9: Ratio Analysis 13. Chapter 10: Valuation 14. Chapter 11: Model Testing for Reasonableness and Accuracy 15. Part 4 – Case Study
16. Chapter 12: Case Study 1 – Building a Model to Extract a Balance Sheet and Profit and Loss from a Trial Balance 17. Chapter 13: Case Study 2 – Creating a Model for Capital Budgeting 18. Other Books You May Enjoy

Relative referencing

Relative referencing is the default type of referencing in Excel. A reference is relative because when it is included as part of a formula that is copied to another location, the column and row of the reference will change by the same amount, relative to the position of the cell to which the formula is being copied.

Rather than type in values directly into cells, you should type the value in another cell and then enter the cell references of the cells containing the values, as shown in the following screenshot:

Figure 4.3 – The formula with the cell references

Entering the cell references rather than the values in the cells being referred to does not change the result of the formula. The only thing that changes is that you are now seeing cell references rather than values in the cells with formulas. However, when you decide to copy the formula to another location, the rules governing cell referencing come into play. Instead of...

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