Brandeis University
International Business School
IEF 218f – Financial Modeling II
Purpose of the Course
This course follows up on Financial Modeling I by continuing the quantitative analysis of
firms. It supplements Modeling I by doing more rigorous and involved valuations of firms
under various situations.
Course FAQs
1. Who should be taking this course?
Only those students that have completed Financial Modeling I should take this course.
This course represents the natural progression of the modeling curriculum.
2. What are the pre-requisite courses and/or useful experience required for this course?
Financial Modeling I and Corporate Finance are pre-requisites. Students not averse to risk
may take this course concurrently with Corporate Finance.
3. What skills will be developed in this course?
After completing this course, students should be able to understand and develop
sophisticated models of financial transactions.
4. What are the basic requirements/workload?
Student workload will be high. Students are expected to read the cases ahead of their due
date so that class discussions are optimized. Students should work in groups, and they
will do the cases at home in anticipation of the following week’s class discussion.
Materials for the Course
This course is entirely based on case studies, as shown in the course schedule. These may
be purchased directly from the HBS web site at the following URL that has been created
for this course:
https://cb.hbsp.harvard.edu/cbmp/access/23522975
Additional readings will be posted on Latte.
Grading
Students may work alone or in groups of two. Those wanting a group may form one
themselves (the mandatory operating language is English, though) or have me broker them
into one. I must approve each group. All case analyses will be submitted electronically.
The final grade will be based on the following:
 Case analyses (80%)
 Class participation (20% - Note: Lack of class participation and, for that matter,
quality class participation will result in a final grade no higher than a B.)
All case analyses will be returned within a week and final grades will be available the last
day of class.
Office Hours
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Tuesdays/Thursdays/Fridays: 11 am – 2 pm
Wednesday nights @9:20 pm
Walk-In: if my door is open, then I’m in, so look for me
By appointment - email me at canella@brandeis.edu
Disabilities
If you are a student with a documented disability on record at Brandeis University and
wish to have a reasonable accommodation made for you in this class, please see me
immediately.
Academic integrity
You are expected to be familiar with and to follow the University’s policies on academic
integrity (see http://www.brandeis.edu/studentlife/sdje/ai/). Instances of alleged
dishonesty will be forwarded to the Office of Campus Life for possible referral to the
Student Judicial System. Potential sanctions include failure in the course and suspension
from the University.
Brandeis University
International Business School
IEF 218f – Financial Modeling II
Week
Topic
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3rd
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4th
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5th
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6th
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2nd
Introduction
Valuation of a company in
bankruptcy
Industry-specific metrics
Treatment of capital expenses
Valuation of a telecom firm
Options valuation
Valuation of a new firm using
subscription based business
models
Comparables and sum of the
parts valuations
Valuation of a telecom firm
Controlling interest valuation
Strategic vs. Financial
acquisitions
Review and reflection
Case Due
Continental Airlines - 1992
Vodafone AirTouch’s Bid for
Mannesmann
Netflix.com, Inc.
Amtelecom Group Inc.
Spyder Active Sports - 2004