BM2109

NAME: Jessica M. Ramos DATE: 09/10/2023 SCORE:

IMPORTANCE OF FINANCIAL MODELING (20 points: 4 items x 5 points)

Direction: Given below are some areas where financial modeling is used. In no more than three (3) sentences,
discuss the roles/activities of a financial modeler in each area.

• Equity Research Analysis

The financial modeler plays a big role in this area because they are the ones who are responsible. in
studying, researching, and analyzing the movements and trends of the corporate industry. Through the
data they have acquired, they can use it to formulate their ideas and steps and give an assessment that
will help the company for its future growth.

• Financial Planning and Analysis

In this area, the financial modeler is important because they are the ones who are being trusted in this
matter, especially in forecasting the business performance of a certain company. They predict, make
assumptions for the future, and project the growth within the organization. A Financial Modeler cannot
just give a forecast without any basis, which is why they conduct thorough research to give a relevant
opinion and judgment.

• Venture Capital
This area is important when it is an early stage of business because Financial Modelers or Freelance
Modelers are working on identifying how much investment is needed, and calculating and predicting the
returns that will be earned in the future from the business.

• Project Finance

In this type of area, the Financial Modelers evaluate the feasibility and viability of a project, which does
not only focus on one report, such as the cash flow return, but also on indifferent reporting, which is
helpful for them in making a decision. With this, most of the financial modelers have an excellent
understanding of financial concepts and regulatory requirements.

Rubric for grading:

CRITERIA PERFORMANCE INDICATORS POINTS
Content Provided pieces of evidence, supporting details, and factual scenarios. 3
Organization of Ideas Expressed the points in clear and logical arrangement of ideas in the 2
paragraph
TOTAL 5

01 Activity 1 *Property of STI

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