Effective and Efficient Use of Excel in Teaching Financial Ratios and Cash Flows

Abstract

This paper discusses using a particular Excel assignment in a Corporate Finance course at the undergraduate and graduate level. Excel worksheets allow students to more readily see interactions between concepts, and a finance major who is sufficiently skilled in Excel has an advantage entering the job market over those who are not. The paper discusses using an Excel assignment that requires students to complete financial statements and calculate financial ratios and cash flows. It also discusses methods for evaluating the worksheets that the students turn in. Grading Excel assignments can be tedious. This paper also discusses using resources within Excel to reducing the time spent on evaluating student work and making it more efficient.