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Financial Modeling Contest

Preparing an integrated financial model from the scratch for the equity valuation has always been a daunting task which requires both finance acumen and patience. Here is a challenging problem which checks both of these much-required qualities of a good modeler.


You are provided with the template of the LinkedIn incomplete model, which you need to figure out and complete. The blanks are highlighted with yellow color.

Following are 4 problems which you need to solve:

  1. Revenue Build-Up Sheet:
    • Making the projections for Number of registered Members and Corporate Solution Customers
    • Calculating the Quarterly Revenue from each head: Hiring Solution Revenue, Marketing Solution Revenue, Premium Solution Revenue
    • Finally consolidating quarterly revenues into yearly numbers and updating the P&L statement.
  2. Cash Flow Statement:
    • Preparing the complete Cash flow statement from the Profit & Loss statement and Balance sheet.
    • Updating the balance sheet by linking the Cash and Cash Equivalents row.
  3. Valuation Sheet:
    • Calculating the cost of Equity
    • Calculating the FCFF and FCFE and then discounting these free cash flows to get the Equity Value of the firm.
  4. Balance Sheet and P&L Sheet:
    • The Cash balance on the balance sheet will also earn some interest rate on it. Let suppose 4% per annum. Also if the cash balance of the company goes negative, they have any overdraft facility which charges at 6% per annum. You need to incorporate this interest calculation in the model.


How to submit?

You can submit your answer files mailing us at:

What the duration of the contest?

Contest is open from 11 AM, 19thFeb, 2011 till 9 A.M. IST 21st Feb, 2011.