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3 years ago

Scenario analysis is a way of testing forecasts by changing one assumption at a time.

Business

1 answer:

weqwewe [10]3 years ago

4 0

<u>Answer:</u>

False

<u>Explanation:</u>

Although scenario analysis is a way of testing forecasts but not necessarily one assumption at a time.

Scenario analysis is done by keeping all the key risks in mind and predicting the possible outcomes, primary effects and secondary effects on a project. Secondary effects are further analysed to see if there are any other possible risks to consider.

It is not compulsory to change just one attribute at a time, many factors are alone and together analysed to predict better and have a proper set of actions ready to tackle the crisis.

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Suppose when you are 21 years old, you deposit $1,000 into a bank account that pays annual compound interest, and you do not wit

Alekssandra [29.7K]

Answer:

After 44year at interest rate of 6%

You will have $12,985.5 in your account

Explanation

Step one

Applying the compound interest formula we have A = P (1 + r/n)^nt

A = Final amount

r= nominal annual interest rate in percentage terms,

and n = number of compounding period

Where P = Principal

t= time in years

Given p=$1,000

n=44

r=6%

Step two

Inserting our given information

A=$1000 [(1 + 0.06/1)^44*1]

A=$1000 [(1.06)^44*1]

A=$1000*12.9854819127

A=$12,985.5

3 0

2 years ago

Read 2 more answers

It is important to shop around for credit because banks and financial institutions have varying credit histories. charge differe

JulsSmile [24]

Answer:

follow different laws

Explanation:

In simple words, Shopping around is really a good idea, whether you're obtaining your first credit account or you've already established credit and want more of it. Searching widely is often the only way to locate a lenders that will cooperate with you. It's also the greatest method to obtain a decent bargain in some instances.

Different creditors have different laws, which affect their terms and conditions regarding interest rate, tenure etc.

8 0

2 years ago

Trak Corporation incurred the following costs while manufacturing its bicycles. Bicycle components $100,000 Advertising expense

Furkat [3]

Answer: Please refer to Explanation

Explanation:

Bicycle components - DIRECT MATERIALS

- Needed in the production of the bicycles.

Depreciation on plant. MANUFACTURING OVERHEAD.

- Indirect expense that relates to the production plant.

Property taxes on store. PERIOD COST.

Expense related to the sales of the bicycles that must be expensed in the period incurred.

Labor costs of assembly-line workers. DIRECT LABOUR.

Main labour associated with the production of the bicycles. They are DIRECTLY involved.

Factory supplies used. MANUFACTURING OVERHEAD.

Used in the Factories but not directly related to the production of the bicycles.

Advertising expense. PERIOD COST.

It is spent in the period that it is incurred therefore it is a period cost.

Property taxes on plant. MANUFACTURING OVERHEAD. Indirect expenses that are incurred in relation to the production of bicycles.

Delivery expense. PERIOD COST.

Expensed in the period it is incurred.

Sales commissions. PERIOD COST.

Expensed in the period it is incurred.

Salaries paid to sales clerks. PERIOD COST.

Expensed in the period it is incurred.

3 0

2 years ago

Which of the following is the best definition of marketing research? A) The process of analyzing secondary information and provi

Marina86 [1]

Answer:

The correct answer is D) The process of designing, gathering, analyzing, and reporting information that may be used to solve a specific marketing problem.

Explanation:

The definition of marketing research is process of gathering, analyzing and interpreting information about a market, about a product or service to be offered for sale in that market, and about the past, present and potential customers for the product or service; research into the characteristics, spending habits, location and needs of your business's target market, the industry as a whole, and the particular competitors you face

5 0

3 years ago

Star, Inc., a prominent consumer products firm, is debating whether or not to convert its all-equity capital structure to one th

Dmitry_Shevchenko [17]

Answer:

Explanation:

1) The earnings per share are:

EPS = $39,100/17,000 shares

EPS = $2.30

Cash flow for the company is:

Cash flow = $2.30 X 150 shares

Cash flow = $345

2) Need to determine the EPS of the firm under the proposed capital structure. The market value of the firm is:

MV = $47*17,000 = $799,000

Under the proposed capital structure, the firm will raise new debt in the amount of D = 0.20*$799,000 = $159,800 in debt. The number of shares repurchased will be:

Shares repurchased = $159,800/$47 = 3400

Under the new capital structure, the company will have to make an interest payment on the new debt. The net income with the interest payment will be:

NI = $39,100 – 0.065*$159,800 = $39100-10,387= $28,713

EPS under the new capital structure will be:

EPS = $28,713/13,600 shares = $2.11

Shareholder cash flow = $2.11*150 shares = $316.5

3) In this case, capital structure is irrelevant because shareholders can create their own leverage or unlever the stock to create different capital structures. This has no connection with the capital structure that firm chooses.

6 0

3 years ago