Explore BrainMass


Sensitivity Analysis vs. Scenario Analysis

Explain the difference between sensitivity analysis and scenario analysis. Offer an argument for the proposition that scenario analysis offers a more realistic picture of a project's risk than does sensitivity analysis.

Calculating Retirement Savings

A person plans to retire today and expects to begin living off their retirement savings beginning one year from now and continuing until death. Identify and explain key variables that will influence the amount of income that can be taken from retirement saving annually until death. How will increasing and decreasing these key va

Financial Analysis of Nissan

Provide a summary of financial analysis for Nissan for 2010 and 2011: Current Ratio Quick Ratio Cash Ratio Total Debt Ratio Debt Equity Ratio Times Interest Earned Return on Equity Return on Total Assets Net Profit/Sales Expense/Sales Asset Turnover Price Earnings Ratio

Additional Financing Required - Jones Company

Jones Company sales last year were $25 million and its total assets were $8 million. Accounts payable were $2 million and common stock and retained earnings were $5 million. Jones sales are forecasted to be $30 million this year, earnings after tax are expected to be 3% of sales, and dividends of $250,000 are expected to be paid

Additional Financing Needed With Nonproportionate Increase

ICU has current assets of $800,000 and net fixed assets of $1,400,000. The firm expects its sales to climb 25 percent next year from its current level of $3,500,000. ICU's only current liability is accounts payable of $1,200,000. If both current assets and current liabilities will increase proportionately with sales, what additi

Calculating Mutually Exclusive Projects

Trail Guides, Inc., is currently evaluating two mutually exclusive investment. After doing a scenario analysis and applying probabilities to each scenario, they have determine that the investments have the following distributions around the expected NPVs. Profitability NPV A NPV B 15% -$

healthcare budgets and management structure

As a member of the finance team, you have been asked to prepare the upcoming yearorganizational budget for your dietary department at Krona Community Hospital. After reviewing specific data, internal input, and external input from various sources, you find that the executive managerment team would like the gudget to reflect the

The INS and OUTS of Campaign Finance

Review the information provided on the Federal Election Commission's website before opening the assessment: You will find answers to the survey there: . Grading for this assignment is pass/fail. You must answer 100% of the questio

Loan factors

An effectively organized loan application reduces the time spent waiting for a response to a loan request. According to John Nelson III, SCORE counselor in Rhode Island and vice president of a major U.S. bank, "in about 80 percent of the cases, the formal request is not complete" (U.S. Small Business Administration, n.d.) What f

Components required to start-up a company's loan package

Imagine you are a loan officer presented with a loan package from a start-up company and one from a well-established company. What specific components would you require in the start-up company's loan package to approve the requested loan? How do your lending requirements for the start-up company differ from those for the establi

Managerial Finance Questions

Can someone please provide information on the following: (1) how working capital can impact a company's finances (2) what the company can do to handle short-term debt that is coming due (3) explain current ratio, discuss its implications, and describe a good current ratio (4) describe briefly how businesses make cap

The Impacts of Ford's Bailout Refusal

I am really struggling with this assignment. I need some direction on how to go about this and what I should use. Evaluate how the refusal of the federal government's bailout fund may have impacted Ford's financial performance negatively and positively.

A bank deposit paying simple interest at the rate

1) A bank deposit paying simple interest at the rate of 5%/year grew to a sum of $3100 in 10 months. Find the principal. 2) RETIREMENT FUNDS: Five and a half years ago, Chris invested $10,000 in a retirement fund that grew at the rate of 10.82%/year compounded quarterly. What is his account worth today? 3) SAVINGS ACCOUNTS

Production Costs - Samco Manufacturing

Samco Manufacturing has always purchased a certain component part from a supplier on the East Coast for $50 per part. The supplier is reliable and has maintained the same price structure for years. Recent improvements in operations and reduced product demand have cleared up some capacity in Samco's own plant for producing comp

What is Driving Oil Prices

Case Readings: Anderson, R and J. Buol (2005). "What is Driving Oil Prices." The Regional Economist. The Federal Reserve Bank of St. Louis. Retrieved from: 1. How do changes in supply and demand effect oil prices? 2. Which two countries are the largest c

Corporations, stocks, and dividends

I need assistance in answering these questions: - Why does a company choose to form as a corporation? What are the steps required to become a corporation? What are the advantages and disadvantages of the corporate form of doing business? - Why is preferred stock referred to as preferred? What are some of the features added

What financial problems may occur if a company has:

What financial problems may occur if a company has: - a high average collection period - has a history of paying its accounts payable late - a cash-only sales policy and it doesn't offer or accept any credit - a high percentage of bad debts, - reputation for having a substantial backlog of orders - and often takes twic

Constructing an Appropriate Portfolio.

You are the financial adviser to three individuals, a young person with high risk tolerance, a middle-aged person with medium risk tolerance and an old person with low risk tolerance. Here are the current conditions: - Risk free asset earning 12 % per year - Risky asset (or market portfolio) with expected return of 30% per

Risk Management in Emerging Markets

Risk Management in Emerging Markets Emerging markets pose different challenges from operational to financial risks; yet emerging markets often reveal possibilities for diversification and economic growth. How might an organization considering operations in an emerging market alter its risk management framework for that market?

Buying Products Regardless of Price

I need your opinion on the following the question: Provide the name of a product that you would continue to buy regardless of price. Why would you continue to buy that product?

Long-term investment

The management of Mitchell labs decided to go private in 2002 by buying in all 3 million of its outstanding shares at 19.50 per share. By 2006 management had restructured the company by selling off the petroleum research division for 13 million, the fiber technology division for 9.5 million, and the synthetic products division f