Scenario Analysis In Finance Essay Example

Scenario Analysis In Finance Essay Finance Scenario Analysis Introduction Scenario 1: Increased expenses used in financing Increasing the level of expenses alongside increased revenues in the overall leads to a decrease in the EBIT. The increase in the amount of expenses happens to be at a higher rate than that the increase in the revenue and this depreciates the level of operating income obtained after deducting expenses. Expenses such as advertising, sales and distribution as well as administration expenses have a heavy weight on the income level and this leads to the reduction in the profits level of the company. From the analysis, it is clear that the increase in the amount of corporate expenses as well as the selling, general and administrative expenses from (2.2M, 12.9M) in 1997 to (4.2M, 30.7M) in 1999 significantly affects the operating income. Ideally, selling, general and administrative expenses take a significant portion of the expenses. Irrespective of the tax amount charged, the net profit after taxes will always decrease with increase in the variable and fixed expenses. In the above scenari o, EBIT decreased from $157,501 in 2001 to $252,034 in year 2004. We will write a custom essay sample on Scenario Analysis In Finance specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Scenario Analysis In Finance specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Scenario Analysis In Finance specifically for you FOR ONLY $16.38 $13.9/page Hire Writer Scenario 2: Financing assets through significant capital expenditure Ideally, increasing the amount of capital allocated to making capital expenditures through investment in assets is profitable and though leads to incurring of huge initial outlay, it results to increase in revenues especially when the items acquired are used in the generation of additional cashflows. The assets purchased have different payback times and while others take a short time to generate revenues which cover the costs incurred in purchasing them, others have long payback times but the overall aim was to generate an incremental cashflow which in this case can be seen to have increased from $2.035M in 1997 to 18.6M in 2001 and finally to $138.7 M in 2004. Scenario 3: Increasing debt ratio and earning per share The increase in debt ratio which is brought about by increasing borrowings from external sources can be seen to have a negative effect on the cashflows mainly because it leads to the reduction in the equity level. Failure of the organization to generate enough cashflows from utilizing its assets efficiently and to be in a position to repay off its debts is what makes the cashflows adverse. One of the consequence of this is reduced earnings per share since more money is used to pay off debts and less is distributed to the shareholders.

asians essays

asians essays At its inception, the United States was built on principles of freedom, justice, and liberty. A reaction to tyranny and oppression, its creation sought to bring change to centuries of inequity under the British monarchy. But no change is sudden; the growth and evolution of the United States has taken centuries and is still in a state of continual development. In the past year, however, this country has taken an additional step toward progress through the presidential appointment of two Asian Americans, Norman Mineta and Elaine L. Chao, to the Department of Transportation and the Department of Labor, respectively. The acceptance of Asian Americans in the government's high offices has influenced public opinion in many way; most of all, it acknowledges the power of Asian Americans in the community and help break existing stereotypes regarding the social roles of those with Asian heritage. For over a century, Asian influence has been overlooked in history books. As a result of the appointment, America is coming to terms with the fact that Asians are a crucial part of American government and have always been a rich part of American history. According to the PBS special Ancestors in the Americas, Chinese immigrants have been "invisible" in the American story, even though "their presence was pervasive and economically pivotal." It points out the simple fact that the Transcontinental Railroad was built largely with the work of Chinese laborers, yet none are to be found in celebratory pictures of its completion or in the pictures of workers found in archives. High positions in government, however, such as working on the presidential cabinet, cannot be ignored or overlooked. They don't have to attempt to make history; they are already making history with every proposition, with every day. Moreover, the appointment of Asian Americans to such high positions means that they can directly influence public policy,...

WHAT I LEARNED IN THE CLASS Essay Example | Topics and Well Written Essays - 500 words

WHAT I LEARNED IN THE CLASS - Essay Example As the word TEAM stands for Together Everyone Achieves More, a team leader needs to be proactive for efficient management of the relationship among the teammates and with the external members. I learned that to achieve organizational goals, the leader or manager needs to carefully define the duties and responsibilities for each employee and also standardize method of executing the tasks. Duties and responsibilities are defined by training, teaching and developing each worker to do the right job. The environment is constantly changing, and businesses have no control over the external environment. Businesses can only influence the internal environment and they require a framework of legal, social, political, economic and cultural factors. The internal factors include policies and plans, workers, business objectives and other factors with the business or organization. For the businesses to remain competitive, the managers need actively plan, organize, provide directions and coordinate the activities to adapt to the changing environment. For businesses to thrive, managers must achieve performance targets set by the business. The managers achieve these goals by focusing on their jobs and by motivating their subordinates. Working together as a team is important for the quality of output, retention and morale. It increases the productivity, improves quality, reduces costs and enhances speed. According to Frederick Brook in his book, The Mythical Man-Month, the time an individual takes to accomplish a task can be reduced by hiring more workers to assist in the completion of the job. An effective team has continual feedback on its performance, focuses on performance and has skilled members. Sometimes the team may fail due to lack of effective communication, proper chattering and goal setting, clear roles and trust. In a team environment, managers and