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.

Free Essays on Feminist Analysis Of Heartbreakers

This film is possibly a representation of both love and violence in relation to gender. The mother-daughter team in this movie use â€Å"love† to swindle men out of their money. Sigourney Weaver and Jennifer Love-Hewitt play Angela and Paige, the con artists that use their good looks and a long list of cons to get meals, hotel rooms, marriages, and hefty divorce settlements when something â€Å"accidentally† goes wrong. Heartbreakers (David Mirkin, 2001) is an exploration of femininity, sexuality, and the usage and affects on the male population and the women that posses these traits. Angela marries at the beginning of the movie, for the thirteenth time, and creates a scam involving her daughter, only to divorce Dean, (Ray Liotta) seventeen hours after the marriage. They get away with a three-hundred thousand dollar settlement, but do not realize that it won’t be the last they see of Dean. They end up in Palm Beach to try to con an old, heavy smoker, Tinsey (Gene Hackman). This is where Paige meets Jack, a man she initially wants to con out of his business; but since she is young, she falls in love with him instead. These women feel that men will only hurt them and leave them, so it is better to beat them at their own game, and then go ahead and take all of their assets. Angela, Paige’s mother, is inherently afraid of being alone, and eventually ends up conning her own daughter in order for her to stay with her. She is trying to protect her from love as well, because â€Å"love is pain†. She taunts and gets angry when she realizes that Paige has fallen in love, reaffirming that Paige would be no good at conning on her own because of the fact that she will fall in love with the men. Woods, 2 At one point when Paige calls Jack (the one she falls in love with) cute, Angela reprimands her by saying â€Å"cute leads to feeling; feeling leads to screwing; and screwing leads to getting screwed.† Angela insists that they ... Free Essays on Feminist Analysis Of Heartbreakers Free Essays on Feminist Analysis Of Heartbreakers This film is possibly a representation of both love and violence in relation to gender. The mother-daughter team in this movie use â€Å"love† to swindle men out of their money. Sigourney Weaver and Jennifer Love-Hewitt play Angela and Paige, the con artists that use their good looks and a long list of cons to get meals, hotel rooms, marriages, and hefty divorce settlements when something â€Å"accidentally† goes wrong. Heartbreakers (David Mirkin, 2001) is an exploration of femininity, sexuality, and the usage and affects on the male population and the women that posses these traits. Angela marries at the beginning of the movie, for the thirteenth time, and creates a scam involving her daughter, only to divorce Dean, (Ray Liotta) seventeen hours after the marriage. They get away with a three-hundred thousand dollar settlement, but do not realize that it won’t be the last they see of Dean. They end up in Palm Beach to try to con an old, heavy smoker, Tinsey (Gene Hackman). This is where Paige meets Jack, a man she initially wants to con out of his business; but since she is young, she falls in love with him instead. These women feel that men will only hurt them and leave them, so it is better to beat them at their own game, and then go ahead and take all of their assets. Angela, Paige’s mother, is inherently afraid of being alone, and eventually ends up conning her own daughter in order for her to stay with her. She is trying to protect her from love as well, because â€Å"love is pain†. She taunts and gets angry when she realizes that Paige has fallen in love, reaffirming that Paige would be no good at conning on her own because of the fact that she will fall in love with the men. Woods, 2 At one point when Paige calls Jack (the one she falls in love with) cute, Angela reprimands her by saying â€Å"cute leads to feeling; feeling leads to screwing; and screwing leads to getting screwed.† Angela insists that they ...