--%>
Assignment Help - homework help

Explain Financial Models

Financial Models: A model which symbolizes the financial statements or financial operations of a company in terms of its business parameters and forecasts future financial performance. Models are employed for risk management by examining various economic scenarios for the prospect. Financial models are too employed to give valuations of individual assets that may not be vigorously traded in the secondary market.

Mathematical symbolization of the key financial and operational relationships. Comprising of one or various sets of equations, it is employed in analyzing how a business will respond to various economic events or situations, and in estimating the result of financial decisions prior to committing any funds. A financial model usually comprises of cash flow projections, debt service, depreciation schedules, inventory levels, rate of inflation, and so on. It might also quantify the financial impact of the firm's policies, and of limitations or covenants imposed by investors and or lenders. A cash budget (that is whether computed by hand or with a spreadsheet program) is a fundamental financial model.

   Related Questions in Finance Basics

  • Q : Explain Merit Salary Adjustment Merit

    Merit Salary Adjustment (MSA): The cost factor resultant from the periodic raise in salaries paid to the personnel occupying authorized positions. The personnel usually receive a salary raise of 5 percent per year up to the upper sala

    		•
  • Q : Describe financial ratio Describe

    Describe financial ratio? This is a number which expresses the value of one financial variable relative to another. Put more cleanly, a financial ratio is the result you obtain when you divide one financial number by another.  Computing an

    		•
  • Q : Why do financial managers compute the

    Why do financial managers compute the marginal tax rate?Financial managers utilize marginal tax rates to estimate the future after tax cash flows from investments.  Because they are interested in how much of the next dollar earned through n

    		•
  • Q : Define Fiscal Impact Analysis Fiscal

    Fiscal Impact Analysis: Usually refers to a section of an analysis (example, bill analysis) which recognizes the costs and revenue impact of a proposal and, to the level possible, a particular numeric estimate for appropriate fiscal years.

    		•
  • Q : What is Operating Expenses and Equipment

    Operating Expenses and Equipment (OE&E): This is a class of a support appropriation which comprises objects of expenditure like general expenses, communication, printing, travel, data processing, tools, and accessories for the equipment.

    		•
  • Q : Define Planning Estimate Line Planning

    Planning Estimate Line: The separate planning estimate adjustment or entry for a specific expenditure or type.

    		•
  • Q : What is Audit Audit : Usually a review

    Audit: Usually a review of financial statements or performance activity (like an agency or program) to establish conformity or compliance with the applicable laws, regulations, and/or standards. The state has three central association

    		•
  • Q : Define One-Time Cost One-Time Cost : A

    One-Time Cost: A proposed or real expenditure that is non-recurring (generally only in one annual budget) and not permanently comprised in baseline expenditures. The departments make baseline adjustments to eradicate prior year one-time costs and suit

    		•
  • Q : Equilibrium price level and level of

    Normal 0 false false

  • Q : Recognizes and state the significance

    Normal 0 false false