Describe what happens in scenario analysis and explain why firms such as Royal Dutch/Shell Group use the technique
What will be an ideal response?
Scenario analysis consists of developing plausible representations of a firm's possible future that make different assumptions about forces driving the market and include different uncertainties. Answers may vary on why to use the concept but answers should be mindful of the definition given. Students should try to anticipate the problems that are likely to aggravate in the energy industry and how scenario analysis may help the companies to anticipate the future and be prepared to adjust their processes accordingly.
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A company's income before interest expense and income taxes in 2014 and 2015 is $225,000 and $250,000, respectively. Its interest expense was $45,000 for both years. Calculate the company's times interest earned ratio, and comment on its level of risk.
What will be an ideal response?
Which of the following would probably be treated as a capital item by a large clothing manufacturer?
A. buttons B. computer-controlled fabric cutting machines C. zippers D. cloth E. None of these answers is correct.
The Excel function CHISQ.TEST() will return the ________
A) probability associated with a t-Test Statistic and the appropriate degrees of freedom B) probability associated with the degree of linearity observed within the groups C) test for independence: the value from the chi-square distribution for the statistic and the appropriate degrees of freedom D) left-tailed probability of the chi-square distribution
Which of the following statements does not describe a requirement that must be met in a tax-deferred forward triangular merger?
A. The continuity of business enterprise test must be met with respect to the target corporation. B. The target corporation shareholders must receive voting stock in the acquiring corporation. C. The acquirer must hold substantially all of the target corporation's properties after the merger. D. The 40 percent continuity of interest test must be met with respect to the stock transferred from the acquisition corporation to the target corporation shareholders.