Corporate Risk Analysis
- Topics:
- Risk Analysis and Management
- Tags:
- Balance Sheets,
- Crystal Ball,
- Finance,
- Financial Accounting,
- Financial Statements,
- Management,
- Probability Distribution,
- Risk Analysis,
- Strategy
- Source:
- Crystal Ball
FREE Registration is required
Overview: The purpose in this article is to show that every item written into a firm’s profit and loss account and its balance sheet is a stochastic variable with a probability distribution derived from probability distributions for each factor of production. Using this approach one is able to derive a probability distribution for any measure used in valuing companies and in evaluating strategic investment decisions. Indeed, using this evaluation approach they are are able to calculate expected gain, loss and probability when investing in a company where the capitalized value (price) is known.
(Is this item miscategorized? Does it need more tags? Let us know.)
Format: PDF | Size: 359KB | Date: Nov 2001 | Pages: 31
