APPLICATION OF SIMULATION TO THE PROBLEM OF FINANCIAL PLANNING
Application of simulation to the problems of financial planning is illustrated with the help of following problem: A modern business corporation faces major financial decision making problems in varying situations and at a different stages of its development. Preparation of the company’s budget for the management decision is one of the most complex problem with which the planning department is faced with. Following are the critical factors to be described for the formulation of a budget, by the president of a company during the decision-making process:
- Amount of money to be borrowed
- Amount of existing debt to be paid
- Amount of dividend to be paid
- Amount of money to be allocated to ...
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