Finance Assignment Example | Topics and Well Written Essays - 1000 words

Finance - Assignment Example One should consider the following primary risk of buying stock on margin; enlarged losses due to amplified leverage. This happens when one experience a loss. He is accountable for repaying the money rented plus the interest on top of the loss when there is increased leverage. The second risk is maintenance call. It requires maintaining of a smallest amount equality level in the form of cash. When sustenance condition fails, a preservation call will be issued that requires one to sell securities, put down cash, among others, until the account meet the minimum equity requirement (Zweig, 2012). The necessities for the early acquiring of securities using rented assets are characteristically higher than the maintenance necessities. Apart from fed calls, one should also consider forced bankruptcy and finally the margin interest which one is required for repaying the interest on his/her margin loan regardless of any changes in interest that occurred during the time you loan was outstanding. They include; liquidity ratios. This type of ration is used to measure the ability of cash to pay debt. Activity ratios, measures the firm’s ability to repay long–term debt. Productivity ratios measures the firm’s usage of its benefit and control of its expenses to make a satisfactory rate of return and finally market ratios, which measures inventors’ reply to possessing a firm’s stock and also the price of issuing stock. These are also concerned with the return on investment for shareholders and with relationship between return and the worth of an investment in the company’s shares (Zweig, 2012). The difference is that the company using debts as leverage will prosper faster than an individual using margin in that, the company will enjoy the appreciation of the assets over time than an individual who borrows money to cover the risks. The other difference is that debts as leverage is used in mainly investment, but the margin is mainly applied to cover

Operations Management Assignment Example | Topics and Well Written Essays - 2000 words - 3

Operations Management - Assignment Example Finally, they can be used to develop systems to automate the processes they model (Gieskes, 2001). In the last case, programmers may use the process model as a guide in developing the information system or more recently, some process models can be run though process execution engines that automate the process directly from the model. A great deal of customization is often required in simulation systems modeling. From initial appearance, no system bears exact semblance to another and each time a new model is to be developed, the designer is compelled to begin from scratch. Simulation presents designers with powerful modeling tools which help in coming up with efficient systems. Interesting, even with these tools at the modelers’ disposal, they still get the feeling that they are reinventing again and again. There is always the suspicion that maybe the model they are about to design already exists or may be there already exists a model that sufficiently resembles the model to be designed. Either way, simulation provides a useful tool through which systems can be simulated. A number of techniques are often used in implementation of simulations. This project explores a specific type of simulation, a discrete event-based simulation, whereby events take place according to a schedule set on the fly as simulation plays out, with the main aim being to focus on points in time whereby interesting events take place and skip the dead spots in between the processes. For sparse simulations, where only a few events occur at irregular intervals, event-based simulation is extremely efficient. In the simulation described in this report, the dry cleaning establishment’s inner workings are modeled. Although taking note of the fact that an actual dry cleaning establishment is a physical store which not only occupies physical space, but is also complete with machinery, workers, customers, and other variables, there are further complexities than a typical model can incor porate. This simulation therefore operated a simple model but still captured the entire essential ongoing in dry cleaning process. To keep the simulation simple and reasonable, it is assumed that all garments to be dry cleaned are identical in size, weight, and material despite the fact that realistic differences are available in the process. It is assumed that over the course of time, the difference will even out. An average time is assumed for the clothing. Spreadsheet model versus ARENA modeling Discrete event modeling/simulation is largely use in generation of system predictions of states during time intervals, which are flexible in examination of what if situations. For instance, it is regularly used in evaluation of client waiting lines often referred to as a queue. The question typical of such models and simulations is how long customer will have to wait (averagely) in a line before a customer representative attends to him/her and if this wait time is too long, explore possib le ways of reducing it. Solutions may include adding servers. Modeling and simulation help explore these questions without the need to actually create and assess a physical situation as such a move could prove extremely expensive. Among the approaches often adopted in modeling are spreadsheet modeling and ARENA modeling. A model spreadsheet is defined as a ubiquitous software packages element available on many networked as well as personal microcomputer systems. It is primarily applied in