This essay has been submitted by a student. This is not an example of the work written by professional essay writers.
Finance

 Advantages and disadvantages of factor models in finance

Pssst… we can write an original essay just for you.

Any subject. Any type of essay. We’ll even meet a 3-hour deadline.

GET YOUR PRICE

writers online

 Advantages and disadvantages of factor models in finance

Financial modeling is used in many corporations in daily operations since it is vital in strategic decision-making. For instance, if a company wants to take over another company, it must make a financial model first. The following are the pros and cons of financial modeling.

Advantages

  • Financial modeling deepens the understanding of the business in many divergent ways for decision faster decision making.
  • Financial modeling helps in making the correct financial evaluation in the business since it gives a general overview of the performance of the organization.
  • Financial modeling is critical in making a decision on the best type of funding that the organization can employ.

Disadvantages

  • Financial modeling is time-consuming since it requires a different task before creation.
  • Financial modeling does not feature in the soft factor of the acquired companies; the process takes synergies and usually done by reducing expenses.
  • Financial modeling is inaccurate since it cannot predict factors such as market share, tax rates, and interest rate of the organization.

 

  Remember! This is just a sample.

Save time and get your custom paper from our expert writers

 Get started in just 3 minutes
 Sit back relax and leave the writing to us
 Sources and citations are provided
 100% Plagiarism free
error: Content is protected !!
×
Hi, my name is Jenn 👋

In case you can’t find a sample example, our professional writers are ready to help you with writing your own paper. All you need to do is fill out a short form and submit an order

Check Out the Form
Need Help?
Dont be shy to ask