Questions tagged [budgeting]

Budgets in corporate finance are forward plans in Capital and Operating streams. Capital budgets for large cash flows in fixed assets and investments. Operating budgets for revenues and expenses. Budgeting is relevant to Quant Finance as a budget is the outcome of a forecasting model. Executives are incentived to make or exceed budgets and so future stock prices may also be influenced or inferred. Questions related to calculation methods are welcome.

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How to calculate weighted average cost for a business units when there is more than one weight parameters to account?

Trying to solve how to allocate a cost (based on weight) to different units to justify cost distribution: Here is the problem. There are certain cost known to a live stock firm and only know at grand ...
user2850769's user avatar
2 votes
1 answer

Forecast 3m LIBOR USD. Budget purpose

How can I calculate/budget/find a expectation for the 3 month LIBOR for the next 3monts-4 years? I am calculating a CF scenario on USD 3month Libor + margin. With swaps and fixed rate this is easy, ...
Petter S's user avatar
1 vote
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How to rightfully balance the share of the organization between departments after variable changes?

This is an abstracted version of the problem I'm facing and I have to tell you first, my question might not be precise and or even correct, so I hope you understand and in that case can improve the ...
MarkokraM's user avatar
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6 votes
5 answers

How popular is the IRR as a tool for capital budgeting, nowadays?

This 2004 McKinsey Quarterly article reports that, back in 1999, three-quarters of CFOs always or almost always use[d] IRR when evaluating capital projects. The same article warns against the ...
jub0bs's user avatar
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