FMVA - Scenario & Sensitivity Analysis
in Excel Exam Questions & Answers
Recommended Prerequisites - ANSWERSYou are expected to have either completed the stated
prerequisite courses or possess the equivalent knowledge prior to enrolling in this course:
Building a Financial Model in Excel
Business Valuation Modeling
Scenario Analysis - ANSWERSMultiple inputs changed at once.
A story (or "scenario") about the future.
Typically represents several business cases.
Scenarios will be compared and risks weighted.
Sensitivity Analysis - ANSWERSOne assumption changed at a time.
No story about why inputs go up or down.
Used to determine which assumptions matter most.
A form of risk assessment where drivers are compared individually.
Why Perform Scenario Analysis - Business Planning? - ANSWERSOperating scenarios for the company.
Planning resources (people, capital, etc.).
Corporate and business strategy.
Why Perform Scenario Analysis - Valuation - ANSWERSModeling different views/opinions.
Different future cases of the world.
Telling a story.
Why Perform Sensitivity Analysis - ANSWERSValuation Analysis
Model Testing
in Excel Exam Questions & Answers
Recommended Prerequisites - ANSWERSYou are expected to have either completed the stated
prerequisite courses or possess the equivalent knowledge prior to enrolling in this course:
Building a Financial Model in Excel
Business Valuation Modeling
Scenario Analysis - ANSWERSMultiple inputs changed at once.
A story (or "scenario") about the future.
Typically represents several business cases.
Scenarios will be compared and risks weighted.
Sensitivity Analysis - ANSWERSOne assumption changed at a time.
No story about why inputs go up or down.
Used to determine which assumptions matter most.
A form of risk assessment where drivers are compared individually.
Why Perform Scenario Analysis - Business Planning? - ANSWERSOperating scenarios for the company.
Planning resources (people, capital, etc.).
Corporate and business strategy.
Why Perform Scenario Analysis - Valuation - ANSWERSModeling different views/opinions.
Different future cases of the world.
Telling a story.
Why Perform Sensitivity Analysis - ANSWERSValuation Analysis
Model Testing
