Finance

Our Finance Solution Library Page contains so numerous questions, essay, problems and case studies that help in developing an in-depth knowledge on the subject.

Put it simply, finance deals with application of financial, economic and accounting principles which help in maximizing wealth and overall value of an organization. In fact, maximizing the wealth is regarded as one of the primary objectives of an organization. The value of a firm can be measured by the market price of shares of the company. Many a times, the higher the share value, the better the company’s performance, financially.

Capital Structure: In order that a company performs better financially, it must have a good capital structure. Capital structure is the way in which a corporation buys its assets by combining equity share capital and debt. While equity share capital belongs to shareholders, debt is provided by a third party. Our solution library has various questions, problems and case studies on capital structure, which make it easier for you to understand the concept thoroughly, both theoretically and practically.

Working Capital Management: Working capital management is a short term financial activity which is used for running the day to day activities of the firm. It is the difference between current assets and current liabilities. There are several problems and scenario analysis questions on working capital in our solution library dealing with working capital management.

Time value of money: Time value of money plays a crucial role in finance. Time value of money gives rise to various concepts such as present value (PV), future value (FV), net present value (NPV), internal rate of return (IRR), profitability index (PI), etc. Each of these concepts help in calculating the earning capacity or potential for money invested. In other words, one make a benchmark for earning capacity or rate of return for an investment by using the time value of money. Several problems, short answer questions, essays, cases and scenarios have been covered under time value of money in our Finance Solution Library page.

Financial Statement Analysis: Financial statements of a firm include income statement, balance sheet and cash flow statement. Each of these statements provide accounting and financial information which is used to arrive at the financial position of the firm with the help of certain tools and benchmarking techniques. Ratio analysis is one such practice used to know the financial position of a firm. Our solution library has several essays, problems, scenarios and cases on financial statement analysis which offer a comprehensive understanding of the topic.

Derivatives: Derivatives are financial instruments which are calculated by an underlying asset. These can be stock and commodities, government bonds, etc. The questions and problems covering derivatives in our solution library range from Options and Futures, Forwards, Swaps, Currency options and Futures, Hedging Strategies, etc.

Mergers and Acquisitions: Mergers and acquisitions play a major role not just in corporate strategy but also financially. Merger is merging two or more companies into one and acquisition is one company acquiring one or more companies and making them its own. Various questions and problems under merger and acquisitions can be found in our finance solution library.

Problems and case studies in finance: Our Finance Solution Library contains several problems and case studies which deal with topics mentioned above and more.

 

Scenario Analysis: Capital Restructuring of Nelson Corporation

Question Nelson Corporation has made the following forecast of sales, with the associated probabilities of occurrence noted.     Sales     ...

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Scenario Analysis: Financial Advisor Misleading His Clients and Remedies From Such Acts

QuestionBarry is an investment advisor. He services around 50 clients with around Sl-2 million to invest. Barry mainly advises his clients to buy shares. This is because most of hi...

1876 reads$14.50$8.00
Scenario Analysis: Mortgage Home Loan Eligibility Calculation

Question Kirsten Neal is interested in purchasing a new house given that mortgage rates are at a historical low. Her bank has specific rules regarding an applicant’s ability...

1387 reads$9.50$6.50
Scenario Analysis: Paper Money Investment: Pretend that you have $10,000 to invest for four weeks.

Question Play Money Paper Pretend that you have $10,000 to invest for four weeks. You are to "invest" this money in stocks or mutual funds and to track your investments on a wee...

2114 reads$22.00$15.00
Profit or Loss to a Short Forward Position MCQ

Question The current price of a stock is $42. The stock does not pay dividends.  A 3-month forward contract on this stock is priced at $44. What is closest to the profit or l...

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Report On Mining Companies Business Model, Strategic Direction And Corporate Governance Structure

QuestionPrepare a written report which analyses the business model, the strategic direction and corporate governance structure of the following listed mining companies operating in...

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Project Analysis and Operating Leverage for a New Product Launching Project

Question Project Analysis and Operating Leverage For a new product launching project, you find that the project will cost $600,000, have a five-year life with no salvage value, ...

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Proof Of Bond’s Duration Is Higher When Coupon Rate Is Lower

Question Prove Rule 2 for Duration: Holding maturity constant, a bond’s duration is higher when the coupon rate is lower. You may complete the proof using either mathematica...

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Proper Execution of Financial Planning and How to Calculate The Number of Days for Inventory

Question 1. Financial planning, when properly executed: a.    Ignores the normal constraints encountered by a firm. b.    Ensures that the primary g...

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Purchasing Options To Minimize Loss Of Stock Price

QuestionOn Oct. 5th, Reem purchased 2500 shares of Mediterranean Co. stocks at €35 per share and 1500 shares of KFD at €28 per share. According to financial analysts&rsqu...

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Selection of Best Projects on Post-investment Values

Question Estimates of selected post-investment values for three independent investment projects are as follows: Project 1          Sales:&...

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Selling of Securities in Financial Markets-Multiple Choice Question

Question When a corporation uses the financial markets to raise new funds, the sale of securities is made in the  A. primary market. B. secondary market. C. on...

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