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.

 

how to calculate net cash flow provided financing activities

Question Mccloe Corporation's balance sheet and income statement appear below:  Mccloe Corporation Comparative Balance Sheet   Ending Balance Beg...

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Formulation of Net Working Capital-Multiple Choice Question

Question Indicate as to whether the following statements are correct (yes) or incorrect (no): Net working capital = current assets - current liabilities a) True b) False  ...

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how to calculate net present value on an investment

Question   Shields Company has gathered the following data on a proposed investment project: (Ignore income taxes.)   Investment required in equipment $4...

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Formulation of Present Value of Cash Flows-Multiple Choice Question

Question Indicate as to whether the following statements are correct (yes) or incorrect (no): PV = sum of the discounted cash flows a) True b) False      

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Importance Of Bank Relationship Management

QuestionDiscuss about the growing importance of bank relationship management. Imagine you work in the corporate finance or treasury department of a medium-sized firm that often str...

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Formulation of Rate of Return-Multiple Choice Question

Question Indicate as to whether the following statements are correct (yes) or incorrect (no): RoR = -1 + (VT/K0)(1/T) a) True b) False    

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Formulation of Weighted Average Cost of Capital-Multiple Choice Question

Question Indicate as to whether the following statements are correct (yes) or incorrect (no): WACC = r = wd* rd(1-t) + wp*rp + wd* rc a) True b) False      

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how to calculate payback period of an investment

Question Gull Inc. is considering the acquisition of equipment that costs $440,000 and has a useful life of 6 years with no salvage value. The incremental net cash flows that woul...

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Importance of Capital Structure And The Cost of Capital In The Efficient Financial Management of Large Companies

Question Critically evaluate the importance of capital structure and the cost of capital in the efficient financial management of large companies. Summary The question in financ...

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Formulation of Working Capital-Multiple Choice Question

Question Indicate as to whether the following statements are correct (yes) or incorrect (no): Working capital:   Current assets and current liabilities a) True b) Fals...

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how to calculate present value of future cash inflows from an asset

Question Charley has a typing service. He estimates that a new computer will result in increased cash inflow $2,300 in Year 1, $2,700 in Year 2 and $3,500 in Year 3. (Ignore incom...

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Explain the Purpose of Financial Statement Analysis

QuestionExplain the purpose of financial statement analysis.SummaryThe question belongs to Finance and it discusses about the purpose or need for preparing financial statement anal...

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