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.

 

Finance Objective Questions - Finding out Net Working Capital and Common-size Income Statements and Balance Sheets

Question 1. A firm has current assets of $36,000, cash of $5,000, current liabilities of $20,000, total assets of $80,000 and total liabilities of $45,000, what is its net working...

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Finance Objective Questions - High Turnover Ratio and Debt Equity Ratio

Question 1. High inventory turnover may signal poor efficiency or overstocking. True or False 2. The debt to equity ratio is generally less than or equal to the debt to asset ra...

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Finance Objective Questions - Is Scenario Analysis Testing Forecasts and What is the Commonly used Pro Forma Statements

Question 1. Scenario analysis is a way of testing forecasts by changing one assumption at a time.  True or False 2. Which of the following is commonly used in preparing pro...

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Finance Objective Questions - Optimal Growth Rate with Access to External Capital

Question 1. Which of the following is not a use of funds in a statement of sources and uses? Increase in long-term debt Increase in the cash account Reduction in accounts pay...

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Finance Objective Questions - What are Pro Forma Statements and the Difference between Real and Financial Activities

Question 1. Pro forma statements are: 1. Summaries of historical financial statements   2. Government-mandated analyses of financial statements  3. Projected sta...

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Finance Question NPV, Payback Period, Profitability Index, IRR Calculations

Question MCL Ltd is a manufacturer and distributor of agricultural equipment. MCL produces milking machines and supplies as well as being the sole Australian distributor of machin...

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Finance Question Scenario Analysis

Question Scenario Analysis Consider a project to supply Detroit with 55,000 tons of machines screws annually for automobile production. You will need an initial $1,700,000 invest...

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Graph of Standard Deviation with Correlation Coefficient

Question Consider two stocks: ABC and XYZ with the following information   ABC XYZ Mean Return 8% 20% Standard Deviation 1...

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Finance Research Project ConocoPhillips

Finance Questions Write a one paragraph summary about ConocoPhillips. Calculate the beta of the company. Report the average and standard deviation of monthly re...

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Graph PAYOFF function of Stock and to find Common Derivative

Question XYZ stock is currently trading at $100.  The one-year effective interest rate is 5% ($1 lent today yields $1.05 one year from now).  A one year put with strike ...

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Finance Valuation of Intellectual Property Essay

Question The late 1990s saw the rise of corporate valuations arising from ownership of various forms of intellectual property, rather than the traditional value arising from produ...

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Financial Analysis Of A Project

QuestionIn your role as strategic management accountant, you have completed a financial analysis of a project. The project is:Accounting Rate of Return (ARR) is 10 percent.Payback ...

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