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.

 

Calculation Of Various Ratios

Question A2Z Maritime is a ship-owning company that had some long term contracts that include land transport delivery, but these seem to be declining. However, there are several t...

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Calculation of Volatility of an Equally Weighted Portfolio-Multiple Choice Question

Question Consider an equally weighted portfolio that contains 100 stocks. If the average volatility of these stocks is 50% and the average correlation between the stocks is .7, th...

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Calculation of WACC based on Common Equity and Current Market Values

Question A company has a capital structure that consists of $7 million of debt, $2 million of preferred stock, and $11 million of common equity, based upon current market values. ...

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Cost of Capital and Affect of Taxes on Cost of Debt

Question 1. What does the cost of capital represents? What is should reflect? 2. How do taxes affect the cost of debt? Summary This question belongs to finance and discusses ab...

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Calculation Of WACC, NPV, Weight Average Flotation Cost

QuestionMustard Patch Doll Company needs to purchase new plastic moulding machines to meet the demand for its product. The cost of the equipment is $100,000. It is estimated that t...

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Cost of Capital and WACC Representation

Question 1. What does the cost of capital represents? What is should reflect? 2. What does the WACC represents? Summary This question belongs to finance and discusses about cos...

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Calculation of Warranty Expenses And Cost Of Repairing And Replacing Goods Under Warranty

QuestionDont Fall Down Incorporated manufactures skates and equipment for in-line skating. The company offers a one-year warranty on all products. During 2012, the company recorded...

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Cost of Equity from Retained Earnings

Question You have been provided with the following data: RF = 5.00%; (RM – RF) = 5.00%; and b = 1.15. What is the cost of equity from retained earnings based on the CAPM app...

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Calculation Of Weighted Average Cost Of Capital

QuestionAssume FCFLMNO = $100,000,000 for 2013.  The company’s annual growth rate in its FCFs is 5%.  The company employs the three major capital components (equity...

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Check True Or False Statements

Question 1. I. The favorable and unfavorable trends and significant events or uncertainties in the areas of liquidity, capital resources, and the results o operations can all be f...

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Cost of Financing for One Year Loan in Russian Rubles

QuestionMaston Corporation has forecasted the value of the Russian Ruble for the next tear as follows:OUTCOME PERCENTAGE CHANGE    PROBABILITY OF    ...

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Calculation Of Weighted Average Cost Of Capital

Question The Wishing Well hotel chain has a short-term bank loan with a book value of $40million and has issued bonds with a book value of $200 million. The book value of the firm...

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