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 Nominal Return at given Inflation Rate

Question Harun bought an investment three years ago and just recently calculated his return on investment. He found that his purchasing power has decreased by 8% as a result of hi...

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Calculation Of NPV And Debt For A Project

Question A firm is considering a project to produce solar water heaters. The project requires a $10 million investment and offers a constant after-tax cash flow of $1.75 million p...

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Calculation Of NPV For A Project With Inflow, Outflow And Foreign Exchange Rate Given

Question Baps Corporation is considering the establishment of a subsidiary in Norway. The initial investment required by the parent is NOK40 million. If the project is undertaken,...

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Calculation Of NPV IRR And Payback Period For A Firm

Question Neo Pharmaceuticals is a start-up pharmaceutical company focused on the development and commercialization of non-steroidal anti-inflammatory drugs world-wide. The company...

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Calculation Of NPV, IRR And Discount Rate For A New Project

QuestionYou are considering making an investment in a project.  The initial cost (I0) equals $1,200.  In return for this initial outlay, you will own the rights to three ...

893 reads$6.50$3.50
Calculation Of NPV, IRR, Payback, Discounted Payback And Profitability Index

Question The Widget Project By Gary Moore, PH.D., J.D. After extensive research and development, Your company has recently developed a new Widget and must decide whether to make...

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Calculation of Number of Outstanding Days For Accounts Payable

Question 1. Selected recent balance sheet and income statement information for The Gap, Inc. follows: (in millions)          &nbs...

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Calculation Of Operating Cash Flow

Question Using the following selected financials, calculate the free cash flow (FCF) for each company.     2009 2008 2007 FCF Nike ...

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Calculation Of Operating Income Before Tax And Free Cash Flow

Question Consider a firm with the following characteristics: (1) beginning‐of‐year net operating capital = $820, end‐of‐year net operating capital = $890, before‐tax ope...

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Compare Financial Statements Of Two Companies

Question Compare the company Nestle and the company Kraft. Write an introduction presenting the companies and their financial statements. Compare the companies with the ratios cal...

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Case Study Analysis: Brookstone Ob-Gyn Associates

Question Case Study Analysis: Brookstone Ob-Gyn Associates Read the case study and answer the questions. Question #1 a). Prepare a Projected Operating Statement on the accrual ...

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Compare Share Performance Of A Company

Question The market leader on the Australian share market, by market capitalization, is the company BHP Billiton Limited. (a) Construct a table showing the daily closing price fo...

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