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 Optimal Replacement Cycle For New Machine

Question Gillian is deciding whether to replace an old machine, and has assembled the following information:   Old Machine New Machine Life at pur...

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Calculation Of Optimal Risky Portfolio And Expected Return

Question The universe of available securities includes only two risky stock funds, X and Y, as well as T-bills. The data for the investment universe are shown in the table below. ...

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Compare The Work Of Two Credit Rating Agencies And Credit Referencing Bureaus

Question Compare the work of two rating agencies and of credit referencing bureaus in summarising information about the ability of a borrower to repay a loan. Is their work essent...

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Calculation of Options with Intrinsic Value and Call

Question Consider that on a recent day, Wal Mart Stock closed at $55.19 per share, down by $0.05 on the day. In the questions that follow, use the “Last Sale” column t...

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Comparing The Change in Loan Repayment Rate Because of Change in Spot Rate

QuestionAssume Avarice Corporation, a U.S. based MNC, obtains a one-year loan of 1,500,000 Malaysian Ringgit (MYR), at a nominal interest rate of 7%. At the time the loan is extend...

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Case Study Analysis: Harvard Business School No. 9201046

Question Case Study Analysis: Cost of Capital at Ameritrade Harvard Business School No: 9-201-046 Summary The case study belongs to Finance and it is about determining the cost...

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Comparing Two Articles On International New Ventures

QuestionZahra, S.A. (2005) ‘A theory of international new ventures: A decade of research’, Journal of International Business Studies, 36 (1), January, pp. 20–28. ...

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Case Study Analysis: Heather Evans

Question Case Study Analysis: Heather EvansPlease refer to the PDF document attached for the case study.Summary The case study is about Heather Evans who is going to be an MBA an...

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Comparing US and UK Effective Rate of Financing

QuestionAssume the U.S. one-year interest rate is 8%, and the British one-year interest rate is 6%. The one-year forward rate of the pound is $1.97. The spot rate of the pound at t...

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Calculation Of Payback Period

Question1. Which of the following is NOT a limitation of the payback rule?A. It does not consider the time value of moneyB. It lacks a decision criterion that is economically based...

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Calculation of Pension Expense And Underfunded Retirement Plan

Question1. Taylor Corp reported the following items in the 2012 pension footnote (in millions). Service cost $1,012 Benefits paid to retirees 290 ...

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Calculation of Percentage Change in Bonds Price when Interest Rate Changes

Question What are the duration and modified duration of a seven-year, 3.5 percent coupon rate, annual coupon payment, $1000 par value government note priced today to yield 3 perce...

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