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 Percentage Change in Yield to Maturity Date of Bonds of a Company-Multiple Choice Question

Question Consider the following four bonds that pay annual coupons: Bond Years to maturity Coupon YTM A 1 0% 5% B 5 ...

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Comparison of Depreciation between Two Machines

Question You have been asked to choose between two pollution devices. The “Wet Scrub” costs $1,000 to set up and $500 per year to operate. It must be completely replac...

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Comparison of HDI of a Country for the Year 2016

Question Pick a country from each of the categories of very high HDI, high HDI, medium HDI and low HDI and present the values of HDI for the year 2016. Your answer should includ...

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Comparison of Short Plain Vanilla Forward Contract with Short Target Forward Contract

Question Assume that the one-month rate of interest is zero. What does the decomposition of the target forward in Part 2 tell you about the value of the call option embedded in th...

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Comparison of Short Plain Vanilla Forward with Short Target Forward Contract

Question This question concerns a simplified version of the target forwards contract introduced in class during the Aracruz Cellulose discussion. You are comparing two alternativ...

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Calculation Of Percentage Increase In Sales

QuestionYou are the financial manager of Wal-Mart who will submit a report on this year’s (2013) financial transactions to the company’s CFO Charles Holley. You want to...

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Case Study Biovail Corporation Revenue Recognition and FOB Sales Accounting

Question Case Study: Biovail Corporation: Revenue Recognition and FOB Sales Accounting, Harvard Business Publishing, 4011.   Summary The question belongs to Finance and it...

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Calculation Of Pre-tax Operating Profits

Question Shannon Kampa is in talks with Resul Ozbayrak Leaseco, a leasing company, to rent store space for new stores that Shannon is considering adding to her high-end natural fo...

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Calculation Of Present Value And Future Value Of Money

Question Find the following values assuming a regular, or ordinary, annuity: a. The present value of $900 per year for ten years at 9 percent b. The future value of $900 per yea...

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Calculation Of Present Value And Internal Rate Of Return

Question1. What is the present value (PV) of an investment that will pay $4000 in one year’s time and $400 every year after that, when the interest rate is 5% per year?A. $24...

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Case Study Conflict Between Doing Well And Doing Good

Question Case Study: Conflict Between Doing Well And Doing Good? Capital Budgeting Case Study – Coors by Julia S. Kwok, Elizabeth C. Rabe   Summary The question belo...

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Calculate COGS Ending Inventory Gross Profit With FIFO LIFO And WAM

Question Wave Riders Surfboard Company began business on January 1 of the current year. Purchases of surfboards were as follows: 1/3: 100 boards   @ $125 ...

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