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.

 

Calculate The Duration Of Treasury Note

Question Based on an 18-month, 8 percent (semiannual) coupon Treasury note selling at par.1. What is the duration of this Treasury note?    a.    1.5...

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Calculation Of Cost Of Principal Interest And Monthly Mortgage Payments

QuestionMichelle and Ken Dunn, both in their mid-20s, have been married for 4 years and have two preschool-age children.  Ken has an accounting degree and is employed as a cos...

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Calculate Current Selling Price Of A Bond

Question A 10-year Treasury bond with a $1,000 par value has a 12% coupon and pay interest every 6 months. The bond is three years old and has just made its sixth payment. If inte...

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Calculate The Duration Of Treasury Notes And Leverage Adjusted Duration Gap

Question The two-year Treasury notes are zero coupon assets. Interest payments on all other assets and liabilities occur at maturity. Assume 360 days in a year. Assets ...

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Calculate Current Share Price Of A Company

Question West Coast Oil Discovery (WCOD) just paid a dividend of $4 on its stock. The growth rate of the dividends is expected to be a constant 8 percent per year indefinitely. In...

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Calculate The Duration Of Treasury Notes And Leverage Adjusted Duration Gap

Question The numbers provided are in thousands of dollars.     Treasury bill $90   Time deposits $1,100 Treasury notes ...

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Calculate Current Stock Price

Question Your company paid a dividend of $2.00 last year. The growth rate is expected to be 50% for 1 year, 10% the next year, 5% for the following year, and then the growth rate ...

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Calculate Demand Function, Transfer Price and Number of Units To Be Produced

QuestionA firm has two semi-autonomous divisions: production and marketing.  The production division manufactures a product that is purchased and then resold by the marketing ...

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Calculation Of Currency Position And Delta Position For Japanese Yen and Swiss Francs

QuestionOn December 31, 2001 Historic Bank had long positions of 200,000,000 Japanese Yen and 50,000,000 Swiss Francs. The closing exchange rates were ¥92/$ and Swf1.89/$.1. Wh...

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Calculate Depreciation For A Washing Machine At College

Question Alpha Alpha Alpha, a college fraternity, purchased a new heavy-duty washing machine on January 1, 20X3. The machine, which cost $1,000, had an estimated residual value of...

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Calculate The Expected Return On Loan With A Recovery Chance Of 90%

Question1. LNW Bank is charging a 12 percent interest rate on a $5,000,000 loan.  The bank also charged $100,000 in fees to originate the loan. The bank has a cost of funds of...

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Calculation Of Current Value Of Bond

QuestionTwin Oaks Health Center has a bond issue outstanding with a coupon rate of 7% and four years remaining until maturity. The par value of the bond is $1000 and the bond pays ...

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