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.
Question a) What is the current yield on government bond, issued exactly five years ago, that has a current market price of $5866 and pays an annual coupon payme...
QuestionSumitomo Bank’s risk manager has estimated that the DEARs of two of its major assets in its trading portfolio, foreign exchange and bonds, are –$150,000 and &nd...
QuestionA firm’s assets have a market value of $500m; the asset returns have a standard deviation of 25% per year. The firm is financed with zero coupon debt having a face va...
Question Dudley Industries developed the following standard costs for direct materials and direct labor for gadgets: Standard quantity Standard price ...
QuestionA firm’s assets have a market value of $500m; the asset returns have a standard deviation of 25% per year. The firm is financed with zero coupon debt having a face va...
Question What is the future value at year 3 of the following set of cash flows if the appropriate discount rate is 11%? Year 0 1 2 3 Cash Flo...
Question1. An FI purchases a $9,982 million pool of commercial loans at par. The loans have an interest rate of 8 percent, a maturity of five years, and annual payments of principa...
Question Three years from now, Yuengling & Sons Inc plans to buy a $21 million brewery so that it can expand into Hawaii. US Treasuries are paying 4% interest and the stock ma...
QuestionWestbrook Inc. is financed with debt that costs it 5% (pre-tax) or $12.5m annually and expects to generate an EBIT of $50m per year perpetually. The company is at its targe...
Question Snappy Supply Inc. has purchased several expensive machines for the express purpose of manufacturing nano-chip products. Snappy Supply is a January 1 to December 31 calen...
Question The Giant Corporation is considering investing in a new metal-shelving manufacturing machine that has an estimated life of three years. The cost of the machine is $...
Question Betsy Ross Enterprises purchased a delivery van for $30,000 in January 20X7. The van was estimated to have a service life of 5 years and a resid­ual value of $6,000. ...
