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 Impact On Equity By Leverage Adjusted Duration Gap

QuestionAn FI has a leverage-adjusted duration gap of 1.21 years, $60 million in assets, 7 percent equity to assets ratio, and market rates are 8 percent. What is the impact on the...

2232 reads$2.00$1.00
Calculate Enterprise Value For A Company

Question The projected Free Cash Flow (FCF) of ABC Inc. Are provided below. It has a terminal value of $1,500 million, an exit multiple of 7.0x, and WACC of 10.0%. ($ in...

1064 reads$10.00$5.00
Calculate The Implied Probability Of Repayment For A B-Rated Debt

Question The following represents two yield curves. Maturity Pure Discount Treasury Yields B-rated Corporate Bond Yields (Pure Discount Bonds) 1 year...

2317 reads$9.00$5.00
Calculation Of Discount Rate For Security Payout

QuestionA securities provide a payout of $30,000 each year for 6 years. Suppose first amount comes in one year. What is the sale value of the security if the discount rate is 7%?Su...

1670 reads$1.00$0.50
Calculate The Market Values Of Loan And Certificate of Deposit When Interest Rates Increase

Question All assets and liabilities are currently priced at par and pay interest annually. Assets Amount ($ millions) Annual Rate Liabilities Amount...

2268 reads$5.00$3.00
Calculation Of Discounted Rate Of Interest For Bank Deposit

QuestionSuppose you deposit $5000 in the bank. How much can you raise after 10 years when discount rate is 5% for the first four years and then rises to 7% annually?SummaryThe ques...

1377 reads$1.00$0.50
Calculation Of Dividend Yield Of A Company

Question One year ago, Bob Sakamano invested $10,400 in 200 shares of Vandalay Industries stock and just received a dividend payment (total) of $600. What was Vandalay Industry&rs...

1145 reads$4.00$2.50
Calculation of Dividends and Earnings Per Share of McCormick Industries-Multiple Choice Question

Question McCormick Industries plans to pay a $4.00 dividend this year and you expect that the firm's earnings are on track to grow at 5% per year for the foreseeable future. McCor...

2288 reads$2.00$1.00
Calculation Of Down Payment For Housing Loan

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...

1581 reads$1.00$0.50
Calculate Expected Annual Amount From 40 Year Investment

Question You are considering an investment in a 40-year security. The security will pay $25 a year at the end of each of the first 3 years. The security will then pay $30 a year a...

1306 reads$10.00$5.00
Calculate Expected Return And Standard Deviation For A Portfolio

Question Mark Spitz proposes to invest in two shares, X and Y. He expects a return of 12 percent from X and 8 percent from Y. The standard deviation of return is 8 percent for X a...

2143 reads$15.00$8.00
Calculate Expected Return On Loans Portfolio For A Financial Institution

QuestionA. Borrower Rating                          Loan Amount&n...

2091 reads$4.00$2.00