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 Rate Of Return Of Stock

QuestionThe stock of Apple, Inc, has an estimated beta of 1.5. The current risk free rate is 5% and the market return is 7.4%.  What is the required rate of return on the stoc...

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Calculation Of Expected Dividend And Annual Rate Of Return

Question You are considering the purchase of some shares of PECO Inc. common stock which paid a dividend of $1.50 today. You expect the dividend to grow at the rate of 7% per year...

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Calculation Of Expected Dividend Yield And Expected Capital Gains Yield

QuestionLucas Clinic’s last dividend (D0) was $1.50. Its equilibrium stock price is $15.75 and its expected growth rate is a constant 5%. If the stockholders’ required ...

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Calculation of Expected Portfolio Return and Standard Deviation of Portfolio Return

Question Suppose two securities A and B have a covariance COVAB = 20 and are combined to form a portfolio.  The expected returns and standard deviations of the two securities...

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Calculate The Royalty with Number of Books Sold

QuestionEileen O'Donnell is trying to choose between two publishing companies that are competing for the marketing rights to her new novel. Company A has offered $10,000 plus $2 pe...

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Calculation Of Expected Rate Of Return

Question Stocks J, K, and L all have the same expected rate of return and standard deviation. The correlation coefficients between each pair of these stocks are as follows: ...

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Calculate The Share Price Of A Company That Pays Dividend Lower Than The Expected Rate

Question Calculate the share price of a company the pays a fixed dividend of £2.30 pa when the required rate of return demanded by equity investors is 3%. What will the pric...

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Calculation of Expected Real Risk Premium Of Portfolio

Question Consider the following information on three stocks. Rate of Return if State Occurs State of economy Probability of state of economy Stock A...

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Calculation Of Expected Return

QuestionGiven the following information, Compute is the expected return on General Motors. Probability    Expected    Amount      ...

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Calculation Of Expected Return And Market Premium For A Listed Company

Question The rate of return for an Australian Commonwealth Government Treasury Bond is given as 4% per annum. The yearly return for the Australian share market is given as 12%. Su...

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Calculation Of Expected Return And Risk On An Investment

Question Consider a share investment which has four possible returns: -5%, -2%, 5%, 10%. The probability of each of these returns occurring is respectively: 0.4, 0.1, 0.2, 0.3. (...

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Calculation Of Expected Return And Systematic Risk Of Portfolio

Question Use the following information to answer the questions below.   Security   Return   Standard Deviation   Beta   ...

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