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 The expected returns, return variances, and the correlation between the returns of four securities are shown below. Security Expected Return Variance...
Question Use the following information.You have the following information on the two securities in which you have invested Expected Return Probability ...
QuestionMedical Corporation of America (MCA) has a current stock price of $36 and its last dividend (D0) was $2.40. In view of MCA’s strong financial position, its required r...
QuestionA broker offers to sell you shares of Bay Area Healthcare, which just paid a dividend of $2 per share. The dividend is expected to grow at a constant rate of 5% percent per...
Question You are considering the purchase of a corporate bond. The bond has six years to maturity, a face value of $1000, and pays coupons semi-annually at a rate of 6.8%. The cur...
QuestionStudents are willing to pay $700 for a computer and $100 for additional software. Workers are willing to pay $500 for a computer and $200 on the additional software. ...
QuestionDetermine the payment in a swap of floating-for fixed-rate interest payment. The notional is $20 million. The fixed-rate payer pays 11%. The floating-rate payer pays LIBOR,...
QuestionThe following is an FI’s balance sheet ($millions). Assets Amount Duration Liabilities Amount Duration Cash $ 1 0...
QuestionThe current spot price of 1 barrel of crude oil is $120, the 1.75-year spot rate is 5% (c.c.), the (continuous flow of) storage costs of crude oil is 1% per year. (a) In ab...
Question Alberta Energy Crop. Intends to start generating electricity using its recently installed wind turbines located of Edmonton. The electricity generated by the turbines is ...
Question Consider a stock that pays no dividend trading at $100. Suppose one-year call options with strike prices of $95, $100, $105, and $110 can be bought for a premiums o...
Question For the following questions assume the risk free rate of return is 2.50%. Your company imports large quantities of oil. On January 1st 2011 the spot price of oil is $70. ...
