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 Lease Or Purchase Decision By Company

Question Suppose Clorox (a multinational manufacturer and marketer of consumer and professional products) can lease a new computer data processing system for $975,000 per year for...

1990 reads$36.00$18.00
Calculation Of Goodwill During Company Takeover

QuestionHardware, Inc. purchased 100% of the common shares of Software, Inc. for $470,000 on 1/1/07.  Software, Inc.'s balance sheet just before the purchase appears belo...

1423 reads$5.00$3.50
Calculate Total Overhead To Be Assigned And Total Overhead Cost

Question The accountant for Scenic Photographic Supply Company has established the following overhead cost pools and activity drivers. Overhead Cost Pool Budgeted Ov...

1794 reads$4.00$2.00
Calculation of Goodwill Impairment And Its Impact On Financial Statements

QuestionOn January 1, 2012, Gray purchases 100% of Morgan Biometrics Inc. for $11.4 million. At the time of acquisition, the fair market value of Morgan Biometrics’ tangible ...

1502 reads$4.50$2.50
Calculate Leverage Adjusted Duration Gap And Duration Of Loan

Question Assets Par Amount Rate Liabilities Par Amount Rate 2-year commercial loans, annual fixed rate, at par $400 million 1...

2275 reads$4.00$2.00
Calculate Leverage Adjusted Duration Gap And Interest Rate Risk Exposure For Bank

Question   Assets Amount Rate Duration Cash $75 million     Loans $750 million 12 percent 1....

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Calculation of Growth Rate Based on Dividend Payout

Question ABC Co. has the following dividend payment history: Year Dividend 2003 $1.00 2004 1.15 2005 1.25 2006 ...

1886 reads$2.00$1.00
Calculate Leverage Adjusted Duration Gap And Reducing Interest Rate Exposure Of Bank

QuestionThe numbers provided are in millions of dollars and reflect market values: Cash   20 Deposits historical avg. maturity = 4 years; historic...

1585 reads$6.00$3.00
Calculate Total Return And Standard Deviation

Question DATE PRICE DIVIDEND Jan 2000 100.00 0.00 Jan 2001 121.55 2.25 Jan 2002 139.81 2.55 Jan...

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Calculate Leverage Adjusted Gap Between Assets and Liabilities And Loan Amortization

Question1. An FI has financial assets of $800 and equity of $50. If the duration of assets is 1.21 years and the duration of all liabilities is 0.25 years, what is the leverage-adj...

1370 reads$6.00$3.00
Calculate Treasury Note Price With Asked Price Method

QuestionU.S. Treasury quotes from the WSJ on Oct. 15, 1993: Rate Maturity Ask Change Ask yield 7.1250 Oct 15, 1995 102.08 -1 ...

1645 reads$7.00$4.00
Calculate Unit Price of Product and NPV for a New Project

Question HGK, a Thai firm, is considering starting production of high-def TVs in its U.S subsidiary for sale in the U.S. The project has a 4-year life and requires an initial inve...

1949 reads$3.50$1.50