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.

 

Calculation Of Interest Expense Tax Shield

Question Consider a firm with this book value capital structure: Interest‐Bearing Debt =               &nb...

1997 reads$2.00$1.00
Calculate Weighted Average Cost Of Capital And Discounted Cash Flow Analysis For A New Project

Question Scenario Analysis Omega Medical Group (OMG) manufactures high precision medical equipment. OMG has spent €20m on research and development (R&D) for a new system...

2252 reads$35.00$18.00
Calculation Of Interest Rate Compounded Semiannually, Quarterly And Monthly

QuestionDetermine the value at the end of four years of a $10,000 investment (today) in a bank certificate of deposit (CD) that pays a nominal annual interest rate of 12 percent, c...

2197 reads$8.00$4.00
Calculate Weighted Average Duration Of Assets And Liabilities Of A Bank

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

2059 reads$8.00$5.00
Calculation of Interest Rate Implicit In Net Present Value And Impact Of Capital Leases On Balance Sheet

QuestionOn its 2012 balance sheet, Bobcat Company reports minimum capital lease payments of $350,000 to be paid as follows: 2013     $100 thousand, 2014   ...

1968 reads$4.50$2.50
Calculation Of Interest Rate On Investment

Question1. A truck costing $112000 is paid off in monthly installments over four years with 8% APR. After three years the owner wishes to sell the truck. What is the closest amount...

2003 reads$1.50$0.75
Calculation of Interest Rate Swap in return for LIBOR

Question Under the terms of an interest rate swap, a financial institution has agreed to pay 10% per annum and to receive the 3-month LIBOR in return on a notional principal of $5...

1488 reads$4.50$2.50
Calculate Yield To Maturity And Forward Rate

Question Suppose the prices of zero-coupon bonds are as given in the table below, and each bond has a face value of $1,000. Bond Price Maturity (years) ...

1850 reads$2.00$1.00
Calculation of Interest Rates for given Returns

Question Calculate Interest Rates/Solve for the known interest rate in each of the following: Present Value        Years Interest   &...

1794 reads$5.00$2.00
Calculate Yield To Maturity For Bonds

Question1. Maturity (years) 1 2 3 4 5 Price $97.25 $94.53 $91.83 $89.23 $87.53 The above table shows t...

1694 reads$1.50$0.75
Calculate Z Score For Asset To Debt Ratio And Calculate Asset To Debt Ratio With Cut-off Rate Given

QuestionUsing a modified discriminant function similar to Altman’s, a bank estimates the following coefficients for its portfolio of loans:Z = 1.4X1 + 1.09X2 + 1.5X3Where X1 ...

2322 reads$4.00$2.00
Calculation Of Internal And External Rate Of Return For A Project

Question The estimated cash flow of Project XP-05/3 is given below: End of year 0 1 2 3 4 Cashflow, $ -X Y Y+$400,000 ...

1963 reads$13.00$6.00