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 Net Interest Income Of Bank Based On Decrease In Basis Points

Question The following information details the rate sensitivity report for Gotbucks Bank, Inc. ($million).       Maturity   &...

938 reads$5.50$2.50
Calculating Forward Rate Agreements

Question On the 15th of May 2013 you enter a Forward  Rate Agreement (FRA)  to borrow on the 15th of September 2013 $1’000’000 for 8 months at a fixed annual...

1524 reads$2.00$1.00
Calculation Of Leverage Adjusted Duration Gap Impact On Equity

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...

1379 reads$2.00$1.00
Calculate Net Interest Income Of Bank Based On Increase In Basis Points And Maturity Gap Repricing

Question The following is the balance sheet of Boston Bank. The average maturity of demand deposits is estimated at 2 years.   Face Value Runoff < 1 y...

2335 reads$7.00$4.00
Calculation Of 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...

1613 reads$6.00$3.00
Calculate Net Interest Income Of Bank From Assets And Liabilities

QuestionA bank has liabilities of $4 million with an average maturity of two years paying interest rates of 4 percent annually. It has assets of $5 million with an average maturity...

2204 reads$7.00$4.00
Calculating Future value, expected rate of return, opportunity cost and present value with examples

Question 1.    Assuming zero taxes, calculate the future value of a $1,000 lump-sum contribution to a savings plan, compounded annually, at the end of: (a) five yea...

1802 reads$14.50$8.50
Calculate Net Interest Income Of Bank From Assets And Liabilities

QuestionA bank has 10 million British pounds (£) in one-year assets and £8 million in one-year liabilities. In addition, it has one-year liabilities of 4 million Euros ...

2103 reads$6.00$3.00
Calculate Net Present Value For A Company And Check Whether Or Not It Should Upgrade

Question Propfix Ltd. is planning a major upgrade of their plant at a cost of $75,000. The original plant was commissioned three years ago at a cost of $100,000. The location of t...

1199 reads$21.00$10.00
Calculation Of Loan Annual Installment With Principal And Interest

QuestionMr. Jones bought a building for $100,000, payable on the following terms: a $10,000 down payment and 20 equal annual installment payments to include principal and interest ...

786 reads$6.00$3.00
Calculate Net Present Value For A Project

Question Cavalier Skilled Nursing Homes is considering setting up a new medical facility. Management estimates that it will cost $1.5 million to purchase the necessary equipment a...

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Calculating NPV and Income Tax with Change in Sales

Question MCL Ltd is a manufacturer and distributor of agricultural equipment. MCL produces milking machines and supplies as well as being the sole Australian distributor of machin...

1605 reads$6.50$4.50