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 Breakeven Point In Dollars And Units

QuestionHanks Western Wear is a western hat retailer in Lubbock, TX.  Although Hanks carries numerous styles of western hats, each hat has approximately the same price and inv...

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Calculate Average Return Interest Earned From A Bank Account

QuestionA NOW account requires a minimum balance of $500 if annual interest of 5 percent is to be earned monthly on its deposits. An account holder has maintained an average balanc...

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Calculation Of Call Price Consistent With Black Sholes Model

QuestionGiven the following information, calculate the three-month price of a call that is consistent with the Black-Sholes model:P= $47, E= $45, R= 0.05, δ= 0.40Summary The...

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Calculate Balance Of An Investment Plan

Question What will be the balance in 25 years of an investment plan that requires year-end contribution of $1000 for 25 years if it earns 7.5% compounded annually for the first 10...

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Calculate Sales With Return On Investment And Asset Turnover Ratio

Question1. Red Pty Ltd is concluding a review of its current strategies. Which of the following statements would be a valid explanation of why current strategies may not meet objec...

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Calculate Savings And Asset Adjustment Made by Company Issuing Commercial Paper

Question A corporation is planning to issue $10 million worth of 180-day commercial paper. In order to reduce the interest rates by 25 basis points (per annum), it plans to back t...

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Calculate Bond Duration, Bond Price And Change In Price With Change In Interest Rate

Question A bond is scheduled to mature in five years. Its coupon rate is 9 percent with interest paid annually. This $1,000 par value bond carries a yield to maturity of 10 percen...

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Calculation of Capital Cost Allowance with net profit, tax rate and weighted average cost of capital

Question PAC Corp. is going to purchase a new line of technology. It will cost $4M and will be salvaged for $0.5M in six years. Due to the advanced nature of the technology, it ca...

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Calculate Book Value Of Capital Equipment And The Amount For Acquisition

Question D&R Investments Ltd. wants to acquire Robotic System Inc. - a small enterprise developing software for controlling the operation of automated production units used by...

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Calculation Of Capital Gain By Selling Shares

Question One year ago, Bob Sakamano invested $10,400 in 200 shares of Vandalay Industries stock and just received a dividend payment (total) of $600. Today he sold the 200 shares ...

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Calculation Of Car Annual Depreciation

QuestionA used car costs $120,000. The car can be sold for $10,000 after six years. What is the annual cost (depreciation and interest costs) if the discount rate is 9%?SummaryThe ...

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Calculation Of Cash Conversion Cycle And Its Components

Question Using the following selected financials from Barnes & Noble’s 10-K, calculate the cash conversation cycle for fiscal years 2004 and 2005. Show all work used to ...

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