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 Change In Shareholders Wealth

Question Assume these facts about a levered firm: market value of interest‐bearing debt = $370 and market value of common stock = $1,040. If the corporate income tax is 30% and ...

903 reads$2.00$1.00
Calculate Cash Flow From Operating Activities

Question Consider the following information: Net Income 64 Purchases of equipment 33 Accounts receivable increase 8 Dividends paid ...

1031 reads$2.00$1.00
Calculation Of Change In Spot Rate Of US Dollar And UK Pound

Question Suppose the current spot FX rate is S0(£/$) = £0.60/$. The consensus forecast for US inflation over the next year is 5%, while the forecast for UK inflation i...

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Calculate Change In Bond Price With Change In Market Interest Rates

QuestionConsider a six-year maturity, $100,000 face value bond that pays a 5 percent fixed coupon annually.1. What is the price of the bond if market interest rates are 4 percent?&...

2234 reads$6.00$3.00
Calculation of Coefficient Of Variation With Returns On Financial Asset

QuestionConsidering Stand Alone Risk and the calculation of the Coefficient of Variation (CV), you are to develop a series of at least five historical returns for a financial asset...

817 reads$6.50$3.50
Calculate Stock Price Per Share With Market And Book Value Being Equal

QuestionA firm has a market value equal to its book value. Currently, the firm has excess cash of $500 and other assets of $9,500. Equity is worth $10,000. The firm has 250 shares ...

1367 reads$5.00$3.00
Calculation of COGS, Gross Profit and Ending Inventory

Question Boston Galleries uses the specific identification method for inventory valuation. Inventory information for several oil paintings follows.    &nbs...

1945 reads$1.00$0.50
Calculate Stock Price With Debt To Value Ratio, Net Income, Dividend Payout Ratio Being Given

QuestionGeKay Inc. currently (January 1) has a net income of $10,000,000 which is expected to grow indefinitely (perpetuity) at 10% per annum. The firm is financed at a debt-to -va...

2314 reads$6.00$3.00
Calculate Stock Value With Modigliani & Miller Model

QuestionYou own 25% of Unique Vacations, Inc. You have decided to retire and want to sell your shares in this closely held, all equity firm. The other shareholders have agreed to h...

1930 reads$5.50$3.50
Calculate Change In The Assets And Liabilities And Change In Interest Rates Of Bank

Question The following information is about current spot rates for an FI’s assets (loans) and liabilities (CDs). All interest rates are fixed and paid annually. Ass...

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Calculation Of Company Stock’s CAPM

Question A particular stock has an expected return of 11%. If the expected risk premium on the market portfolio is 8%, and the risk-free rate is 5%, what is the stock’s CAPM...

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Calculate Choosing Between Two Machines

Question Garden Farrell Company is considering purchasing one of the following two pieces of gardening equipment. Equipment A has a purchase price of $3 million and will cost $80...

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