Practice Problems
15 comprehensive practice problems with detailed step-by-step solutions to master finance concepts.
TVM Single Sum
Time Value of Money
Find present value from a future amount using basic discounting.
NPV Two-Year Project
Capital Budgeting
Evaluate a short project with NPV and make an accept/reject decision.
Bond Pricing - Annual Coupon
Bond Valuation
Price a corporate bond with annual coupon payments.
WACC with Three Sources
Cost of Capital
Calculate WACC when a firm uses debt, common equity, and preferred stock.
CAPM Expected Return
Risk and Return
Use the Capital Asset Pricing Model to find the expected return on a stock.
Stock Valuation - DDM
Stock Valuation
Value a dividend-paying stock using the Gordon Growth Model.
IRR - Three Year Project
Capital Budgeting
Find the IRR for a three-year project and compare to the hurdle rate.
Annuity - Mortgage Payment
Time Value of Money
Calculate the monthly mortgage payment using the annuity formula.
PV of Uneven Cash Flows
Time Value of Money
Find the present value of a series of unequal cash flows.
Current Ratio Analysis
Financial Statements
Calculate and interpret the current ratio for a company.
Debt-to-Equity Interpretation
Financial Statements
Calculate D/E ratio and assess a firm's leverage.
Payback Period Comparison
Capital Budgeting
Compare two projects using the payback period method.
Profitability Index Ranking
Capital Budgeting
Rank three projects by profitability index under capital rationing.
Cash Conversion Cycle
Working Capital
Calculate the cash conversion cycle from operating data.
Optimal Capital Structure
Capital Structure
Find the debt ratio that minimizes WACC from a given schedule.
Solve Any Problem with AI
Take a photo of your homework and get instant step-by-step solutions.
Download FinanceIQ