Foundations of
Finance 10th Edition
ST
UV
TEST BANK
IA
_A
Arthur J. Keown
PP
John D. Martin
J. William Petty
RO
────────────────────────────────────────────────────
Comprehensive Test Bank for Instructors
VE
and Students
© Arthur J. Keown, John D. Martin & J. William Petty. All rights reserved. Reproduction or
D?
distribution without permission is prohibited.
?
© Successhands
, Test Bank for Foundations of Finance (10th Edition)
Arthur J. Keown, John D. Martin & J. William Petty
ISBN: 978-0134897264
ST
PART I: THE SCOPE AND ENVIRONMENT OF FINANCIAL
MANAGEMENT
1. An Introduction to the Foundations of Financial Management
2. The Financial Markets and Interest Rates
UV
3. Understanding Financial Statements and Cash Flows
4. Evaluating a Firm’s Financial Performance
PART II: THE VALUATION OF FINANCIAL ASSETS
5. The Time Value of Money
IA
6. The Meaning and Measurement of Risk and Return
7. The Valuation and Characteristics of Bonds
8. The Valuation and Characteristics of Stock
_A
9. The Cost of Capital
PART III: INVESTMENT IN LONG-TERM ASSETS
10. Capital-Budgeting Techniques and Practice
11. Cash Flows and Other Topics in Capital Budgeting
PP
PART IV: CAPITAL STRUCTURE AND DIVIDEND POLICY
12. Determining the Financing Mix
13. Dividend Policy and Internal Financing
RO
PART V: WORKING-CAPITAL MANAGEMENT AND
INTERNATIONAL BUSINESS FINANCE
14. Short-Term Financial Planning
15. Working-Capital Management
VE
16. International Business Finance
17. Cash, Receivables, and Inventory Management
D?
?
© Successhands
, Foundations of Finance, 10e (Keown/Martin/Petty)
Chapter 1 An Introduction to the Foundations of Financial Management
SMT
Learning Objective 1.1
1) Financial management deals with the maintenance and creation of economic value or wealth.
UEDV
Answer: TRUE
Diff: 1 Page Ref: 3
Keywords: Financial Management
ICAO
Learning Obj.: L.O. 1.1
AACSB: Reflective Thinking
_NA
2) Each financial decision made by a corporate manager can be evaluated by its direct impact on the
corporation's stock price.
Answer: FALSE
Diff: 1 Page Ref: 4
PNPO
Keywords: Goal of the Firm
Learning Obj.: L.O. 1.1
AACSB: Reflective Thinking
RISO
3) The fundamental goal of a business is to maximize the retained earnings available to the corporation's
shareholders.
SVE
Answer: FALSE
Diff: 1 Page Ref: 3
EDU
Keywords: Goal of the Firm
Learning Obj.: L.O. 1.1
AACSB: Reflective Thinking
?R?
4) Shareholder wealth maximization means maximizing the price of the existing common stock.
Answer: TRUE
Diff: 1 Page Ref: 3
Med C
, Keywords: Shareholder Wealth, Goal of the Firm
Learning Obj.: L.O. 1.1
AACSB: Reflective Thinking
SMT
5) It is important to evaluate a corporate manager's financial decision by measuring the effect the decision
should have on the corporation's stock price if everything else were held constant.
UEDV
Answer: TRUE
Diff: 2 Page Ref: 4
Keywords: Goal of the Firm, Maximize Shareholder Wealth
Learning Obj.: L.O. 1.1
ICAO
AACSB: Reflective Thinking
_NA
PNPO
RISO
SVE
EDU
?R?
Med C
Finance 10th Edition
ST
UV
TEST BANK
IA
_A
Arthur J. Keown
PP
John D. Martin
J. William Petty
RO
────────────────────────────────────────────────────
Comprehensive Test Bank for Instructors
VE
and Students
© Arthur J. Keown, John D. Martin & J. William Petty. All rights reserved. Reproduction or
D?
distribution without permission is prohibited.
?
© Successhands
, Test Bank for Foundations of Finance (10th Edition)
Arthur J. Keown, John D. Martin & J. William Petty
ISBN: 978-0134897264
ST
PART I: THE SCOPE AND ENVIRONMENT OF FINANCIAL
MANAGEMENT
1. An Introduction to the Foundations of Financial Management
2. The Financial Markets and Interest Rates
UV
3. Understanding Financial Statements and Cash Flows
4. Evaluating a Firm’s Financial Performance
PART II: THE VALUATION OF FINANCIAL ASSETS
5. The Time Value of Money
IA
6. The Meaning and Measurement of Risk and Return
7. The Valuation and Characteristics of Bonds
8. The Valuation and Characteristics of Stock
_A
9. The Cost of Capital
PART III: INVESTMENT IN LONG-TERM ASSETS
10. Capital-Budgeting Techniques and Practice
11. Cash Flows and Other Topics in Capital Budgeting
PP
PART IV: CAPITAL STRUCTURE AND DIVIDEND POLICY
12. Determining the Financing Mix
13. Dividend Policy and Internal Financing
RO
PART V: WORKING-CAPITAL MANAGEMENT AND
INTERNATIONAL BUSINESS FINANCE
14. Short-Term Financial Planning
15. Working-Capital Management
VE
16. International Business Finance
17. Cash, Receivables, and Inventory Management
D?
?
© Successhands
, Foundations of Finance, 10e (Keown/Martin/Petty)
Chapter 1 An Introduction to the Foundations of Financial Management
SMT
Learning Objective 1.1
1) Financial management deals with the maintenance and creation of economic value or wealth.
UEDV
Answer: TRUE
Diff: 1 Page Ref: 3
Keywords: Financial Management
ICAO
Learning Obj.: L.O. 1.1
AACSB: Reflective Thinking
_NA
2) Each financial decision made by a corporate manager can be evaluated by its direct impact on the
corporation's stock price.
Answer: FALSE
Diff: 1 Page Ref: 4
PNPO
Keywords: Goal of the Firm
Learning Obj.: L.O. 1.1
AACSB: Reflective Thinking
RISO
3) The fundamental goal of a business is to maximize the retained earnings available to the corporation's
shareholders.
SVE
Answer: FALSE
Diff: 1 Page Ref: 3
EDU
Keywords: Goal of the Firm
Learning Obj.: L.O. 1.1
AACSB: Reflective Thinking
?R?
4) Shareholder wealth maximization means maximizing the price of the existing common stock.
Answer: TRUE
Diff: 1 Page Ref: 3
Med C
, Keywords: Shareholder Wealth, Goal of the Firm
Learning Obj.: L.O. 1.1
AACSB: Reflective Thinking
SMT
5) It is important to evaluate a corporate manager's financial decision by measuring the effect the decision
should have on the corporation's stock price if everything else were held constant.
UEDV
Answer: TRUE
Diff: 2 Page Ref: 4
Keywords: Goal of the Firm, Maximize Shareholder Wealth
Learning Obj.: L.O. 1.1
ICAO
AACSB: Reflective Thinking
_NA
PNPO
RISO
SVE
EDU
?R?
Med C
