TEST BANKg
Foundations of Finance
g g
13th Edition
g
MedgC
TEST BANK!!!
g
,FoundationsgofgFinance,g13thg(Keown/Martin/Petty)
Chapterg1g AngIntroductiongtogthegFoundationsgofgFinancialgManagement
LearninggObjectiveg1.1
1) Financialgmanagementgdealsgwithgthegmaintenancegandgcreationgofgeconomicgvaluegorgwealt
h.gAnswer:g TRUE
Diff:g1 PagegRef:g3
Keywords:gFinancialgManagementgLearni
nggObj.:gL.O.g1.1
AACSB:g ReflectivegThinking
2) Eachgfinancialgdecisiongmadegbygagcorporategmanagergcangbegevaluatedgbygitsgdirectgimpactgongt
hegcorporation'sgstockgprice.
Answer:gFALSEgDi
ff:g1
PagegRef:g
4
Keywords:gGoalgofgthegFirmg
LearninggObj.:gL.O.g1.1gAA
CSB:gReflectivegThinking
3) Thegfundamentalggoalgofgagbusinessgisgtogmaximizegthegretainedgearningsgavailablegtogthegcorporatio
n'sgshareholders.
Answer:gFALSEgDi
ff:g1
PagegRef:g
3
Keywords:gGoalgofgthegFirmg
LearninggObj.:gL.O.g1.1gAA
CSB:gReflectivegThinking
MedgC
,4) Shareholdergwealthgmaximizationgmeansgmaximizinggthegpricegofgthegexistinggcommongstoc
k.gAnswer:g TRUE
Diff:g1 PagegRef:g3
MedgC
, Keywords:gShareholdergWealth,gGoalgofgthegFirmgLe
arninggObj.:gL.O.g1.1
AACSB:g ReflectivegThinking
5) Itgisgimportantgtogevaluategagcorporategmanager'sgfinancialgdecisiongbygmeasuringgthegeffectgthegdecision
shouldghavegongthegcorporation'sgstockgpricegifgeverythinggelsegweregheldgconstant.gA
nswer:g TRUE
Diff:g2 PagegRef:g4
Keywords:gGoalgofgthegFirm,gMaximizegShareholdergWealthgLearn
inggObj.:gL.O.g1.1
AACSB:g ReflectivegThinking
MedgC
Foundations of Finance
g g
13th Edition
g
MedgC
TEST BANK!!!
g
,FoundationsgofgFinance,g13thg(Keown/Martin/Petty)
Chapterg1g AngIntroductiongtogthegFoundationsgofgFinancialgManagement
LearninggObjectiveg1.1
1) Financialgmanagementgdealsgwithgthegmaintenancegandgcreationgofgeconomicgvaluegorgwealt
h.gAnswer:g TRUE
Diff:g1 PagegRef:g3
Keywords:gFinancialgManagementgLearni
nggObj.:gL.O.g1.1
AACSB:g ReflectivegThinking
2) Eachgfinancialgdecisiongmadegbygagcorporategmanagergcangbegevaluatedgbygitsgdirectgimpactgongt
hegcorporation'sgstockgprice.
Answer:gFALSEgDi
ff:g1
PagegRef:g
4
Keywords:gGoalgofgthegFirmg
LearninggObj.:gL.O.g1.1gAA
CSB:gReflectivegThinking
3) Thegfundamentalggoalgofgagbusinessgisgtogmaximizegthegretainedgearningsgavailablegtogthegcorporatio
n'sgshareholders.
Answer:gFALSEgDi
ff:g1
PagegRef:g
3
Keywords:gGoalgofgthegFirmg
LearninggObj.:gL.O.g1.1gAA
CSB:gReflectivegThinking
MedgC
,4) Shareholdergwealthgmaximizationgmeansgmaximizinggthegpricegofgthegexistinggcommongstoc
k.gAnswer:g TRUE
Diff:g1 PagegRef:g3
MedgC
, Keywords:gShareholdergWealth,gGoalgofgthegFirmgLe
arninggObj.:gL.O.g1.1
AACSB:g ReflectivegThinking
5) Itgisgimportantgtogevaluategagcorporategmanager'sgfinancialgdecisiongbygmeasuringgthegeffectgthegdecision
shouldghavegongthegcorporation'sgstockgpricegifgeverythinggelsegweregheldgconstant.gA
nswer:g TRUE
Diff:g2 PagegRef:g4
Keywords:gGoalgofgthegFirm,gMaximizegShareholdergWealthgLearn
inggObj.:gL.O.g1.1
AACSB:g ReflectivegThinking
MedgC