TEST BANK
Corporate Finance, 5th edition
By Jonathan Berk, Peter DeMarzo
LU
XE
LI
BR
AR
Y
, Table of Content
PART 1: INTRODUCTION
1. The Corporation and Financial Markets
2. Introduction to Financial Statement Analysis
3. Financial Decision Making and the Law of One Price
PART 2: TIME, MONEY, AND INTEREST RATES
4. The Time Value of Money
LU
5. Interest Rates
6. Valuing Bonds
PART 3: VALUING PROJECTS AND FIRMS
XE
7. Investment Decision Rules
8. Fundamentals of Capital Budgeting
9. Valuing Stocks
PART 4: RISK AND RETURN
LI
10. Capital Markets and the Pricing of Risk
11. Optimal Portfolio Choice and the Capital Asset Pricing Model
BR
12. Estimating the Cost of Capital
13. Investor Behavior and Capital Market Efficiency
PART 5: CAPITAL STRUCTURE
AR
14. Capital Structure in a Perfect Market
15. Debt and Taxes
16. Financial Distress, Managerial Incentives, and Information
17. Payout Policy
Y
PART 6: ADVANCED VALUATION
18. Capital Budgeting and Valuation with Leverage
19. Valuation and Financial Modeling: A Case Study
PART 7: OPTIONS
20. Financial Options
21. Option Valuation
22. Real Options
,PART 8: LONG-TERM FINANCING
23. Raising Equity Capital
24. Debt Financing
25. Leasing
PART 9: SHORT-TERM FINANCING
26. Working Capital Management
27. Short-Term Financial Planning
LU
PART 10: SPECIAL TOPICS
28. Mergers and Acquisitions
29. Corporate Governance
XE
30. Risk Management
31. International Corporate Finance
LI
BR
AR
Y
, JHGFDS
Corporate Finance, 5e (Berk/DeMarzo)
Chapter 1 T h e Corporation
1.1 The Four Types of Firms
All Chapters Included
1) A sole proprietorship is owned by:
A) one person.
B) two or more persons. All Answers Included
C) shareholders.
D) bankers.
LU
Answer: A
Diff: 1
Section: 1.1 The Four Types of Firms
Skill: Definition
2) Which of the following organization forms for a business does NOT avoid double taxation?
XE
A) Limited partnership
B) "C" corporation
C) "S" corporation
D) Limited liability company
Answer: B
Diff: 1
LI
Section: 1.1 The Four Types of Firms
Skill: Conceptual
3) Which of the following organization forms accounts for the most revenue?
BR
A) "S" corporation
B) Limited partnership
C) "C" corporation
D) Limited liability company
Answer: C
Diff: 1
AR
Section: 1.1 The Four Types of Firms
Skill: Conceptual
4) Which of the following organization forms accounts for the greatest number of firms?
A) "S" corporation
B) Limited partnership
C) Sole proprietorship
Y
D) "C" corporation
Answer: C
Diff: 1
Section: 1.1 The Four Types of Firms
Skill: Conceptual
1
Copyright © 2020 Pearson Education, Inc.
Corporate Finance, 5th edition
By Jonathan Berk, Peter DeMarzo
LU
XE
LI
BR
AR
Y
, Table of Content
PART 1: INTRODUCTION
1. The Corporation and Financial Markets
2. Introduction to Financial Statement Analysis
3. Financial Decision Making and the Law of One Price
PART 2: TIME, MONEY, AND INTEREST RATES
4. The Time Value of Money
LU
5. Interest Rates
6. Valuing Bonds
PART 3: VALUING PROJECTS AND FIRMS
XE
7. Investment Decision Rules
8. Fundamentals of Capital Budgeting
9. Valuing Stocks
PART 4: RISK AND RETURN
LI
10. Capital Markets and the Pricing of Risk
11. Optimal Portfolio Choice and the Capital Asset Pricing Model
BR
12. Estimating the Cost of Capital
13. Investor Behavior and Capital Market Efficiency
PART 5: CAPITAL STRUCTURE
AR
14. Capital Structure in a Perfect Market
15. Debt and Taxes
16. Financial Distress, Managerial Incentives, and Information
17. Payout Policy
Y
PART 6: ADVANCED VALUATION
18. Capital Budgeting and Valuation with Leverage
19. Valuation and Financial Modeling: A Case Study
PART 7: OPTIONS
20. Financial Options
21. Option Valuation
22. Real Options
,PART 8: LONG-TERM FINANCING
23. Raising Equity Capital
24. Debt Financing
25. Leasing
PART 9: SHORT-TERM FINANCING
26. Working Capital Management
27. Short-Term Financial Planning
LU
PART 10: SPECIAL TOPICS
28. Mergers and Acquisitions
29. Corporate Governance
XE
30. Risk Management
31. International Corporate Finance
LI
BR
AR
Y
, JHGFDS
Corporate Finance, 5e (Berk/DeMarzo)
Chapter 1 T h e Corporation
1.1 The Four Types of Firms
All Chapters Included
1) A sole proprietorship is owned by:
A) one person.
B) two or more persons. All Answers Included
C) shareholders.
D) bankers.
LU
Answer: A
Diff: 1
Section: 1.1 The Four Types of Firms
Skill: Definition
2) Which of the following organization forms for a business does NOT avoid double taxation?
XE
A) Limited partnership
B) "C" corporation
C) "S" corporation
D) Limited liability company
Answer: B
Diff: 1
LI
Section: 1.1 The Four Types of Firms
Skill: Conceptual
3) Which of the following organization forms accounts for the most revenue?
BR
A) "S" corporation
B) Limited partnership
C) "C" corporation
D) Limited liability company
Answer: C
Diff: 1
AR
Section: 1.1 The Four Types of Firms
Skill: Conceptual
4) Which of the following organization forms accounts for the greatest number of firms?
A) "S" corporation
B) Limited partnership
C) Sole proprietorship
Y
D) "C" corporation
Answer: C
Diff: 1
Section: 1.1 The Four Types of Firms
Skill: Conceptual
1
Copyright © 2020 Pearson Education, Inc.
