Test Bank — Essentials of Financial Management, 5th Edition (Brigham, Houston, Hsu, Kong & Bany-Ariffin, 2022) | All Chapters 1-21 Covered

TEST BANK
Essentials of Financial Management
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Eugene Brigham, Joel Houston, Jun-Ming Hsu, Yoon Kee Kong, Bany-Ariffin

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5th Edition
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TEST BANK
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, TABLE OF CONTENTS
Test Bank: Essentials of Financial Management, 5th Edition
By Eugene Brigham, Joel Houston, Jun-Ming Hsu, Yoon Kee Kong, Bany-Ariffin
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PART I. INTRODUCTION TO FINANCIAL MANAGEMENT

CHAPTER 1 An Overview of Financial Management
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CHAPTER 2 Financial Markets and Institutions

PART II. FUNDAMENTAL CONCEPTS IN FINANCIAL MANAGEMENT
AND FINANCIAL FORECASTING

CHAPTER 3 Financial Statements, Cash Flow, and Taxes
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CHAPTER 4 Analysis of Financial Statements

CHAPTER 5 Time Value of Money

CHAPTER 6 Financial Planning and Forecasting
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PART III. FINANCIAL ASSETS

CHAPTER 7 Interest Rates
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CHAPTER 8 Risk and Rates of Return

CHAPTER 9 Bonds and Their Valuation

CHAPTER 10 Stocks and Their Valuation

PART IV. INVESTING IN LONG-TERM ASSETS: CAPITAL
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BUDGETING

CHAPTER 11 The Cost of Capital

CHAPTER 12 The Basics of Capital Budgeting
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CHAPTER 13 Cash Flow Estimation and Risk Analysis

CHAPTER 14 Real Options and Other Topics in Capital Budgeting

PART V. CAPITAL STRUCTURE, DIVIDEND POLICY, AND WORKING
CAPITAL MANAGEMENT
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CHAPTER 15 Capital Structure and Leverage

CHAPTER 16 Distributions to Shareholders: Dividends and Share Repurchases

CHAPTER 17 Working Capital Management
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PART VI. SPECIAL TOPICS IN FINANCIAL MANAGEMENT

CHAPTER 18 Derivatives and Risk Management

CHAPTER 19 Multinational Financial Management

, CHAPTER 20 Hybrid Financing: Preferred Stock, Leasing, Warrants, and Convertibles

CHAPTER 21 Mergers and Acquisitions
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, Chapter 1. An Overview of Financial Management.
Note that there is an overlap between the T/F and multiple-choice questions, as some of the T/F statements are used in
multiple-choice questions.
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Multiple Choice: True/False


1. In most corporations, the CFO ranks under the CEO.
a. True
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b. False
ANSWER: True
POINTS: 1
DIFFICULTY: EASY
REFERENCES: 1-1 What Is Finance?
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QUESTION TYPE: True / False TOPICS:
Role of finance
KEYWORDS: Bloom's Knowledge
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2. The Chairman of the Board must also be the CEO.
a. True
b. False
ANSWER: False
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POINTS: 1
DIFFICULTY: EASY
REFERENCES: 1-1 What Is Finance?
QUESTION TYPE: True / False TOPICS:
Role of finance
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KEYWORDS: Bloom's: Knowledge

3. The board of directors is the highest ranking body in a corporation, and the chairman of the board is the highest ranking
individual. The CEO generally works under the board and its chairman, and the board generally has the authority to
remove the CEO under certain conditions. The CEO, however, cannot remove the board, but he or she can endeavor to
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have the board voted out and a new board voted in should a conflict arise. It is possible for a person to simultaneously
serve as CEO and chairman of the board, though many corporate control experts believe it is bad to vest both offices in
the same person.
a. True
b. False
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ANSWER: True
POINTS: 1
DIFFICULTY: EASY
REFERENCES: 1-1 What Is Finance?
QUESTION TYPE: True / False TOPICS:
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Role of finance
KEYWORDS: Bloom's: Knowledge

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