Solutions Manual For Fundamentals of Corporate Finance, 14th Edition by Ross, Westerfield, and Jordan, Verified Chapters 1 - 27

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,Chapter 1
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Studentname:_ x x




MULTIPLE CHOICE - x x



Choose the one alternative that best completes thefstatement orfanswers the question.
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1) Generally, among those who report directlyto the x x x x x x



are the treasurer and thecontroller of a corporation.
x x x x x x x




A) board of directors x x



B) chairperson of the board x x x



C) chief executive officer
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D) president
E) chief financial officer
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2) A typical chainfof command in a corporation is described by which one of the followingfsta te
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ments?

A) Thefinformation systems manager reports to the treasurer. x x x x x x



B) The credit managerfreportsto the treasurer.
x x x x



C) The controllerfreports to the chief executive officer.
x x x x x x



D) Theftax managerfreports to the treasurer.
x x x x


E) The capital expenditures manager reportsto the controller.
x x x x x x




3) Answering which one of the following questions involves making a capital budgetingfde ci
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sion?




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, A) How much debt should the firm borrow from a particular lender?
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B) Should the firm build a new production facility?
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C) Should the firm issue new equityto payfor its growth goals?
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D) How much inventoryshould the firm keep on hand?
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E) How much credit shouldfthe firmextend to afparticular customer?
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4) Which one of the following statements is accurate?
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A) Net working capitalequals current assets plus current liabilities.
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B) Current liabilities are debts that must befrepaid in 18 months orfless.
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C) Current assets are assets with short lives, such as accounts receivable.
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D) Long-term debt is defined as a residual claim on a firm’s assets.
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E) Tangible assets are fixed assets such as patents.
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5) Among theftypical responsibilitiesfof the corporatefcontroller is:
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A) capital expenditures management.
x x



B) cash management.
x


C) tax reporting.
x



D) financial planning. x


E) credit management. x




6) is typically the responsibilityof the corporate treasurer.
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A) Financial planning x


B) Cost accounting
x



C) Tax reporting
x


D) Informationsystems
E) Financialaccounting



7) A firm’s
x define(s) its capital structure. x x x




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