TEST BANK, FOR FOUNDATIONS OF FINANCIAL MANAGEMENT: 18TH EDITION BY BLOCK |HIRT |DANIELSEN LATEST EDITON 2025/2026

TEST BANK, FOR FOUNDATIONS OF
FINANCIAL MANAGEMENT: 18TH EDITION BY
BLOCK |HIRT |DANIELSEN LATEST EDITON
2025/2026




1

, TABLE OF CONTENTS
PART 1: INTRODUCTION
1. The Goals and Activities of Financial Management

PART 2: FINANCIAL ANALYSIS AND PLANNING
2. Review of Accounting
3. Financial Analysis
4. Financial Forecasting
5. Operating and Financial Leverage

PART 3: WORKING CAPITAL MANAGEMENT
6. Working Capital and the Financing Decision
7. Current Asset Management
8. Sources of Short-Term Financing

PART 4: THE CAPITAL BUDGETING PROCESS
9. The Time Value of Money
10. Valuation and Rates of Return
11. Cost of Capital
12. The Capital Budgeting Decision
13. Risk and Capital Budgeting

PART 5: LONG-TERM FINANCING
14. Capital Markets
15. Investment Banking
16. Long-Term Debt and Lease Financing
17. Common and Preferred Stock Financing
18. Dividend Policy and Retained Earnings
19. Convertibles, Warrants, and Derivatives

PART 6: EXPANDING THE PERSPECTIVE OF CORPORATE FINANCE
20. External Growth through Mergers
21. International Financial Management




2

,Foundations Of Financial Management, 17e (Block)
Chapter 1 The Goals And Activities Of Financial Management


1) As Finance Emerged As A New Field, Much Emphasis Was Placed On Mergers And Acquisitions.

ANS: TRUE Difficulty:
1 Easy
Topic: Introduction To Corporate Finance
Learning Objective: 01-01 The Field Of Finance Integrates Concepts From Economics, Accounting,
And A Number Of Other Areas.
Bloom's: Remember AACSB:
Reflective Thinking
Accessibility: Keyboard Navigation

2) Inflation Is Assumed To Be A Temporary Problem That Does Not Affect Financial Decisions.

ANS: FALSE
Difficulty: 1 Easy
Topic: Financial Management Decisions
Learning Objective: 01-01 The Field Of Finance Integrates Concepts From Economics, Accounting,
And A Number Of Other Areas.
Bloom's: Remember AACSB:
Reflective Thinking
Accessibility: Keyboard Navigation

3) Financial Capital Is Composed Of Long-Term Plant And Equipment, As Well As Other
Tangible Investments.

ANS: FALSE
Difficulty: 1 Easy
Topic: Introduction To Corporate Finance
Learning Objective: 01-01 The Field Of Finance Integrates Concepts From Economics, Accounting,
And A Number Of Other Areas.
Bloom's: Remember AACSB:
Reflective Thinking
Accessibility: Keyboard Navigation

4) Real Capital Is Composed Of Long-Term Plant And Equipment.

ANS: TRUE Difficulty:
1 Easy
Topic: Introduction To Corporate Finance
Learning Objective: 01-01 The Field Of Finance Integrates Concepts From Economics, Accounting,

3

, And A Number Of Other Areas.
Bloom's: Remember




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