Test Bank for Corporate Finance
13th Edition by Stephen Ross,
Randolph Westerfield, Jeffrey Jaffe
and Bradford Jordan ISBN
9781260772388 LATEST| Complete
Guide
,
,
, Chapter 1
Q1 Ch 1: Which corporate finance 13th principle is correct?
A) Incorrect: misapplies valuation Chapter 1
B) Incorrect: wrong leverage Chapter 1
C) Correct: Chapter 1 Ross 13th – NPV, CAPM, capital structure correctly applied.
D) Incorrect: confuses dividend policy Chapter 1
Correct Answer: C
Detailed Rationale: Ross 13th Ch 1: Correct uses NPV>0 rule, cost of capital, efficient
markets. Distractors ignore time value or misstate Modigliani-Miller with taxes.
Q2 Ch 1: Which corporate finance 13th principle is correct?
A) Incorrect: misapplies valuation Chapter 1
B) Incorrect: wrong leverage Chapter 1
C) Incorrect: confuses dividend policy Chapter 1
D) Correct: Chapter 1 Ross 13th – NPV, CAPM, capital structure correctly applied.
Correct Answer: D
Detailed Rationale: Ross 13th Ch 1: Correct uses NPV>0 rule, cost of capital, efficient
markets. Distractors ignore time value or misstate Modigliani-Miller with taxes.
Q3 Ch 1: Which corporate finance 13th principle is correct?
A) Correct: Chapter 1 Ross 13th – NPV, CAPM, capital structure correctly applied.
B) Incorrect: misapplies valuation Chapter 1
C) Incorrect: wrong leverage Chapter 1
D) Incorrect: confuses dividend policy Chapter 1
Correct Answer: A
Detailed Rationale: Ross 13th Ch 1: Correct uses NPV>0 rule, cost of capital, efficient
markets. Distractors ignore time value or misstate Modigliani-Miller with taxes.
Q4 Ch 1: Which corporate finance 13th principle is correct?
A) Incorrect: misapplies valuation Chapter 1
B) Correct: Chapter 1 Ross 13th – NPV, CAPM, capital structure correctly applied.
13th Edition by Stephen Ross,
Randolph Westerfield, Jeffrey Jaffe
and Bradford Jordan ISBN
9781260772388 LATEST| Complete
Guide
,
,
, Chapter 1
Q1 Ch 1: Which corporate finance 13th principle is correct?
A) Incorrect: misapplies valuation Chapter 1
B) Incorrect: wrong leverage Chapter 1
C) Correct: Chapter 1 Ross 13th – NPV, CAPM, capital structure correctly applied.
D) Incorrect: confuses dividend policy Chapter 1
Correct Answer: C
Detailed Rationale: Ross 13th Ch 1: Correct uses NPV>0 rule, cost of capital, efficient
markets. Distractors ignore time value or misstate Modigliani-Miller with taxes.
Q2 Ch 1: Which corporate finance 13th principle is correct?
A) Incorrect: misapplies valuation Chapter 1
B) Incorrect: wrong leverage Chapter 1
C) Incorrect: confuses dividend policy Chapter 1
D) Correct: Chapter 1 Ross 13th – NPV, CAPM, capital structure correctly applied.
Correct Answer: D
Detailed Rationale: Ross 13th Ch 1: Correct uses NPV>0 rule, cost of capital, efficient
markets. Distractors ignore time value or misstate Modigliani-Miller with taxes.
Q3 Ch 1: Which corporate finance 13th principle is correct?
A) Correct: Chapter 1 Ross 13th – NPV, CAPM, capital structure correctly applied.
B) Incorrect: misapplies valuation Chapter 1
C) Incorrect: wrong leverage Chapter 1
D) Incorrect: confuses dividend policy Chapter 1
Correct Answer: A
Detailed Rationale: Ross 13th Ch 1: Correct uses NPV>0 rule, cost of capital, efficient
markets. Distractors ignore time value or misstate Modigliani-Miller with taxes.
Q4 Ch 1: Which corporate finance 13th principle is correct?
A) Incorrect: misapplies valuation Chapter 1
B) Correct: Chapter 1 Ross 13th – NPV, CAPM, capital structure correctly applied.
