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7?
24
us
ni
ge
dy
, Corporate Finance: Core Principles and Applications
Seventh Edition
Stephen A. Ross · Randolph W. Westerfield · Jeffrey Jaffe · Bradford D. Jordan · Kelly Shue
7TH EDITION · McGRAW HILL
tu
TABLE OF CONTENTS
PART 1 — OVERVIEW
d
Ch. 01 Introduction to Corporate Finance
yg
Ch. 02 Financial Statements and Cash Flow
Ch. 03 Financial Statements Analysis and Financial Models
en
PART 2 — VALUATION AND CAPITAL BUDGETING
Ch. 04 Discounted Cash Flow Valuation
Ch. 05 Interest Rates and Bond Valuation
iu
Ch. 06 Stock Valuation
s2
Ch. 07 Net Present Value and Other Investment Rules
Ch. 08 Making Capital Investment Decisions
47
Ch. 09 Risk Analysis, Real Options, and Capital Budgeting
PART 3 — RISK AND RETURN
Ch. 10 Risk and Return: Lessons from Market History
??
Ch. 11 Return and Risk: The Capital Asset Pricing Model (CAPM)
Ch. 12 Risk, Cost of Capital, and Valuation
??
PART 4 — CAPITAL STRUCTURE AND DIVIDEND POLICY
Ch. 13 Efficient Capital Markets and Behavioral Challenges
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Ch. 14 Capital Structure: Basic Concepts
Ch. 15 Capital Structure: Limits to the Use of Debt
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Ch. 16 Dividends and Other Payouts
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, PART 5 — SPECIAL TOPICS
Ch. 17 Options and Corporate Finance
Ch. 18 Short-Term Finance and Planning
Ch. 19 Raising Capital
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Ch. 20 International Corporate Finance
Ch. 21 Mergers and Acquisitions (Web Chapter)
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yg
en
iu
s2
47
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, TEST BANK FOR Corporate Finance Core Principles and
Applications 7th Edition By Stephen Ross
tu
Chapter 1-21 Answers are at the End of Each Chapter
Chapter 1
d
Student name:
1) A firm has common stock of $86, paid-in surplus of $230, total liabilities of $390, current
yg
assets of $350, and net fixed assets of $560. What is the amount of the shareholders' equity?
A) $910
B) $510
C) $520
en
D) $170
E) $706
iu
2) Recently, the owner of Martha's Wares encountered severe legal problems and is trying to
sell her business. The company built a building at a cost of $1,190,000 that is currently
appraised at $1,390,000. The equipment originally cost $670,000 and is currently valued at
$417,000. The inventory is valued on the balance sheet at $360,000 but has a market value of
s2
only one-half of that amount. The owner expects to collect 97 percent of the $200,200 in
accounts receivable. The firm has $11,200 in cash and owes a total of $1,390,000. The legal
problems are personal and unrelated to the actual business. What is the market value of this
47
firm?
A) $1,182,594
B) $802,394
C) $597,000
??
D) $1,542,594
E) $982,394
3) Ivan's, Incorporated, paid $500 in dividends and $595 in interest this past year. Common
??
stock increased by $205 and retained earnings decreased by $131. What is the net income for
the year?
A) $369
B) $800
??
C) $595
D) $964
E) $500
? ?
??
??
7?
24
us
ni
ge
dy
, Corporate Finance: Core Principles and Applications
Seventh Edition
Stephen A. Ross · Randolph W. Westerfield · Jeffrey Jaffe · Bradford D. Jordan · Kelly Shue
7TH EDITION · McGRAW HILL
tu
TABLE OF CONTENTS
PART 1 — OVERVIEW
d
Ch. 01 Introduction to Corporate Finance
yg
Ch. 02 Financial Statements and Cash Flow
Ch. 03 Financial Statements Analysis and Financial Models
en
PART 2 — VALUATION AND CAPITAL BUDGETING
Ch. 04 Discounted Cash Flow Valuation
Ch. 05 Interest Rates and Bond Valuation
iu
Ch. 06 Stock Valuation
s2
Ch. 07 Net Present Value and Other Investment Rules
Ch. 08 Making Capital Investment Decisions
47
Ch. 09 Risk Analysis, Real Options, and Capital Budgeting
PART 3 — RISK AND RETURN
Ch. 10 Risk and Return: Lessons from Market History
??
Ch. 11 Return and Risk: The Capital Asset Pricing Model (CAPM)
Ch. 12 Risk, Cost of Capital, and Valuation
??
PART 4 — CAPITAL STRUCTURE AND DIVIDEND POLICY
Ch. 13 Efficient Capital Markets and Behavioral Challenges
??
Ch. 14 Capital Structure: Basic Concepts
Ch. 15 Capital Structure: Limits to the Use of Debt
?
Ch. 16 Dividends and Other Payouts
?
, PART 5 — SPECIAL TOPICS
Ch. 17 Options and Corporate Finance
Ch. 18 Short-Term Finance and Planning
Ch. 19 Raising Capital
tu
Ch. 20 International Corporate Finance
Ch. 21 Mergers and Acquisitions (Web Chapter)
d
yg
en
iu
s2
47
??
??
??
??
, TEST BANK FOR Corporate Finance Core Principles and
Applications 7th Edition By Stephen Ross
tu
Chapter 1-21 Answers are at the End of Each Chapter
Chapter 1
d
Student name:
1) A firm has common stock of $86, paid-in surplus of $230, total liabilities of $390, current
yg
assets of $350, and net fixed assets of $560. What is the amount of the shareholders' equity?
A) $910
B) $510
C) $520
en
D) $170
E) $706
iu
2) Recently, the owner of Martha's Wares encountered severe legal problems and is trying to
sell her business. The company built a building at a cost of $1,190,000 that is currently
appraised at $1,390,000. The equipment originally cost $670,000 and is currently valued at
$417,000. The inventory is valued on the balance sheet at $360,000 but has a market value of
s2
only one-half of that amount. The owner expects to collect 97 percent of the $200,200 in
accounts receivable. The firm has $11,200 in cash and owes a total of $1,390,000. The legal
problems are personal and unrelated to the actual business. What is the market value of this
47
firm?
A) $1,182,594
B) $802,394
C) $597,000
??
D) $1,542,594
E) $982,394
3) Ivan's, Incorporated, paid $500 in dividends and $595 in interest this past year. Common
??
stock increased by $205 and retained earnings decreased by $131. What is the net income for
the year?
A) $369
B) $800
??
C) $595
D) $964
E) $500
? ?