Test Bank for Fundamentals of Financial Management, 16th Edition by Eugene F. Brigham

Test Bank for Fundamentals of Financial Management 16e 16th Edition by Eugene F. Brigham, Joel F. Houston. ISBN-13: 7574 Full Chapters test bank included Part 1: Introduction to Financial Management Chapter 1: An Overview of Financial Management Putting Things in Perspective 1-1: What is Finance? 1-2: Jobs in Finance 1-3: Forms of Business Organization 1-4: The Main Financial Goal: Creating Value for Investors 1-5: Stockholder–Manager Conflicts 1-6: Stockholder–Debtholder Conflicts 1-7: Balancing Shareholder Interests and the Interests of Society 1-8: Business Ethics Tying It All Together Chapter 2: Financial Markets and Institutions Putting Things in Perspective 2-1: The Capital Allocation Process 2-2: Financial Markets 2-3: Financial Institutions 2-4: The Stock Market 2-5: The Market for Common Stock 2-6: Stock Markets and Returns 2-7: Stock Market Efficiency Tying It All Together Integrated Case: Smyth Barry & Company Part 2: Fundamental Concepts in Financial Management Chapter 3: Financial Statements, Cash Flow, and Taxes Putting Things in Perspective 3-1: Financial Statements and Reports 3-2: The Balance Sheet 3-3: The Income Statement 3-4: Statement of Cash Flows 3-5: Statement of Stockholders’ Equity 3-6: Uses and Limitations of Financial Statements 3-7: Free Cash Flow 3-8: MVA and EVA 3-9: Income Taxes Tying It All Together Integrated Case: D’Leon Inc., Part I Chapter 4: Analysis of Financial Statements Putting Things in Perspective 4-1: Ratio Analysis 4-2: Liquidity Ratios 4-3: Asset Management Ratios 4-4: Debt Management Ratios 4-5: Profitability Ratios 4-6: Market Value Ratios 4-7: Tying the Ratios Together: The DuPont Equation 4-8: Potential Misuses of ROE 4-9: Using Financial Ratios to Assess Performance 4-10: Uses and Limitations of Ratios 4-11: Looking Beyond the Numbers Tying It All Together Integrated Case: D’Leon Inc., Part II Chapter 5: Time Value of Money Putting Things in Perspective 5-1: Time Lines 5-2: Future Values 5-3: Present Values 5-4: Finding the Interest Rate, I 5-5: Finding the Number of Years, N 5-6: Annuities 5-7: Future Value of an Ordinary Annuity 5-8: Future Value of an Annuity Due 5-9: Present Value of an Ordinary Annuity 5-10: Finding Annuity Payments, Periods, and Interest Rates 5-11: Perpetuities 5-12: Uneven Cash Flows 5-13: Future Value of an Uneven Cash Flow Stream 5-14: Solving for I with Uneven Cash Flows 5-15: Semiannual and Other Compounding Periods 5-16: Comparing Interest Rates 5-17: Fractional Time Periods 5-18: Amortized Loans Tying It All Together Integrated Case: First National Bank Part 3: Financial Assets Chapter 6: Interest Rates Putting Things in Perspective 6-1: The Cost of Money 6-2: Interest Rate Levels 6-3: The Determinants of Market Interest Rates 6-4: The Term Structure of Interest Rates 6-5: What Determines the Shape of the Yield Curve? 6-6: Using the Yield Curve to Estimate Future Interest Rates 6-7: Macroeconomic Factors That Influence Interest Rate Levels 6-8: Interest Rates and Business Decisions Tying It All Together IIntegrated Case: Morton Handley & Company Chapter 7: Bonds and Their Valuation Putting Things in Perspective 7-1: Who Issues Bonds? 7-2: Key Characteristics of Bonds 7-3: Bond Valuation 7-4: Bond Yields 7-5: Changes in Bond Values over Time 7-6: Bonds with Semiannual Coupons 7-7: Assessing a Bond’s Riskiness 7-8: Default Risk 7-9: Bond Markets Tying It All Together Integrated Case: Western Money Management Inc. Chapter 8: Risk and Rates of Return Putting Things in Perspective 8-1: The Risk-Return Trade-Off 8-2: Stand-Alone Risk 8-3: Risk in a Portfolio Context: The CAPM 8-4: The Relationship between Risk and Rates of Return 8-5: Some Concerns about Beta and the CAPM 8-6: Some Concluding Thoughts: Implications for Corporate Managers and Investors Tying It All Together Integrated Case: Merrill Finch Inc. Chapter 9: Stocks and Their Valuation Putting Things in Perspective 9-1: Legal Rights and Privileges of Common Stockholders 9-2: Types of Common Stock 9-3: Stock Price versus Intrinsic Value 9-4: The Discounted Dividend Model 9-5: Constant Growth Stocks 9-6: Valuing Nonconstant Growth Stocks 9-7: Enterprise-Based Approach to Valuation 9-8: Preferred Stock Tying It All Together Integrated Case: Mutual of Chicago Insurance Company Part 4: Investing in Long-Term Assets: Capital Budgeting Chapter 10: The Cost of Capital Putting Things in Perspective 10-1: An Overview of the Weighted Average Cost of Capital (WACC) 10-2: Basic Definitions 10-3: Cost of Debt, rd(12T) 10-4: Cost of Preferred Stock, rp 10-5: Cost of Retained Earnings, rs 10-6: Cost of New Common Stock, re 10-7: Composite, or Weighted Average, Cost of Capital, WACC 10-8: Factors That Affect the WACC 10-9: Adjusting the Cost of Capital for Risk 10-10: Some Other Problems with Cost of Capital Estimates Tying It All Together IIntegrated Case: Coleman Technologies Inc. Chapter 11: The Basics of Capital Budgeting Putting Things in Perspective 11-1: An Overview of Capital Budgeting 11-2: Net Present Value (NPV) 11-3: Internal Rate of Return (IRR) 11-4: Multiple Internal Rates of Return 11-5: Reinvestment Rate Assumptions 11-6: Modified Internal Rate of Return (MIRR) 11-7: NPV Profiles 11-8: Payback Period 11-9: Conclusions on Capital Budgeting Methods 11-10: Decision Criteria Used in Practice Tying It All Together IIntegrated Case: Allied Components Company Chapter 12: Cash Flow Estimation and Risk Analysis Putting Things in Perspective 12-1: Conceptual Issues in Cash Flow Estimation 12-2: Analysis of an Expansion Project 12-3: Replacement Analysis 12-4: Risk Analysis in Capital Budgeting 12-5: Measuring Stand-Alone Risk 12-6: Within-Firm and Beta Risk 12-7: Unequal Project Lives Tying It All Together Integrated Case: Allied Food Products Chapter 13: Real Options and Other Topics in Capital Budgeting Putting Things in Perspective 13-1: Introduction to Real Options 13-2: Growth (Expansion) Options 13-3: Abandonment/Shutdown Options 13-4: Investment Timing Options 13-5: Flexibility Options 13-6: The Optimal Capital Budget 13-7: The Post-Audit Tying It All Together IIntegrated Case: 21st Century Education Products Part 5: Capital Structure and Dividend Policy Chapter 14: Capital Structure and Leverage Putting Things in Perspective 14-1: Book, Market, or “Target” Weights? 14-2: Business and Financial Risk 14-3: Determining the Optimal Capital Structure 14-4: Capital Structure Theory 14-5: Checklist for Capital Structure Decisions 14-6: Variations in Capital Structures Tying It All Together Integrated Case: Campus Deli Inc. Chapter 15: Distributions to Shareholders: Dividends and Share Repurchases Putting Things in Perspective 15-1: Dividends versus Capital Gains: What Do Investors Prefer? 15-2: Other Dividend Policy Issues 15-3: Establishing the Dividend Policy in Practice 15-4: Dividend Reinvestment Plans 15-5: Summary of Factors Influencing Dividend Policy 15-6: Stock Dividends and Stock Splits 15-7: Stock Repurchases Tying It All Together Integrated Case: Southeastern Steel Company Part 6: Working Capital Management, Financial Forecasting, and Multinational Financial Management Chapter 16: Working Capital Management Putting Things in Perspective 16-1: Background on Working Capital 16-2: Current Assets Investment Policies 16-3: Current Assets Financing Policies 16-4: The Cash Conversion Cycle 16-5: The Cash Budget 16-6: Cash and Marketable Securities 16-7: Inventories 16-8: Accounts Receivable 16-9: Accounts Payable (Trade Credit) 16-10: Bank Loans 16-11: Commercial Paper 16-12: Accruals (Accrued Liabilities) 16-13: Use of Security in Short-Term Financing Tying It All Together Integrated Case: SKI Equipment Inc. Chapter 17: Financial Planning and Forecasting Putting Things in Perspective 17-1: Strategic Planning 17-2: The Sales Forecast 17-3: The AFN Equation 17-4: Forecasted Financial Statements 17-5: Using Regression to Improve Forecasts 17-6: Analyzing the Effects of Changing Ratios Tying It All Together Integrated Case: New World Chemicals Inc. Chapter 18: Multinational Financial Management Putting Things in Perspective 18-1: Multinational, or Global, Corporations 18-2: Multinational versus Domestic Financial Management 18-3: The International Monetary System 18-4: Foreign Exchange Rate Quotations 18-5: Trading in Foreign Exchange 18-6: Interest Rate Parity 18-7: Purchasing Power Parity 18-8: Inflation, Interest Rates, and Exchange Rates 18-9: International Money and Capital Markets 18-10: Investing Overseas 18-11: International Capital Budgeting 18-12: International Capital Structures Tying It All Together Integrated Case: Citrus Products Inc. Part 7: Special Topics in Financial Management Chapter 19: Derivatives and Risk Management Putting Things in Perspective 19-1: Reasons to Manage Risk 19-2: Background on Derivatives 19-3: Options 19-4: Introduction to Option Pricing Models 19-5: The Black-Scholes Option Pricing Model (OPM) 19-6: Forward and Futures Contracts 19-7: Other Types of Derivatives 19-8: Using Derivatives to Reduce Risks 19-9: Risk Management Tying It All Together Integrated Case: Tropical Sweets Inc. Chapter 20: Hybrid Financing: Preferred Stock, Leasing, Warrants, and Convertibles Putting Things in Perspective 20-1: Preferred Stock 20-2: Leasing 20-3: Warrants 20-4: Convertibles 20-5: A Final Comparison of Warrants and Convertibles 20-6: Reporting Earnings When Warrants or Convertibles Are Outstanding Tying It All Together Integrated Case: Fish & Chips Inc., Part I Integrated Case: Fish & Chips Inc., Part II Chapter 21: Mergers and Acquisitions Putting Things in Perspective 21-1: Rationale for Mergers 21-2: Types of Mergers 21-3: Level of Merger Activity 21-4: Hostile versus Friendly Takeovers 21-5: Merger Analysis 21-6: The Role of Investment Bankers 21-7: Do Mergers Create Value? The Empirical Evidence 21-8: Corporate Alliances 21-9: Private Equity Investments 21-10: Divestitures