TEST BANK For Corporate Finance 6th Edition by Berk & DeMarzo, Verified Chapters 1 - 31, Complete Newest Version

TEST BANK
Corporate Finance, Canadian Edition, 6th Edition
by Jonathan Berk, Peter DeMarzo, All Chapters 1 -

,31 tg

,TABLE OF CONTENTS tg tg




1. The Corporation and Financial Markets
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2. Introduction to Financial Statement Analysis tg tg tg tg




3. Financial Decision Making and the Law of One Price
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4. The Time Value of Money
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5. Interest Rates tg




6. Valuing Bonds tg




7. Investment Decision Rules tg tg




8. Fundamentals of Capital Budgeting tg tg tg




9. Valuing Stocks tg




10.Capital Markets and the Pricing of Risk
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11.Optimal Portfolio Choice and the Capital Asset Pricing Model
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12.Estimating the Cost of Capital tg tg tg tg




13.Investor Behavior and Capital Market Efficiency
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14.Capital Structure in a Perfect Market
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15.Debt and Taxes
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16.Financial Distress, Managerial Incentives, and Information
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17.Payout Policy tg




18.Capital Budgeting and Valuation with Leverage
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19.Valuation and Financial Modeling: A Case Study
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20.Financial Options tg




21.Option Valuation tg




22.Real Options
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23.Raising Equity Capital tg tg




24.Debt Financing
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25.Leasing
26.Working Capital Management tg tg




27.Short-Term Financial Planning tg tg




28.Mergers and Acquisitions tg tg




29.Corporate Governance tg




30.Risk Management
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31.International Corporate Finance tg tg

, 1. The Corporation and Financial Markets
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1.1 The Three Types of Firms tg tg tg tg




1) A sole proprietorship is owned by:
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A) one person tg



B) two or more people tg tg tg



C) shareholders
D) bankers tg


ANSWER tg



A

Diff: 1 Type: MC tg tg



Topic: 1.1 The Three Types of Firms
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2) In Canada, which of the following organization forms accounts for the greatest numbe
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r offirms?
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A) Limited Liability Partnership tg tg



B) Limited Partnership tg



C) Sole Proprietorship tg



D) Publicly Traded Corporatio tg tg



nANSWER: C
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Diff: 1 Type: MC tg tg



Topic: 1.1 The Three Types of Firms
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3) Which of the following organization forms earns the most revenue?
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A) Privately Owned Corporation tg tg



B) Limited Partnership tg



C) Publicly Owned Corporation tg tg



D) Limited Liability Compan tg tg



yANSWER: C
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Diff: 1 Type: MC tg tg



Topic: 1.1 The Three Types of Firms
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4) Which of the following is NOT an advantage of a sole proprietorship?
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A) Single taxation tg



B) Ease of setup tg tg



C) Limited liability tg



D) No separation of ownership and contr
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olANSWER: C
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Diff: 2 Type: MC tg tg



Topic: 1.1 The Three Types of Firms
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