TEST BANK FOR:
FOR FUNDAMENTALS OF CORPORATE FINANCE11TH
EDITION BY STEPHEN ROSS LATEST UPDATE
GRADED A+
, FUNDAMENTALS OF CORPORATE FINANCE, 11TH EDITION
SOLUTIONS FOR
CHAPTER 1 GOALS AND
GOVERNANCE OF THE
CORPORATION
1.
a. Investment Decision
b. Financial Asset
c. Public Corporation
d. Corporation
e. Treasurer
f. The Cost Resulting From Conflicts Of Interest Between Managers And Shareholders
Est Time: 01–05
Introduction To Corporate Finance
2. Investment Decisions, Typically Called Capital Budgeting, Relate To Investments In
Tangible And Intangible Assets. Financing Decisions Relate To The Raising Of Money
Through Debt And Equity. Repayment Of That Money As Well As Interest And
Dividends Are Also Financing Decisions.
a. Investment Decision
b. Financing Decision
c. Investment Decision
d. Investment Decision
e. Financing Decision
f. Financing Decision:
Est Time: 01–05
Financial Management Decisions
3. Both Capital Budgeting Decisions And Capital Structure Decisions Are Long-Term
Decisions. However, Capital Budgeting Decisions Are Long-Term Investment Decisions,
While Capital Structure Decisions Are Long-Term Financing Decisions. Capital Structure
Decisions Essentially Involve Selecting Between Equity Financing And Long-Term Debt
Financing.
Est Time: 01–05
Introduction To Corporate Finance
4.
a. A Share Of Stock Financial
b. A Personal Iou Financial
, c. A Trademark Real
d. A Truck Real
e. Undeveloped Land Real
f. The Balance In The Firm’s Checking Account Financial
g. An Experienced And Hardworking Sales Force Real
h. A Bank Loan Agreement Financial
Est Time: 01–05
Introduction To Corporate Finance
, 5. “Companies Usually Buy Real Assets. These Include Both Tangible Assets Such As
Executive Airplanes And Intangible Assets Such As Brand Names. To Pay For These
Assets, They Sell Financial Assets Such As Bonds. The Decision About Which Assets To
Buy Is Usually Termed The Capital Budgeting Or Investment Decision. The Decision
About How To Raise The Money Is Usually Termed The Financing Decision.”
Est Time: 01–05
Financial Management Decisions
6.
a. Private Corporation
b. Partnership
c. Public Corporation
d. Public Corporation
Est Time: 01–05
Forms Of Business Organization
7. Double Taxation Means That A Corporation’s Income Is Taxed First At The
Corporate Tax Rate. When The Income Is Distributed To Shareholders As
Dividends, The Income Is Taxed Again At Each Shareholder’s Personal Tax Rate.
Est Time: 01–05
Forms Of Business Organization
8. C. Ownership Can Be Transferred Without Affecting Operations And D. Managers Can Be
Fired With No Effect On Ownership.
Est Time: 01–05
Forms Of Business Organization
9. The Individual Stockholders Of A Corporation (I.E., The Owners) Are Legally
Distinct From The Corporation Itself, Which Is A Separate Legal Entity.
Consequently, The Stockholders Are Not Personally Liable For The Debts Of The
Corporation; The Stockholders’ Liability For The Debts Of The Corporation Is
Limited To The Investment Each Stockholder Has Made In The Shares Of The
Corporation.
Est Time: 01–05
Forms Of Business Organization
10. B. The Corporation Survives Even If Managers Are Dismissed And C. Shareholders Can
Sell Their Holdings Without Disrupting The Business.
Est Time: 01–05
Forms Of Business Organization
FOR FUNDAMENTALS OF CORPORATE FINANCE11TH
EDITION BY STEPHEN ROSS LATEST UPDATE
GRADED A+
, FUNDAMENTALS OF CORPORATE FINANCE, 11TH EDITION
SOLUTIONS FOR
CHAPTER 1 GOALS AND
GOVERNANCE OF THE
CORPORATION
1.
a. Investment Decision
b. Financial Asset
c. Public Corporation
d. Corporation
e. Treasurer
f. The Cost Resulting From Conflicts Of Interest Between Managers And Shareholders
Est Time: 01–05
Introduction To Corporate Finance
2. Investment Decisions, Typically Called Capital Budgeting, Relate To Investments In
Tangible And Intangible Assets. Financing Decisions Relate To The Raising Of Money
Through Debt And Equity. Repayment Of That Money As Well As Interest And
Dividends Are Also Financing Decisions.
a. Investment Decision
b. Financing Decision
c. Investment Decision
d. Investment Decision
e. Financing Decision
f. Financing Decision:
Est Time: 01–05
Financial Management Decisions
3. Both Capital Budgeting Decisions And Capital Structure Decisions Are Long-Term
Decisions. However, Capital Budgeting Decisions Are Long-Term Investment Decisions,
While Capital Structure Decisions Are Long-Term Financing Decisions. Capital Structure
Decisions Essentially Involve Selecting Between Equity Financing And Long-Term Debt
Financing.
Est Time: 01–05
Introduction To Corporate Finance
4.
a. A Share Of Stock Financial
b. A Personal Iou Financial
, c. A Trademark Real
d. A Truck Real
e. Undeveloped Land Real
f. The Balance In The Firm’s Checking Account Financial
g. An Experienced And Hardworking Sales Force Real
h. A Bank Loan Agreement Financial
Est Time: 01–05
Introduction To Corporate Finance
, 5. “Companies Usually Buy Real Assets. These Include Both Tangible Assets Such As
Executive Airplanes And Intangible Assets Such As Brand Names. To Pay For These
Assets, They Sell Financial Assets Such As Bonds. The Decision About Which Assets To
Buy Is Usually Termed The Capital Budgeting Or Investment Decision. The Decision
About How To Raise The Money Is Usually Termed The Financing Decision.”
Est Time: 01–05
Financial Management Decisions
6.
a. Private Corporation
b. Partnership
c. Public Corporation
d. Public Corporation
Est Time: 01–05
Forms Of Business Organization
7. Double Taxation Means That A Corporation’s Income Is Taxed First At The
Corporate Tax Rate. When The Income Is Distributed To Shareholders As
Dividends, The Income Is Taxed Again At Each Shareholder’s Personal Tax Rate.
Est Time: 01–05
Forms Of Business Organization
8. C. Ownership Can Be Transferred Without Affecting Operations And D. Managers Can Be
Fired With No Effect On Ownership.
Est Time: 01–05
Forms Of Business Organization
9. The Individual Stockholders Of A Corporation (I.E., The Owners) Are Legally
Distinct From The Corporation Itself, Which Is A Separate Legal Entity.
Consequently, The Stockholders Are Not Personally Liable For The Debts Of The
Corporation; The Stockholders’ Liability For The Debts Of The Corporation Is
Limited To The Investment Each Stockholder Has Made In The Shares Of The
Corporation.
Est Time: 01–05
Forms Of Business Organization
10. B. The Corporation Survives Even If Managers Are Dismissed And C. Shareholders Can
Sell Their Holdings Without Disrupting The Business.
Est Time: 01–05
Forms Of Business Organization
