Test Bank for Corporate Finance, Canadian Edition 5th Edition by Jonathan Berk, David Stangeland, Peter DeMarzo

TEST BANK
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Corporate Finance, Canadian Edition, 6th Edition
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by Jonathan Berk, Peter DeMarzo, All Chapters 1 - 31
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,TABLE OF CONTENTS m m




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




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 m




6. Valuing Bonds m




7. Investment Decision Rules m m




8. Fundamentals of Capital Budgeting m m m




9. Valuing Stocks m




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 m m m m




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 m




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 m




21. Option Valuation
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22. Real Options
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23. Raising Equity Capital m m




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




27. Short-Term Financial Planning m m




28. Mergers and Acquisitions m m




29. Corporate Governance m




30. Risk Management
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,31. International Corporate Finance
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, 1. The Corporation and Financial Markets m m m m




1.1 The Three Types of Firms m m m m




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




B) two or more people
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C) shareholders
D) banker
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ANSWER A m




Diff: 1 Type: MC
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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
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number offirms?
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A) Limited Liability Partnership m m




B) Limited Partnership m




C) Sole Proprietorship m




D) PubliclyTraded m




CorporationANSWER: C
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Diff: 1 Type: MC
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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 m m




B) Limited Partnership m




C) Publicly Owned Corporation m m




D) Limited Liability m




CompanyANSWER: C
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Diff: 1 Type: MC
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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 m




B) Ease of setup m m




C) Limited liability m




D) No separation of ownership and
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controlANSWER: C
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Diff: 2 Type: MC
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