TEST BANK for Corporate Finance 13th
Edition by Stephen A. Ross, Randolph W.
Westerfield
ALL CHAPTERS 1-31| VERIFIED
QUESTIONS AND ANSWERS
ALL ANSWERSARE AT THE END OF
EACH CHAPTER
Te
st
Ba
nk
er
PR
O
1
, TABLE OF CONTENTS
PART ONE: OVERVIEW
1. Introduction to Corporate Finance
2. Financial Statements and Cash Flow
3. Financial Statements Analysis and Financial Models
PART TWO: VALUATION AND CAPITAL BUDGETING
4. Discounted Cash Flow Valuation
5. Net Present Value and Other Investment Rules
6. Making Capital Investment Decisions
7. Risk Analysis, Real Options, and Capital Budgeting
Te
8. Interest Rates and Bond Valuation
st
9. Stock Valuation
PART THREE: RISK
Ba
10. Lessons from Market History
nk
11. Return, Risk, and the Capital Asset Pricing Model
12. An Alternative View of Risk and Return
er
13. Risk, Cost of Capital, and Valuation
PR
PART FOUR: CAPITAL STRUCTURE AND DIVIDEND POLICY
O
14. Efficient Capital Markets and Behavioral Challenges
15. Long-Term Financing
16. Capital Structure: Basic Concepts
17. Capital Structure: Limits to the Use of Debt
18. Valuation and Capital Budgeting for the Levered Firm
19. Dividends and Other Payouts
PART FIVE: LONG-TERM FINANCE
20. Raising Capital
21. Leasing
2
,PART SIX: OPTIONS, FUTURES, AND CORPORATE FINANCE
22. Options and Corporate Finance
23. Options and Corporate Finance: Extensions and Applications
24. Warrants and Convertibles
25. Derivatives and Hedging Risk
PART SEVEN: SHORT-TERM FINANCE
26. Short-Term Finance and Planning
27. Cash Management
28. Credit and Inventory Management
PART EIGHT: SPECIAL TOPICS
Te
29. Mergers, Acquisitions, and Divestitures
30. Financial Distress
st
31. International Corporate Finance
Ba
nk
Chapter 1: Introduction to Corporate Finance
er
MULTIPLE CHOICE - Choose the one alternative that best completes the statement or answers the question.
PR
1) Generally, among those who report directly to the are the treasurer and the controller of a corporation.
O
A) board of directors
B) chairperson of the board
C) chief executive officer
D) president
E) chief financial officer
2) A typical chain of command in a corporation is described by which one of the following statements?
A) The information systems manager reports to the treasurer.
B) The credit manager reports to the treasurer.
C) The controller reports to the chief executive officer.
3
, D) The tax manager reports to the treasurer.
E) The capital expenditures manager reports to the controller.
3) Answering which one of the following questions involves making a capital budgeting decision?
A) How much debt should the firm borrow from a particular lender?
B) Should the firm build a new production facility?
C) Should the firm issue new equity to pay for its growth goals?
D) How much inventory should the firm keep on hand?
E) How much credit should the firm extend to a particular customer?
Te
4) Which one of the following statements is accurate?
A) Net working capital equals current assets plus current liabilities.
st
B) Current liabilities are debts that must be repaid in 18 months or less.
Ba
C) Current assets are assets with short lives, such as accounts receivable.
nk
D) Long-term debt is defined as a residual claim on a firm’s assets.
E) Tangible assets are fixed assets such as patents.
er
PR
5) Among the typical responsibilities of the corporate controller is:
A) capital expenditures management.
O
B) cash management.
C) tax reporting.
D) financial planning.
E) credit management.
6) is typically the responsibility of the corporate treasurer.
A) Financial planning
B) Cost accounting
C) Tax reporting
4
Edition by Stephen A. Ross, Randolph W.
Westerfield
ALL CHAPTERS 1-31| VERIFIED
QUESTIONS AND ANSWERS
ALL ANSWERSARE AT THE END OF
EACH CHAPTER
Te
st
Ba
nk
er
PR
O
1
, TABLE OF CONTENTS
PART ONE: OVERVIEW
1. Introduction to Corporate Finance
2. Financial Statements and Cash Flow
3. Financial Statements Analysis and Financial Models
PART TWO: VALUATION AND CAPITAL BUDGETING
4. Discounted Cash Flow Valuation
5. Net Present Value and Other Investment Rules
6. Making Capital Investment Decisions
7. Risk Analysis, Real Options, and Capital Budgeting
Te
8. Interest Rates and Bond Valuation
st
9. Stock Valuation
PART THREE: RISK
Ba
10. Lessons from Market History
nk
11. Return, Risk, and the Capital Asset Pricing Model
12. An Alternative View of Risk and Return
er
13. Risk, Cost of Capital, and Valuation
PR
PART FOUR: CAPITAL STRUCTURE AND DIVIDEND POLICY
O
14. Efficient Capital Markets and Behavioral Challenges
15. Long-Term Financing
16. Capital Structure: Basic Concepts
17. Capital Structure: Limits to the Use of Debt
18. Valuation and Capital Budgeting for the Levered Firm
19. Dividends and Other Payouts
PART FIVE: LONG-TERM FINANCE
20. Raising Capital
21. Leasing
2
,PART SIX: OPTIONS, FUTURES, AND CORPORATE FINANCE
22. Options and Corporate Finance
23. Options and Corporate Finance: Extensions and Applications
24. Warrants and Convertibles
25. Derivatives and Hedging Risk
PART SEVEN: SHORT-TERM FINANCE
26. Short-Term Finance and Planning
27. Cash Management
28. Credit and Inventory Management
PART EIGHT: SPECIAL TOPICS
Te
29. Mergers, Acquisitions, and Divestitures
30. Financial Distress
st
31. International Corporate Finance
Ba
nk
Chapter 1: Introduction to Corporate Finance
er
MULTIPLE CHOICE - Choose the one alternative that best completes the statement or answers the question.
PR
1) Generally, among those who report directly to the are the treasurer and the controller of a corporation.
O
A) board of directors
B) chairperson of the board
C) chief executive officer
D) president
E) chief financial officer
2) A typical chain of command in a corporation is described by which one of the following statements?
A) The information systems manager reports to the treasurer.
B) The credit manager reports to the treasurer.
C) The controller reports to the chief executive officer.
3
, D) The tax manager reports to the treasurer.
E) The capital expenditures manager reports to the controller.
3) Answering which one of the following questions involves making a capital budgeting decision?
A) How much debt should the firm borrow from a particular lender?
B) Should the firm build a new production facility?
C) Should the firm issue new equity to pay for its growth goals?
D) How much inventory should the firm keep on hand?
E) How much credit should the firm extend to a particular customer?
Te
4) Which one of the following statements is accurate?
A) Net working capital equals current assets plus current liabilities.
st
B) Current liabilities are debts that must be repaid in 18 months or less.
Ba
C) Current assets are assets with short lives, such as accounts receivable.
nk
D) Long-term debt is defined as a residual claim on a firm’s assets.
E) Tangible assets are fixed assets such as patents.
er
PR
5) Among the typical responsibilities of the corporate controller is:
A) capital expenditures management.
O
B) cash management.
C) tax reporting.
D) financial planning.
E) credit management.
6) is typically the responsibility of the corporate treasurer.
A) Financial planning
B) Cost accounting
C) Tax reporting
4
