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Fundamentals of Corporate Finance, 5th Edition by Robert , David , Bates & Gillan. (All Chapters 1-21) | TEST BANK

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TEST BANK for Fundamentals of Corporate Finance, Enhanced eText 5th Edition Robert Parrino, David Kidwell, Bates & Gillan. ISBN 5384, ISBN-13 978-8 -TABLE OF CONTENTS: Chapter 1 T he Financial Manager and the Firm Chapter 2 The Financial System and the Level of Interest Rates Chapter 3 Financial Statements, Cash Flows, and Taxes Chapter 4 Analyzing Financial Statements Chapter 5 The Time Value of Money Chapter 6 Discounted Cash Flows and Valuation Chapter 7 Risk and Return Chapter 8 Bond Valuation and the Structure of Interest Rates Chapter 9 Stock Valuation Chapter 10 The Fundamentals of Capital Budgeting Chapter 11 Cash Flows and Capital Budgeting Chapter 12 Evaluating Project Economics Chapter 13 The Cost of Capital Chapter 14 Working Capital Management Chapter 15 How Firms Raise Capital Chapter 16 Capital Structure Policy Chapter 17 Dividends, Stock Repurchases, and Payout Policy Chapter 18 Business Formation, Growth, and Valuation Chapter 19 Financial Planning and Managing Growth Chapter 20 Options and Corporate Finance Chapter 21 International Financial Management

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Fundamentals Of Corporate Finance
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October 31, 2025
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Written in
2025/2026
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TEST BANK
Fundamentals of Corporate Finance, 5th Edition
by Robert Parrino, David Kidwell, All Chapters 1 - 21




1

,2

, Chapter 1 The Financial Manager and the Firm

1) The financial manager is responsible for making decisions that are in the best interests of
the firm's owners.
Answer: TRUE Diff:
1
Learning Objective: LO 1
Bloomcode: Knowledge AACSB:
Analytic
IMA: FSA
AICPA: Process and Resource Management Perspectives

2) A patent is a productive asset for a technology-based
firm. Answer: TRUE
Diff: 1
Learning Objective: LO 1
Bloomcode: Knowledge AACSB:
Analytic
IMA: Business Economics
AICPA: Global and Industry Perspectives

3) Intangible assets generate most of a manufacturing firm's cash
flows. Answer: FALSE
Diff: 2
Learning Objective: LO 1
Bloomcode: Application AACSB:
Analytic
IMA: Corporate Finance
AICPA: Process and Resource Management Perspectives

4) The most fundamental way a business can grow in size is by reinvesting cash flows or
earnings. Answer: TRUE
Diff: 1
Learning Objective: LO 1
Bloomcode: Knowledge AACSB:
Analytic
IMA: FSA
AICPA: Process and Resource Management Perspectives




3

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