TEST BANK
Corporate Finance: Core Principles and Applications | 7th
Edition
By Stephen A. Ross, Randolph W. Westerfield
TE
ST
SO
LU
TI
O
N
,Table of Content
PART ONE: OVERVIEW
Chapter One: Introduction to Corporate Finance
Chapter Two: Financial Statements and Cash Flow
Chapter Three: Financial Statements Analysis and Financial Models
PART TWO: VALUATION AND CAPITAL BUDGETING
Chapter Four: Discounted Cash Flow Valuation
TE
Chapter Five: Interest Rates and Bond Valuation
Chapter Six: Stock Valuation
Chapter Seven: Net Present Value and Other Investment Rules
Chapter Eight: Making Capital Investment Decisions
ST
Chapter Nine: Risk Analysis, Real Options, and Capital Budgeting
PART THREE: RISK AND RETURN
Chapter Ten: Risk and Return: Lessons from Market History
SO
Chapter Eleven: Return and Risk: The Capital Asset Pricing Model (CAPM)
Chapter Twelve: Risk, Cost of Capital, and Valuation
PART FOUR: CAPITAL STRUCTURE AND DIVIDEND POLICY
Chapter Thirteen: Efficient Capital Markets and Behavioral Challenges
LU
Chapter Fourteen: Capital Structure: Basic Concepts
Chapter Fifteen: Capital Structure: Limits to the Use of Debt
Chapter Sixteen: Dividends and Other Payouts
TI
PART FIVE: SPECIAL TOPICS
Chapter Seventeen: Options and Corporate Finance
O
Chapter Eighteen: Short-Term Finance and Planning
Chapter Nineteen: Raising Capital
N
Chapter Twenty: International Corporate Finance
Chapter Twenty-One: Mergers and Acquisitions (web only)
APPENDIXES
A: Mathematical Tables
B: Solutions to Selected End-of-Chapter Problems
C: Using the HP 10B and TI BA II Plus FinancialCalculators
D: Key Equations
,Student name:__________
MULTIPLE CHOICE - Choose the one alternative that best completes the statement or
answers the question.
Which one of the following items is an intangible asset?
A building
Accounts receivable
TE
Inventory
A loan from a creditor
A patent
ST
Current assets include
inventory and cash.
SO
cash and buildings.
inventory and machinery.
equipment and cash.
buildings and inventory.
LU
Short-term finance
ensures sufficient equipment is available to produce the desired amount of product.
TI
ensures that long-term debt is acquired at the lowest possible cost.
ensures that dividends are paid to all stockholders on an annual basis.
O
balances the amount of company debt with the amount of available equity.
is concerned with managing net working capital.
N
Which one of the following is a capital budgeting decision?
Deciding whether to build a new distribution center
Determining how quickly to pay their accounts payable
Version 1 1
, Determining whether to use short- or long-term liabilities
Deciding how many shares of stock to repurchase
Determining how much cash to keep on hand
The managers in a firm have decided to move the company's headquarters from a rented space to
a new building that the company will purchase. This is an example of
TE
a net working capital decision.
a capital budgeting decision.
a short-term financing decision.
ST
a capital structure decision.
a cash flow decision.
SO
Which one of the following actions involves a net working capital decision?
Deciding whether to build an apartment building
Negotiating whether to lease or buy a new store location
LU
Determining whether to issue debt or equity to pay for the firm's expansion
Deciding how much inventory to keep on hand
Determining whether to replace a fleet of vehicles
TI
The process of planning and managing a firm's long-term investments is referred to as
capital budgeting.
O
agency cost analysis.
N
financial depreciation.
working capital management.
capital structure.
Capital structure decisions involve
Version 1 2
Corporate Finance: Core Principles and Applications | 7th
Edition
By Stephen A. Ross, Randolph W. Westerfield
TE
ST
SO
LU
TI
O
N
,Table of Content
PART ONE: OVERVIEW
Chapter One: Introduction to Corporate Finance
Chapter Two: Financial Statements and Cash Flow
Chapter Three: Financial Statements Analysis and Financial Models
PART TWO: VALUATION AND CAPITAL BUDGETING
Chapter Four: Discounted Cash Flow Valuation
TE
Chapter Five: Interest Rates and Bond Valuation
Chapter Six: Stock Valuation
Chapter Seven: Net Present Value and Other Investment Rules
Chapter Eight: Making Capital Investment Decisions
ST
Chapter Nine: Risk Analysis, Real Options, and Capital Budgeting
PART THREE: RISK AND RETURN
Chapter Ten: Risk and Return: Lessons from Market History
SO
Chapter Eleven: Return and Risk: The Capital Asset Pricing Model (CAPM)
Chapter Twelve: Risk, Cost of Capital, and Valuation
PART FOUR: CAPITAL STRUCTURE AND DIVIDEND POLICY
Chapter Thirteen: Efficient Capital Markets and Behavioral Challenges
LU
Chapter Fourteen: Capital Structure: Basic Concepts
Chapter Fifteen: Capital Structure: Limits to the Use of Debt
Chapter Sixteen: Dividends and Other Payouts
TI
PART FIVE: SPECIAL TOPICS
Chapter Seventeen: Options and Corporate Finance
O
Chapter Eighteen: Short-Term Finance and Planning
Chapter Nineteen: Raising Capital
N
Chapter Twenty: International Corporate Finance
Chapter Twenty-One: Mergers and Acquisitions (web only)
APPENDIXES
A: Mathematical Tables
B: Solutions to Selected End-of-Chapter Problems
C: Using the HP 10B and TI BA II Plus FinancialCalculators
D: Key Equations
,Student name:__________
MULTIPLE CHOICE - Choose the one alternative that best completes the statement or
answers the question.
Which one of the following items is an intangible asset?
A building
Accounts receivable
TE
Inventory
A loan from a creditor
A patent
ST
Current assets include
inventory and cash.
SO
cash and buildings.
inventory and machinery.
equipment and cash.
buildings and inventory.
LU
Short-term finance
ensures sufficient equipment is available to produce the desired amount of product.
TI
ensures that long-term debt is acquired at the lowest possible cost.
ensures that dividends are paid to all stockholders on an annual basis.
O
balances the amount of company debt with the amount of available equity.
is concerned with managing net working capital.
N
Which one of the following is a capital budgeting decision?
Deciding whether to build a new distribution center
Determining how quickly to pay their accounts payable
Version 1 1
, Determining whether to use short- or long-term liabilities
Deciding how many shares of stock to repurchase
Determining how much cash to keep on hand
The managers in a firm have decided to move the company's headquarters from a rented space to
a new building that the company will purchase. This is an example of
TE
a net working capital decision.
a capital budgeting decision.
a short-term financing decision.
ST
a capital structure decision.
a cash flow decision.
SO
Which one of the following actions involves a net working capital decision?
Deciding whether to build an apartment building
Negotiating whether to lease or buy a new store location
LU
Determining whether to issue debt or equity to pay for the firm's expansion
Deciding how much inventory to keep on hand
Determining whether to replace a fleet of vehicles
TI
The process of planning and managing a firm's long-term investments is referred to as
capital budgeting.
O
agency cost analysis.
N
financial depreciation.
working capital management.
capital structure.
Capital structure decisions involve
Version 1 2
