Finance: Applications and Theory
Author: Marcia Millon Cornett
6th Edition
,Table Of Contents
Part One: Introduction
Chapter 1: Introduction To Financial Management
Part Two: Financial Statements
Chapter 2: Reviewing Financial Statements
Chapter 3: Analyzing Financial Statements
Part Three: Valuing Of Future Cash Flows
Chapter 4: Time Value Of Money 1: Analyzing Single Cash Flows
Chapter 5: Time Value Of Money 2: Analyzing Annuity Cash Flows
Part Four: Valuing Of Bonds And Stocks
Chapter 6: Understanding Financial Markets And Institutions
Chapter 7: Valuing Bonds
Chapter 8: Valuing Stocks
Part Five: Risk And Return
Chapter 9: Characterizing Risk And Return
Chapter 10: Estimating Risk And Return
Part Six: Capital Budgeting
Chapter 11: Calculating The Cost Of Capital
Chapter 12: Estimating Cash Flows On Capital Budgeting Projects
Chapter 13: Weighing Net Present Value And Other Capital Budgeting
Part Seven: Working Capital Management And Financial Planning
Chapter 14: Working Capital Management And Policies
Chapter 15: Financial Planning And Forecasting
Part Eight: Capital Structure Issues
Chapter 16: Assessing Long-Term Debt, Equity, And Capital Structure
Chapter 17: Sharing Firm Wealth: Dividends, Share Repurchases, And Other Payouts
Chapter 18: Issuing Capital And The Investment Banking Process
Part Nine: Other Topics In Finance
Chapter 19: International Corporate Finance
Chapter 20: Mergers And Acquisitions And Financial Distress
,TEST BANK FOR
Finance Applications And Theory 6e Cornett
Chapter 1-20 Answers Are At The End Of Each Chapter
Chapter 1
Student Name:
1) Which Statements(S) Is/Are True For Successful Application Of Financial Theories?
A) The Economy Will Be More Productive.
B) Individual’s Wealth Will Grow.
C) The Economy Will Be More Productive And Individual's Wealth Will Grow.
D) None Of These Choices Are Correct.
2) Not All Cash A Company Generates Will Be Returned To The Investors. Which Of The
FollowingWill NOT Reduce The Amount Of Capital Returned To The Investors?
A) Retained Earnings
B) Taxes
C) Dividends
3) This Subarea Of Finance Involves Methods And Techniques To Make Appropriate
Decisions About What Kinds Of Securities To Own, Which Firms' Securities To Buy, And
How To Be Paid BackIn The Form That The Investor Wishes.
A) Real Markets
B) Investments
C) Financial Management
4) This Subarea Of Finance Looks At Firm Decisions In Acquiring And Utilizing Cash
Received FromInvestors Or From Retained Earnings.
A) Investments
B) Financial Management
C) Financial Institutions And Markets
, 5) Financial Management Involves Decisions About Which Of The Following?
A) Which Projects To Fund
B) How To Minimize Taxation
C) What Type Of Capital Should Be Raised
D) All Of These Choices Are Correct.
6) This Subarea Of Finance Helps Facilitate The Capital Flows Between Investors And Companies.
A) Investments
B) Financial Management
C) Treasury Management
D) Financial Institutions And Markets
7) This Subarea Of Finance Is Important For Adapting To The Global Economy.
A) Investments
B) Financial Management
C) International Finance
D) Financial Institutions And Markets
8) A Potential Future Negative Impact To Value And/Or Cash Flows Is Often Discussed In
Terms OfProbability Of Loss And The Expected Magnitude Of The Loss. This Is Called
A) Options.
B) Standard Deviation.
C) Coefficient Of Variation.
D) Risk.
9) This Is A Term To Describe Non-Physical Assets Like Stocks And Bonds That Get Their
Value FromFuture Cash Flows.
A) Investment
B) Financial Asset
C) Real Asset
D) Financial Markets