Test bank for Foundations of Finance 10th Edition by Arthur J. ISBN:9780134897264 | Complete Guide A+

Test Bank for Foundations of Finance, 10e
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(Keown/Martin/Petty) Latest & Updated
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2024 A+
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, Foundations of Finance, 10e (Keown/Martin/Petty)
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Latest &Updated A+ te te te



Chapter te1 t e An teIntroduction teto tethe teFoundations teof teFinancial teManagement


Learning teObjective te1.1




1) Financial temanagement tedeals tewith tethe temaintenance teand tecreation teof teeconomic tevalue
or tewealth. teAnswer: teTRUE
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Diff: te1 t e Page teRef: te3

Keywords: teFinancial teManagement teLearning teObj.: teL.O. te1.1

te AACSB: teReflective teThinking




2) Each tefinancial tedecision temade teby tea tecorporate temanager tecan tebe teevaluated teby teits
direct teimpact teon tethe tecorporation's testock teprice.
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Answer: teFALSE teDiff: te1 Page teRef: te4

Keywords: teGoal teof tethe teFirm teLearning teObj.: teL.O. te1.1 teAACSB: teReflective teThinking




3) The tefundamental tegoal teof tea tebusiness teis teto temaximize tethe teretained teearnings teavailable
to tethe tecorporation's teshareholders.
te




Answer: teFALSE teDiff: te1 Page teRef: te3

Keywords: teGoal teof tethe teFirm teLearning teObj.: teL.O. te1.1 teAACSB: teReflective teThinking

,4) Shareholder tewealth temaximization temeans temaximizing tethe teprice teof tethe teexisting
common testock. teAnswer: teTRUE
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Diff: te1 t e Page teRef: te3

Keywords: teShareholder teWealth, teGoal teof tethe teFirm teLearning teObj.: teL.O. te1.1

te AACSB: teReflective teThinking




5) It teis teimportant teto teevaluate tea tecorporate temanager's tefinancial tedecision teby temeasuring
the teeffect tethe tedecision
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should tehave teon tethe tecorporation's testock teprice teif teeverything teelse tewere teheld teconstant.
Answer: teTRUE
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Diff: te2 t e Page teRef: te4

Keywords: teGoal teof tethe teFirm, teMaximize teShareholder teWealth teLearning teObj.: teL.O. te1.1

te AACSB: teReflective teThinking




6) Corporate temanagers teshould teaccept teinvestment teprojects tethat temaximize teprofits tein tethe
short terun tebecause teof tethe tetime tevalue teof temoney.
te




Answer: teFALSE teDiff: te2 Page teRef: te4

Keywords: teGoal teof tethe teFirm, teProfits, teTime teValue teof teMoney teLearning teObj.: teL.O. te1.1

te AACSB: teReflective teThinking

, 7) The tegoal teof tethe tefirm's tefinancial temanagers teshould tebe tethe temaximization teof tethe tetotal
value teof tethe tefirm's testock.
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Answer: teTRUE teDiff: te1 Page teRef: te3

Keywords: teGoal teof tethe teFirm teLearning teObj.: teL.O. te1.1 teAACSB: teReflective teThinking




8) The tepayment teof tea tedividend teto tecurrent teshareholders tewill tehave teno teimpact teon tea
corporation's teshare teprice tebecause tethe tecash tepaid teis tenot teavailable teto tefuture tepotential
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te shareholders tewho temay tewant teto tebuy tethe tecorporation's testock.




Answer: teFALSE teDiff: te1 Page teRef: te4

Keywords: teGoal teof tethe teFirm teLearning teObj.: teL.O. te1.1 teAACSB: teReflective teThinking




9) One teproblem tewith temaximization teof teshareholder tewealth teas tea tegoal teis tethat teit teignores
te risk tetaken teby tethe tefirm's tefinancial tedecisions.

Answer: teFALSE teDiff: te1 Page teRef: te4

Keywords: teGoal teof tethe teFirm teLearning teObj.: teL.O. te1.1 teAACSB: teReflective teThinking




10) The tegoal teof teprofit temaximization teignores tethe terisk teof tefinancial tedecisions. teAnswer: teFALSE

Diff: te1 tePage teRef: te4 teKeywords: teGoal teof tethe teFirm teLearning teObj.: teL.O. te1.1 teAACSB: teReflective
te Thinking