18th Edition by Stanley Block, Geoffrey Hirt, Bartley
Danielsen| Verified Chapter's 1 – 21
, TABLE OF CONTENTS ge ge
PART 1 INTRODUCTION ge ge
1 The Goals and Activities of Financial Management PART 2 FINANCIAL ANALYSIS A
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ND PLANNING ge
2 Review of Accounting ge ge g e
3 Financial Analysis
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4 Financial Forecasting ge
5 Operating and Financial Leverage ge ge ge
PART 3 WORKING CAPITAL MANAGEMENT ge ge ge ge
6 Working Capital and the Financing Decision 7 ge ge ge ge ge g e ge
Current Asset Management ge ge
8 Sources of Short-Term Financing ge ge ge
PART 4 THE CAPITAL BUDGETING PROCESS ge ge ge ge ge
9 The Time Value of Money ge ge ge ge
10 Valuation and Rates of Return 11 ge ge ge ge g e g
e Cost of Capital ge ge
12 The Capital Budgeting Decision 13
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Risk and Capital Budgeting PART 5 L
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ONG-TERM FINANCING ge
14 Capital Markets ge
15 Investment Banking ge
16 Long-
Term Debt and Lease Financing 17 Common an
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d Preferred Stock Financing 18 Dividend Policy
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ge and Retained Earnings 19 Convertibles, Warra
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nts, and Derivatives ge ge
PART 6 EXPANDING THE PERSPECTIVE OF CORPORATE FINANCE
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20 External Growth through Mergers 21 Int
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ernational Financial Management ge ge
,Foundations of Financial Management, 18e (Block) ge ge ge ge ge
Chapter 1 The Goals and Activities of Financial Management
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1) As finance emerged as a new field, much emphasis was placed on mergers and acquisi
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tions.
Answer: TRUE Diffic ge g e
ulty:1 Easyge ge
Topic: Introduction to corporate finance
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Learning Objective: 01- ge geg e
01The field of finance integrates concepts from economics, accounting,and a number of other are
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as.
Bloom's: Remember geg e g e
AACSB:
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Thinking
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2) Inflation is assumed to be atemporary problem that does not affect financial decisions. Answe
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r: FALSE
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Difficulty: 1 Easy ge ge
Topic: Financial management decisions
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Learning Objective: 01- ge geg e
01The field of finance integrates concepts from economics, accounting,and a number of other are
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Bloom's: Remember geg e g e
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3) Financial capital is composed of long- ge ge ge ge ge
term plant and equipment, as well as other tangibleinvestments.
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Answer: FALSE Diffic ge g e
ulty:1 Easyge ge
Topic: Introduction to corporate finance
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Learning Objective: 01- ge geg e
01The field of finance integrates concepts from economics, accounting,and a number of other are
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as.
Bloom's: Remember geg e g e
AACSB: Reflective
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4) Real capital is composed of long-
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term plant and equipment. AACSB: Reflective
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Accessibility: KeyboardNavigation ge ge
5) During the 1930s, financial practice revolved around such topics as the preservation of capital,
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maintenance of liquidity, the reorganization of financially troubled corporations, and bankruptc
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y.
Answer: TRUE Diffic ge g e
ulty:1 Easy
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Topic: Introduction to corporate finance
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Learning Objective: 01- ge geg e
01The field of finance integrates concepts from economics, accounting,and a number of other are
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as.
Bloom's: Remember geg e g e
AACSB:
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6) Inthe mid 1950s, finance began to change to amore analytical, decision-
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oriented approach. g e
Answer: TRUE Diffic ge g e
ulty:1 Easy
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Topic: Introduction to corporate finance
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Learning Objective: 01- ge geg e
01The field of finance integrates concepts from economics, accounting,and a number of other are
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as.
Bloom's: Remember geg e g e
AACSB:
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7) Recently, the emphasis of financial management has been on the relationship between risk an
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dreturn.
Answer: TRUE Diffic ge g e
ulty:1 Easy
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Topic: Introduction to corporate finance
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