Test Bank For
FUNDAMENTALS OF CORPORATE FINANCE 4TH EDITION
BY ROBERT PARRINO (AUTHOR), THOMAS BATES (AUTHOR), STUART L. GILLAN (AUTHOR), & 1 MORE
COMPLETE FROM CHAPTER 1-21
,Table Of Contents
Chapter 1: The Financial Manager And The Firm ..................................................................................... 3
Chapter 2: The Financial System And The Level Of Interest Rates ......................................................... 36
Chapter 3: The Financial System And The Level Of Interest Rates ......................................................... 63
Chapter 4: Analyzing Financial Statements........................................................................................... 104
Chapter 5: The Time Value Of Money................................................................................................... 148
Chapter 6: Discounted Cash Flows And Valuation ................................................................................ 207
Chapter 07: Risk And Return ................................................................................................................. 264
Chapter 8: Bond Valuation And The Structure Of Interest Rates ......................................................... 309
Chapter 9: Stock Valuation ................................................................................................................... 364
Chapter 10: The Fundamentals Of Capital Budgeting .......................................................................... 423
Chapter 11: Cash Flows And Capital Budgeting .................................................................................... 476
Chapter 12: Evaluating Project Economics ........................................................................................... 527
Chapter 13: The Cost Of Capital ............................................................................................................ 577
Chapter 14: Working Capital Management .......................................................................................... 624
Chapter 15 How Firms Raise Capital ..................................................................................................... 667
Chapter: 16 Capital Structure Policy ..................................................................................................... 710
Chapter 17: Dividends, Stock Repurchases, And Payout Policy ............................................................ 757
Chapter 18: Business Formation, Growth, And Valuation .................................................................... 804
Chapter 19: Financial Planning And Managing Growth ........................................................................ 848
Chapter 20: Options And Corporate Finance ........................................................................................ 896
Chapter 21: International Financial Management................................................................................ 955
,Chapter 1: The Financial Manager And The Firm
Format: True/False Learning Objective: Lo 1 Level Of Difficulty: Easy
Bloomcode: Knowledge Arcs: Analytic
Imam: Fast
Apical: Resource Management
1. The Financial Manager Is Responsible For Making Decisions That Are In The Best Interests Of The
Firm's Owners.
A) True
B) False
ANSWER:> A
Format: True/False Learning Objective: Lo 1 Level Of Difficulty: Easy
Bloomcode: Knowledge Aacsb: Analytic
Ima: Business Economics
Aicpa: Industry/Sector Perspective
2. A Patent Is A Productive Asset For A Technology-Based Firm.
A) True
B) False
ANSWER:> A
Format: True/False Learning Objective: Lo 1 Level Of Difficulty: Medium
Bloomcode: Comprehension
Arcs: Analytic
Imam: Corporate Finance
Aicpa: Resource Management
, 3. Intangible Assets Generate Most Of A Manufacturing Firm's Cash Flows.
A) True
B) False
ANSWER:> B
Format: True/False Learning Objective: Lo 1 Level Of Difficulty: Easy Bloomcode: Knowledge
Aacsb: Analytic Ima: Fsa
Aicpa: Resource Management
4. The Most Fundamental Way That A Business Can Grow In Size Is The Reinvestment Of Cash
Flows Or Earnings.
A) True
B) False
ANSWER:> A
Format: True/False Learning Objective: Lo 1 Level Of Difficulty: Medium Bloomcode: Comprehension
Aacsb: Analytic
Ima: Corporate Finance Aicpa: Resource Management
5. When A Firm Goes Bankrupt, It Will Always Be Liquidated.
A) True
B) False
ANSWER:> B
Format: True/False Learning Objective: Lo 1 Level Of Difficulty: Easy
Bloomcode: Knowledge
Aacsb: Analytic
FUNDAMENTALS OF CORPORATE FINANCE 4TH EDITION
BY ROBERT PARRINO (AUTHOR), THOMAS BATES (AUTHOR), STUART L. GILLAN (AUTHOR), & 1 MORE
COMPLETE FROM CHAPTER 1-21
,Table Of Contents
Chapter 1: The Financial Manager And The Firm ..................................................................................... 3
Chapter 2: The Financial System And The Level Of Interest Rates ......................................................... 36
Chapter 3: The Financial System And The Level Of Interest Rates ......................................................... 63
Chapter 4: Analyzing Financial Statements........................................................................................... 104
Chapter 5: The Time Value Of Money................................................................................................... 148
Chapter 6: Discounted Cash Flows And Valuation ................................................................................ 207
Chapter 07: Risk And Return ................................................................................................................. 264
Chapter 8: Bond Valuation And The Structure Of Interest Rates ......................................................... 309
Chapter 9: Stock Valuation ................................................................................................................... 364
Chapter 10: The Fundamentals Of Capital Budgeting .......................................................................... 423
Chapter 11: Cash Flows And Capital Budgeting .................................................................................... 476
Chapter 12: Evaluating Project Economics ........................................................................................... 527
Chapter 13: The Cost Of Capital ............................................................................................................ 577
Chapter 14: Working Capital Management .......................................................................................... 624
Chapter 15 How Firms Raise Capital ..................................................................................................... 667
Chapter: 16 Capital Structure Policy ..................................................................................................... 710
Chapter 17: Dividends, Stock Repurchases, And Payout Policy ............................................................ 757
Chapter 18: Business Formation, Growth, And Valuation .................................................................... 804
Chapter 19: Financial Planning And Managing Growth ........................................................................ 848
Chapter 20: Options And Corporate Finance ........................................................................................ 896
Chapter 21: International Financial Management................................................................................ 955
,Chapter 1: The Financial Manager And The Firm
Format: True/False Learning Objective: Lo 1 Level Of Difficulty: Easy
Bloomcode: Knowledge Arcs: Analytic
Imam: Fast
Apical: Resource Management
1. The Financial Manager Is Responsible For Making Decisions That Are In The Best Interests Of The
Firm's Owners.
A) True
B) False
ANSWER:> A
Format: True/False Learning Objective: Lo 1 Level Of Difficulty: Easy
Bloomcode: Knowledge Aacsb: Analytic
Ima: Business Economics
Aicpa: Industry/Sector Perspective
2. A Patent Is A Productive Asset For A Technology-Based Firm.
A) True
B) False
ANSWER:> A
Format: True/False Learning Objective: Lo 1 Level Of Difficulty: Medium
Bloomcode: Comprehension
Arcs: Analytic
Imam: Corporate Finance
Aicpa: Resource Management
, 3. Intangible Assets Generate Most Of A Manufacturing Firm's Cash Flows.
A) True
B) False
ANSWER:> B
Format: True/False Learning Objective: Lo 1 Level Of Difficulty: Easy Bloomcode: Knowledge
Aacsb: Analytic Ima: Fsa
Aicpa: Resource Management
4. The Most Fundamental Way That A Business Can Grow In Size Is The Reinvestment Of Cash
Flows Or Earnings.
A) True
B) False
ANSWER:> A
Format: True/False Learning Objective: Lo 1 Level Of Difficulty: Medium Bloomcode: Comprehension
Aacsb: Analytic
Ima: Corporate Finance Aicpa: Resource Management
5. When A Firm Goes Bankrupt, It Will Always Be Liquidated.
A) True
B) False
ANSWER:> B
Format: True/False Learning Objective: Lo 1 Level Of Difficulty: Easy
Bloomcode: Knowledge
Aacsb: Analytic
