Test bank for Fundamentals of Corporate Finance 10th Canadian Edition by Ross Westerfield Updated!!!

lOMoAR cPSD| 3713065




Test bank
for Fundamentals of Corporate Finance 10th Canadian

Edition by Ross Westerfield Updated!!!




p

, lOMoAR cPSD| 3713065




Chapter 01 - Introduction to Corporate
x x x x x

Finance
x
Chapter
01Introduction to Corporate
x x x x



Finance
x




True / False Questions
x x x




1. In capital budgeting, the financial manager tries to identify investment opportunities
x x x x x x x x x x


thatare worth more to the firm than they cost to acquire.
x x x x x x x x x x x x


TRUE


Accessibility: xKeyboard
xNavigationxBlooms: xRemember

Difficulty: xEasy
Learning xObjective: x01-01 xThe xbasic xtypes xof xfinancial xmanagement xdecisions xand xthe xrole xof xthe xfinancial
xmanager.xTopic: x01-04 xFinancial xManagement xDecisions




2. The size, timing and risk of cash flows are important when evaluating a capital
x x x x x x x x x x x x x


budgetingdecision.
x x


TRUE


Accessibility: xKeyboard
xNavigationxBlooms: xRemember

Difficulty: xMedium
Learning xObjective: x01-01 xThe xbasic xtypes xof xfinancial xmanagement xdecisions xand xthe xrole xof xthe xfinancial
xmanager.xTopic: x01-04 xFinancial xManagement xDecisions




3. A capital expenditure project becomes desirable when the project is worth more to the
x x x x x x x x x x x x x


firmthan the cost to acquire it.
x x x x x x x


TRUE


Accessibility: xKeyboard
xNavigationxBlooms: xRemember

Difficulty: xMedium
Learning xObjective: x01-01 xThe xbasic xtypes xof xfinancial xmanagement xdecisions xand xthe xrole xof xthe xfinancial
xmanager.xTopic: x01-04 xFinancial xManagement xDecisions




Test bank for Fundamentals of Corporate Finance
x x x x x x




10thCanadian Edition by Ross Westerfield
x x x x x x

, lOMoAR cPSD| 3713065




Chapter 01 - Introduction to Corporate
x x x x x

Finance
x



4. A capital expenditure project becomes desirable when the value of the cash flow
x x x x x x x x x x x x


generatedby the project exceeds the project's cost.
x x x x x x x x


TRUE


Accessibility: xKeyboard
xNavigationxBlooms: xRemember

Difficulty: xMedium
Learning xObjective: x01-01 xThe xbasic xtypes xof xfinancial xmanagement xdecisions xand xthe xrole xof xthe xfinancial
xmanager.xTopic: x01-04 xFinancial xManagement xDecisions




5. Capital structure determines the least expensive sources of funds for the firm to borrow.
x x x x x x x x x x x x x


TRUE


Accessibility: xKeyboard
xNavigationxBlooms: xRemember

Difficulty: xMedium
Learning xObjective: x01-01 xThe xbasic xtypes xof xfinancial xmanagement xdecisions xand xthe xrole xof xthe xfinancial
xmanager.xTopic: x01-04 xFinancial xManagement xDecisions




6. Capital structure determines how much debt the firm should have in relation to its level
x x x x x x x x x x x x x x


ofequity.
x x


TRUE


Accessibility: xKeyboard
xNavigationxBlooms: xRemember

Difficulty: xMedium
Learning xObjective: x01-01 xThe xbasic xtypes xof xfinancial xmanagement xdecisions xand xthe xrole xof xthe xfinancial
xmanager.xTopic: x01-04 xFinancial xManagement xDecisions




7. Capital structure determines the level of current assets that is required to maintain the
x x x x x x x x x x x x x


firm'soperational level.
x x x


FALSE


Accessibility: xKeyboard
xNavigationxBlooms: xRemember

Difficulty: xMedium
Learning xObjective: x01-01 xThe xbasic xtypes xof xfinancial xmanagement xdecisions xand xthe xrole xof xthe xfinancial
xmanager.xTopic: x01-04 xFinancial xManagement xDecisions




Test bank for Fundamentals of Corporate Finance
x x x x x x




10thCanadian Edition by Ross Westerfield
x x x x x x

, lOMoAR cPSD| 3713065




Chapter 01 - Introduction to Corporate
x x x x x

Finance
x




1-2




Test bank for Fundamentals of Corporate Finance
x x x x x x




10thCanadian Edition by Ross Westerfield
x x x x x x