Test Bank for M Finance 4th Edition By Cornett

Chapter 1 Introduction to Financial Management 1) The increase in oil production in the United States characterizes which of the following key financial concepts presented in this book? A) the Rule of 72 B) time value of money C) risk and return D) capital budgeting 2) Which of the following is not an impact of the slowdown occurring in China’s economy? A) lower demand in materials such as steel, iron ore, and copper B) real estate market declining in Sydney, Australia C) money going out of Manhattan, New York D) falling community prices 3) Not all cash a company generates will be returned to the investors. Which of the following will NOT reduce the amount of capital returned to the investors? A) retained earnings B) taxes C) dividends 4) 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 back in the form that the investor wishes. A) real markets B) investments C) financial management