Test bank for Fundamentals of Corporate Finance 10th Canadian Edition by Ross Westerfield
12 views 0 purchase
Course
Fundamentals of Corporate Finance 10th
Institution
Fundamentals Of Corporate Finance 10th
Book
Fundamentals of Corporate Finance (12th Edition)
Test bank for Fundamentals of
Corporate Finance 10th Canadian
Edition by Ross Westerfield
Chapter 01
Introduction to Corporate Finance
True / False Questions
1. In capital budgeting, the financial manager tries to identify investment opportunities that
are worth more to the firm than they co...
Test Bank For Corporate Finance, 12th Edition By Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford Jordan. (All Chapters Covered) Updated Version 2024 -2024 Actual Questions with Correct...
SOLUTIONS MANUAL CORPORATE FINANCE ROSS, WESTERFIELD, JAFFE, AND JORDAN 12TH EDITION PREPARED BY: BRAD JORDAN UNIVERSITY OF KENTUCKY JOE SMOLIRA BELMONT UNIVERSITY
SOLUTIONS MANUAL CORPORATE FINANCE ROSS, WESTERFIELD, JAFFE, AND JORDAN 12TH EDITION PREPARED BY: BRAD JORDAN UNIVERSITY OF KENTUCKY JOE SMOLIRA BELMONT UNIVERSITY
All for this textbook (7)
Written for
Fundamentals of Corporate Finance 10th
All documents for this subject (2)
Seller
Follow
NursingSolutions
Content preview
lOMoAR cPSD| 3713
Test bank for Fundamentals of
Corporate Finance 10th Canadian
Edition by Ross Westerfield
Chapter 01
Introduction to Corporate Finance
True / False Questions
1. In capital budgeting, the financial manager tries to identify investment opportunities that
are worth more to the firm than they cost to acquire.
TRUE
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-01 The basic types of financial management decisions and the role of the financial manager.
Topic: 01-04 Financial Management Decisions
2. The size, timing and risk of cash flows are important when evaluating a capital budgeting
decision.
TRUE
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Medium
Learning Objective: 01-01 The basic types of financial management decisions and the role of the financial manager.
Topic: 01-04 Financial Management Decisions
3. A capital expenditure project becomes desirable when the project is worth more to the firm
than the cost to acquire it.
TRUE
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Medium
Learning Objective: 01-01 The basic types of financial management decisions and the role of the financial manager.
Topic: 01-04 Financial Management Decisions
,4. A capital expenditure project becomes desirable when the value of the cash flow generated
by the project exceeds the project's cost.
TRUE
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Medium
Learning Objective: 01-01 The basic types of financial management decisions and the role of the financial manager.
Topic: 01-04 Financial Management Decisions
5. Capital structure determines the least expensive sources of funds for the firm to borrow.
TRUE
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Medium
Learning Objective: 01-01 The basic types of financial management decisions and the role of the financial manager.
Topic: 01-04 Financial Management Decisions
6. Capital structure determines how much debt the firm should have in relation to its level of
equity.
TRUE
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Medium
Learning Objective: 01-01 The basic types of financial management decisions and the role of the financial manager.
Topic: 01-04 Financial Management Decisions
7. Capital structure determines the level of current assets that is required to maintain the firm's
operational level.
FALSE
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Medium
Learning Objective: 01-01 The basic types of financial management decisions and the role of the financial manager.
Topic: 01-04 Financial Management Decisions
1-2
,8. Capital structure determines how much risk is associated with the future cash flows of a
project.
FALSE
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Medium
Learning Objective: 01-01 The basic types of financial management decisions and the role of the financial manager.
Topic: 01-04 Financial Management Decisions
9. Determining when a supplier should be paid is a capital structure decision.
FALSE
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Medium
Learning Objective: 01-01 The basic types of financial management decisions and the role of the financial manager.
Topic: 01-04 Financial Management Decisions
10. Establishing the accounts receivable policies is a capital structure decision.
FALSE
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Medium
Learning Objective: 01-01 The basic types of financial management decisions and the role of the financial manager.
Topic: 01-04 Financial Management Decisions
11. Determining the amount of money to borrow to finance a 10-year project is a capital
structure decision.
TRUE
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Medium
Learning Objective: 01-01 The basic types of financial management decisions and the role of the financial manager.
Topic: 01-04 Financial Management Decisions
1-3
, 12. Deciding if a new project should be accepted is a working capital decision.
FALSE
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Medium
Learning Objective: 01-01 The basic types of financial management decisions and the role of the financial manager.
Topic: 01-04 Financial Management Decisions
13. When evaluating a project in which a firm might invest, the size but not the timing of the
cash flows is important.
FALSE
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-01 The basic types of financial management decisions and the role of the financial manager.
Topic: 01-04 Financial Management Decisions
14. Working capital management addresses the firm's appropriate level of inventory.
TRUE
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-01 The basic types of financial management decisions and the role of the financial manager.
Topic: 01-04 Financial Management Decisions
15. Common stockholders or limited partners can lose, at most, what they have invested in a
firm.
TRUE
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Medium
Learning Objective: 01-02 The financial implications of the different forms of business organization.
Topic: 01-07 Partnership
Topic: 01-08 Corporation
1-4
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller NursingSolutions. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $11.99. You're not tied to anything after your purchase.
