Fundamentals of Corporate Finance 4th Edition Parrino Test Bank
Test Bank for Fundamentals of Corporate Finance 4th Edition by Robert Parrino, David S. Kidwell, Thomas Bates, Stuart L. Gillan, ISBN: 1119371430, ISBN: 9781119371434
TABLE OF CONTENTS
PART 1: INTRODUCTION
1. The Financial Manager and the Firm
PART 2: FOUNDATIONS
2. The Financial System and the Level of Interest Rates
3. Financial Statements, Cash Flows, and Taxes
4. Analyzing Financial Statements
PART 3: VALUATION OF FUTURE CSAH FLOWS AND RISK
5. The Time Value of Money
6. Discounted Cash Flows and Valuation
7. Risk and Return
8. Bond Valuation and the Structure of Interest Rates
9. Stock Valuation
PART 4: CAPITAL BUDGETING DECISIONS
10. The Fundamentals of Capital Budgeting
11. Cash Flows and Capital Budgeting
12. Evaluating Project Economics
13. The Cost of Capital
PART 5: WORKING CAPITAL MANAGEMENT AND FINANCING DECISIONS
14. Working Capital Management
15. How Firms Raise Capital
16. Capital Structure Policy
17. Dividends, Stock Repurchases and Payout Policy
PART 6 BUSINESS FORMATION, VALUATION, AND FINANCIAL PLANNING
18. Business Formation, Growth, and Valuation
19. Financial Planning and Managing Growth
PART 7 OPTIONS IN CORPORATE FINANCE AND INTERNATIONAL DECISIONS
20. Options and Corporate Finance
21. International Financial Management
Chapter 1: The Financial Manager and the Firm
Format: True/False
Learning Objective: LO 1
Level of Difficulty: Easy
Bloomcode: Knowledge
AACSB: Analytic
IMA: FSA
AICPA: 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
Ans: 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
Ans: A
Format: True/False
Learning Objective: LO 1
Level of Difficulty: Medium
Bloomcode: Comprehension
AACSB: Analytic
IMA: Corporate Finance
AICPA: Resource Management
3. Intangible assets generate most of a manufacturing firm’s cash flows.
A) True
B) False
Ans: 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
Ans: A
Format: True/False
Learning Objective: LO 1
Level of Difficulty: Medium
Bloomcode: Comprehension
AACSB: Analytic
IMA: Corporate Finance
AICPA: Resource Management
5. A firm that goes bankrupt will always be liquidated
A) True
B) False
Ans: B
Format: True/False
Learning Objective: LO 1
Level of Difficulty: Easy
Bloomcode: Knowledge
AACSB: Analytic
IMA: Corporate Finance
AICPA: Resource Management
