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
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
