Corporate Finance Textbooks Quiz
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Questions and Answers

Which textbook covers the topic of 'Corporate Finance'?

  • Cases in Finance Third Edition
  • Fundamentals of Corporate Finance Ninth Edition (correct)
  • Principles of Corporate Finance Twelfth Edition
  • Finance: Applications and Theory Fourth Edition

Which textbook is authored by Brealey, Myers, and Marcus?

  • Principles of Corporate Finance Twelfth Edition
  • Financial Management Block, Hirt, and Danielsen
  • Finance: Applications and Theory Fourth Edition
  • Fundamentals of Corporate Finance Ninth Edition (correct)

Which textbook is part of 'The McGraw-Hill Education Series in Finance, Insurance, and Real Estate'?

  • Cases in Finance Third Edition
  • Finance: Applications and Theory Fourth Edition
  • Fundamentals of Corporate Finance Ninth Edition (correct)
  • Principles of Corporate Finance Twelfth Edition

Which textbook has the subtitle 'Managing for Corporate Value Creation'?

<p>Cases in Finance Third Edition (C)</p> Signup and view all the answers

Which textbook includes the authors Brooks, Bruner, Eades, and Schill?

<p>Cases in Finance Third Edition (C)</p> Signup and view all the answers

What strongly held principle united the authors when they decided to write a book?

<p>Corporate finance should be developed in terms of a few integrated, powerful ideas. (C)</p> Signup and view all the answers

What type of topics did the authors eliminate while writing their book on corporate finance?

<p>Topics that were purely theoretical. (A)</p> Signup and view all the answers

What is Professor Jordan's long-standing interest in?

<p>Applied and theoretical issues in corporate finance. (C)</p> Signup and view all the answers

Which association was Professor Jordan a past president of?

<p>Southern Finance Association. (A)</p> Signup and view all the answers

What did the authors believe was a better way to present corporate finance?

<p>In terms of a few integrated, powerful ideas. (D)</p> Signup and view all the answers

What aspect of corporate finance did the authors minimize the use of during the writing process?

<p>Purely theoretical issues. (B)</p> Signup and view all the answers

What is the formula for calculating Return on Equity (ROE) when total equity is taken from the beginning of the period?

<p>Net income divided by beginning total equity (A)</p> Signup and view all the answers

Why is ROE calculated differently depending on whether total equity is from the beginning or end of the period?

<p>It ensures accurate financial analysis (D)</p> Signup and view all the answers

How does gathering financial statements to calculate ratios differ from using websites like www.reuters.com?

<p>It can be time-consuming (B)</p> Signup and view all the answers

What is the significance of Home Depot having lower quick and current ratios than the industry?

<p>Home Depot may struggle to meet short-term obligations (C)</p> Signup and view all the answers

Why are ratios considered an important tool for examining a company’s performance?

<p>To provide insights into the company's financial health (C)</p> Signup and view all the answers

What purpose does using ratios serve in analyzing a company's performance compared to other methods?

<p>To quantify various aspects of a company's financial health (A)</p> Signup and view all the answers

What is the main focus of the text?

<p>Discussing bond market conventions and fixed income developments (D)</p> Signup and view all the answers

Which of the following is NOT mentioned as a new development in fixed income?

<p>Introduction of negative interest rates (A)</p> Signup and view all the answers

What is the purpose of the minicase 'Financing S&S Air's Expansion Plans with a Bond Issue'?

<p>To illustrate the process of selling bonds to the public (B)</p> Signup and view all the answers

Which of the following topics is NOT covered in the text?

<p>Calculation of bond prices and yields (B)</p> Signup and view all the answers

What is the purpose of the 'Bullock Gold Mining' minicase?

<p>To explore different capital budgeting techniques with non-standard cash flows (A)</p> Signup and view all the answers

What is the focus of Chapter 10 in the text?

<p>Project cash flow analysis (B)</p> Signup and view all the answers

What does the sustainable growth equation explicitly state?

<p>The need for increased assets to support rapid sales growth (B)</p> Signup and view all the answers

How do bankers primarily use the sustainable growth rate information?

<p>To determine the appropriate loan or investment products (C)</p> Signup and view all the answers

If a company's actual growth consistently exceeds its sustainable growth, what is likely to be management's primary concern?

<p>Securing financing for growth (C)</p> Signup and view all the answers

What does the text suggest about the relationship between sales growth and asset requirements?

<p>Rapid sales growth requires a proportional increase in assets (C)</p> Signup and view all the answers

What information do sophisticated computer software packages provide to bankers?

<p>Detailed analyses of the company's past financial performance (A)</p> Signup and view all the answers

If a company's sustainable growth consistently exceeds its actual growth, what is the likely management concern?

<p>Investing excess cash (B)</p> Signup and view all the answers

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