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Foundations of Finance: The Logic and Practice of Financial Management
Author: Arthur J. Keown
10th Edition
,TABLE OF CONTENT
PART 1: THE SCOPE AND ENVIRONMENT OF FINANCIAL MANAGEMENT
1. An Introduction To The Foundations Of Financial Management
2. The Financial Markets And Interest Rates
3. Understanding Financial Statements And Cash Flows
4. Evaluating A Firm's Financial Performance
PART 2: THE VALUATION OF FINANCIAL ASSETS
5. The Time Value Of Money
6. The Meaning And Measurement Of Risk And Return
7. The Valuation And Characteristics Of Bonds
8. The Valuation And Characteristics Of Stock
9. The Cost Of Capital
PART 3: INVESTMENT IN LONG-TERM ASSETS
10. Capital-Budgeting Techniques And Practice
11. Cash Flows And Other Topics In Capital Budgeting
PART 4: CAPITAL STRUCTURE AND DIVIDEND POLICY
12. Determining The Financing Mix
13. Dividend Policy And Internal Financing
PART 5: WORKING-CAPITAL MANAGEMENT AND INTERNATIONAL BUSINESS FINANCE
14. Short-Term Financial Planning
15. Working-Capital Management
16. International Business Finance
17. Cash, Receivables, And Inventory Management
,Foundations Of Finance, 10e (Keown/Martin/Petty)
Chapter 1 An Introduction To The Foundations Of Financial Management
Learning Objective 1.1
1) Financial Management Deals With The Maintenance And Creation Of Economic Value Or Wealth.
Answer: TRUE
Diff: 1 Page Ref: 3
Keywords: Financial Management
Learning Obj.: L.O. 1.1
AACSB: Reflective Thinking
2) Each Financial Decision Made By A Corporate Manager Can Be Evaluated By Its Direct Impact On
The Corporation's Stock Price.
Answer: FALSE
Diff: 1 Page Ref: 4
Keywords: Goal Of The Firm
Learning Obj.: L.O. 1.1
AACSB: Reflective Thinking
3) The Fundamental Goal Of A Business Is To Maximize The Retained Earnings Available To The
Corporation's Shareholders.
Answer: FALSE
Diff: 1 Page Ref: 3
Keywords: Goal Of The Firm
Learning Obj.: L.O. 1.1
AACSB: Reflective Thinking
4) Shareholder Wealth Maximization Means Maximizing The Price Of The Existing Common Stock.
Answer: TRUE
Diff: 1 Page Ref: 3
, Keywords: Shareholder Wealth, Goal Of The Firm
Learning Obj.: L.O. 1.1
AACSB: Reflective Thinking
5) It Is Important To Evaluate A Corporate Manager's Financial Decision By Measuring The Effect The
Decision Should Have On The Corporation's Stock Price If Everything Else Were Held Constant.
Answer: TRUE
Diff: 2 Page Ref: 4
Keywords: Goal Of The Firm, Maximize Shareholder Wealth
Learning Obj.: L.O. 1.1
AACSB: Reflective Thinking
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