Quiz Ch 01 – T/F Defining Successful Investments
Fundamentals of Corporate Finance
Brealey, Myers, and Marcus
10th Edition
True or false: A successful investment raises the firm’s value.
True or false: A successful investment raises the firm’s value.
True or false: Delta’s $1.0 billion bond issuance is a financing decision.
True or false: Financial analysts are responsible for overseeing the risk associated with investment projects and financing decisions.
True or false: The primary responsibility of a financial manager is to make sound investment and financing decisions.
True or false: The $3.6 billion spent by GlaxoSmithKline on researching and developing new drugs is a capital budgeting decision, rather than a financing decision.
True or false: Intangible assets can be considered real assets.
True or false: Both corporations and sole proprietors exhibit a distinct characteristic: the separation of ownership from management.
True or false: Maximizing profits is synonymous with maximizing the firm’s value.
True or false: A project is financially attractive when its value is lower than the required investment.
True or false: Shareholders embrace elevated short-term profits, even at the expense of long-term gains.