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978-1285429649 Chapter 1
Principles of Finance 6e Chapter 1 Besley/Brigham © 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or […]
978-1285429649 Chapter 10 Part 1
Principles of Finance 6e Chapter 10 Besley/Brigham 10-1 CHAPTER 10 ANSWERS 10-1 The value of any asset is determined by computing the present value of the future cash flows htat the asset is expected to generate during its useful life. […]
978-1285429649 Chapter 10 Part 2
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website […]
978-1285429649 Chapter 11 Part 1
Principles of Finance 6e Chapter 11 Besley/Brigham 11-1 CHAPTER 11 ANSWERS 11-1 The statement is correct. Less risk means less variability of returns, which means a more peaked probability distribution than for a riskier investment. 11-2 a. The probability distribution […]
978-1285429649 Chapter 11 Part 2
Chapter 11 Principles of Finance 6e Besley/Brigham 11–12 The T-bills are risk-free in the default risk sense because the 8 percent return will be realized in all possible economic states. However, remember that this return is composed of the real […]
978-1285429649 Chapter 12 Part 1
Principles of Finance 5e Chapter 12 Besley/Brigham 12-1 CHAPTER 12 ANSWERS 12-1 This point is demonstrated in Table 12-1 and Figures 12-2 and 12-3 in the textbook. The marginal cost of capital is a weighted average of debt, preferred stock, […]
978-1285429649 Chapter 12 Part 2
Principles of Finance 5e Chapter 12 Besley/Brigham 12–15 c. Rate of return, r1: − =+ r 1 401,155$000,675$ 8 )r1( 1 Financial calculator solution: Input N = 8, PV = -675,000, PMT = […]
978-1285429649 Chapter 13 Part 1
Principles of Finance 6e Chapter 13 Besley/Brigham 13-1 CHAPTER 13 ANSWERS 13-1 Only cash can be spent or reinvested, and because accounting profits do not represent cash, they are of less fundamental importance than cash flows for investment analysis. Recall […]
978-1285429649 Chapter 13 Part 2
Principles of Finance 6e Chapter 13 Besley/Brigham 13–21 10% b. Recovery Depreciable Depreciation Depreciation Change in Year Percentage Basis Allowance, New Allowance, Old Depreciation 1 33% $80,000 $26,400 $10,000 $16,400 2 45% 80,000 36,000 10,000 26,000 3 15% 80,000 12,000 […]
978-1285429649 Chapter 13 Part 3
Chapter 13 Principles of Finance 6e Besley/Brigham © 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or […]
978-1285429649 Chapter 14 Part 1
Principles of Finance 6e Chapter 14 Besley/Brigham 4-1 CHAPTER 14 ANSWERS 14-1 If sales tend to fluctuate widely, then cash flows and the ability to service fixed charges also will vary. Consequently, there is a relatively large risk that the […]
978-1285429649 Chapter 14 Part 2
Chapter 14 Principles of Finance 6e Besley/Brigham 14–20 (3) In the graph given here, we plot stock price versus dividend policy (payout) under the dividend relevance theory and dividend irrelevance when investors prefer current dividends (GL) and when investors prefer […]
978-1285429649 Chapter 15 Part 1
Principles of Finance 6e Chapter 15 Besley/Brigham 15-1 CHAPTER 15 ANSWERS 15-1 A manufacturing firm will order and then receive the materials it needs to produce its product. Typically, this purchase is on a credit basis, so an account payable […]
978-1285429649 Chapter 15 Part 2
Chapter 15 Principles of Finance 6e Besley/Brigham 15–16 h. Marketable securities can be held as a substitute for cash balances and as a temporary investment. Temporary investments in marketable securities occur because: (1) the firm must finance seasonal or cyclical […]
978-1285429649 Chapter 16
Principles of Finance 6e Chapter 16 Besley/Brigham 16-1 CHAPTER 16 ANSWERS 16-1 The investment process includes: (a) defining/modifying investment objectives, such as to plan for retirement, supplement current income, shelter income, or achieve future goals; (b) defining risk attitude, or […]
978-1285429649 Chapter 17
Principles of Finance 6e Chapter 17 Besley/Brigham © 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or […]
978-1285429649 Chapter 2
Principles of Finance 6e Chapter 2 Besley/Brigham © 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or […]
978-1285429649 Chapter 3
Principles of Finance 6e Chapter 3 Besley/Brigham © 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or […]
978-1285429649 Chapter 4
Principles of Finance 6e Chapter 4 Besley/Brigham © 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or […]
978-1285429649 Chapter 5
Principles of Finance 6e Chapter 5 Besley/Brigham 5-1 CHAPTER 5 ANSWERS 5-1 The return associated with any investment is based on the change in the investor’s wealth. Any income (interest or dividend) received by the investor changes his or her […]
978-1285429649 Chapter 6
Principles of Finance 6e Chapter 6 Besley/Brigham © 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or […]
978-1285429649 Chapter 7 Part 1
Principles of Finance 6e Chapter 7 Besley/Brigham 7-1 CHAPTER 7 ANSWERS 7-1 The four financial statements contained in most annual reports are the balance sheet, income statement, statement of retained earnings, and statement of cash flows. 7-2 No, because the […]
978-1285429649 Chapter 7 Part 2
Principles of Finance 6e Chapter 7 Besley/Brigham © 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or […]
978-1285429649 Chapter 8 Part 1
Principles of Finance 6e Chapter 8 Besley/Brigham 8-1 CHAPTER 8 ANSWERS 8-1 Accounts payable, accrued wages, and accrued taxes increase spontaneously and proportionately with sales. Retained earnings increase, but not proportionately. 8-2 a. + b. – The firm needs less […]
978-1285429649 Chapter 8 Part 2
Chapter 8 Principles of Finance 6e Besley/Brigham 8-14 December January February Credit sales $160,000 $40,000 $60,000 Credit purchases 40,000 40,000 40,000 Cash Receipts: Receipts from sales $160,000 $40,000 Cash Disbursements: Payments for purchases 40,000 40,000 Salaries 4,800 4,800 Rent 2,000 […]
978-1285429649 Chapter 9 Part 1
Principles of Finance 6e Chapter 9 Besley/Brigham 9-1 CHAPTER 9 ANSWERS 9-1 The opportunity cost rate is the rate of interest one could earn on an alternative investment with a risk equal to the risk of the investment in question. […]
978-1285429649 Chapter 9 Part 2
Principles of Finance 6e Chapter 9 Besley/Brigham 9-21 9-32 With a calculator, enter N = 10 x 2 = 20, I/Y= 10/2 = 5, and PV = –10,000, and press PMT to get PMT = $802.43. Or 1 r 1 […]
978-1285429649 Chapter 9 Part 3
Principles of Finance 6e Chapter 9 9-35 00.331$)31000.3(100$ 10.0 1)10.1( 100$ 3 == − = Financial calculator solution: Input N = 3, I/Y = 10, PV = 0, and PMT = -100; compute […]
978-1285429649 Test Bank Chapter 1
Principles of Finance, 6e Besley/Brigham Chapter 01 Cengage Learning Testing, Powered by Cognero Page 1 © 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in […]
978-1285429649 Test Bank Chapter 10 Part 1
Principles of Finance, 6e Besley/Brigham Chapter 10 Cengage Learning Testing, Powered by Cognero Page 1 1. Assuming g will remain constant, the dividend yield is a good measure of the required return on a common stock under which of the […]
978-1285429649 Test Bank Chapter 10 Part 2
Principles of Finance, 6e Besley/Brigham Chapter 10 Cengage Learning Testing, Powered by Cognero Page 21 © 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in […]
978-1285429649 Test Bank Chapter 10 Part 3
Principles of Finance, 6e Besley/Brigham Chapter 10 Cengage Learning Testing, Powered by Cognero Page 41 © 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in […]
978-1285429649 Test Bank Chapter 10 Part 4
Principles of Finance, 6e Besley/Brigham Chapter 10 Cengage Learning Testing, Powered by Cognero Page 54 © 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in […]
978-1285429649 Test Bank Chapter 11 Part 1
Principles of Finance, 6e Besley/Brigham Chapter 11 Cengage Learning Testing, Powered by Cognero Page 1 © 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in […]
978-1285429649 Test Bank Chapter 11 Part 2
Principles of Finance, 6e Besley/Brigham Chapter 11 Cengage Learning Testing, Powered by Cognero Page 21 Step 3: Calculate new required return on stock rs = 5% + (13% − 5%)2 = 21%. Step 4: Calculate percentage change in return on […]
978-1285429649 Test Bank Chapter 11 Part 3
Principles of Finance, 6e Besley/Brigham Chapter 11 Cengage Learning Testing, Powered by Cognero Page 35 © 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in […]
978-1285429649 Test Bank Chapter 12 Part 1
Principles of Finance, 6e Besley/Brigham Chapter 12 Cengage Learning Testing, Powered by Cognero Page 1 © 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in […]
978-1285429649 Test Bank Chapter 12 Part 2
Principles of Finance, 6e Besley/Brigham Chapter 12 Cengage Learning Testing, Powered by Cognero Page 21 © 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in […]
978-1285429649 Test Bank Chapter 12 Part 3
Principles of Finance, 6e Besley/Brigham Chapter 12 Cengage Learning Testing, Powered by Cognero Page 36 © 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in […]
978-1285429649 Test Bank Chapter 13 Part 1
Principles of Finance, 6e Besley/Brigham Chapter 13 Cengage Learning Testing, Powered by Cognero Page 1 © 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in […]
978-1285429649 Test Bank Chapter 13 Part 2
Principles of Finance, 6e Besley/Brigham Chapter 13 Cengage Learning Testing, Powered by Cognero Page 21 a. 5.23 years b. 4.86 years c. 4.00 years d. 6.12 years e. 4.35 years ANSWER: b RATIONALE: Note: MACRS accelerated depreciation rates should be […]
978-1285429649 Test Bank Chapter 13 Part 3
Principles of Finance, 6e Besley/Brigham Chapter 13 Cengage Learning Testing, Powered by Cognero Page 41 e. None of the above statements is correct. ANSWER: c RATIONALE: Cash flow time lines: Project A Project B Project A: rAverage risk = 12%. […]
978-1285429649 Test Bank Chapter 13 Part 4
Principles of Finance, 6e Besley/Brigham Chapter 13 Cengage Learning Testing, Powered by Cognero Page 61 © 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in […]
978-1285429649 Test Bank Chapter 13 Part 5
Principles of Finance, 6e Besley/Brigham Chapter 13 Cengage Learning Testing, Powered by Cognero Page 81 TOPICS: Net Working Capital 140. With the current techniques available, estimating cash flows has become the easiest step in the analysis of a capital budgeting […]
978-1285429649 Test Bank Chapter 14 Part 1
Principles of Finance, 6e Besley/Brigham Chapter 14 Cengage Learning Testing, Powered by Cognero Page 1 © 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in […]
978-1285429649 Test Bank Chapter 14 Part 2
Principles of Finance, 6e Besley/Brigham Chapter 14 Cengage Learning Testing, Powered by Cognero Page 21 © 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in […]
978-1285429649 Test Bank Chapter 14 Part 3
Principles of Finance, 6e Besley/Brigham Chapter 14 Cengage Learning Testing, Powered by Cognero Page 35 Time Estimate-a – 5 min. TOPICS: MM, Taxes, and Capital Structure 79. According to MM, in a world without taxes, the optimal capital structure for […]
978-1285429649 Test Bank Chapter 15 Part 1
Principles of Finance, 6e Besley/Brigham Chapter 15 Cengage Learning Testing, Powered by Cognero Page 1 © 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in […]
978-1285429649 Test Bank Chapter 15 Part 2
Principles of Finance, 6e Besley/Brigham Chapter 15 Cengage Learning Testing, Powered by Cognero Page 21 © 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in […]
978-1285429649 Test Bank Chapter 15 Part 3
Principles of Finance, 6e Besley/Brigham Chapter 15 Cengage Learning Testing, Powered by Cognero Page 41 © 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in […]
978-1285429649 Test Bank Chapter 15 Part 4
Principles of Finance, 6e Besley/Brigham Chapter 15 Cengage Learning Testing, Powered by Cognero Page 55 © 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in […]
978-1285429649 Test Bank Chapter 16 Part 1
Principles of Finance, 6e Besley/Brigham Chapter 16 Cengage Learning Testing, Powered by Cognero Page 1 © 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in […]
978-1285429649 Test Bank Chapter 16 Part 2
Principles of Finance, 6e Besley/Brigham Chapter 16 Cengage Learning Testing, Powered by Cognero Page 21 © 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in […]
978-1285429649 Test Bank Chapter 17 Part 1
Principles of Finance, 6e Besley/Brigham Chapter 17 Cengage Learning Testing, Powered by Cognero Page 1 © 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in […]
978-1285429649 Test Bank Chapter 17 Part 2
Principles of Finance, 6e Besley/Brigham Chapter 17 Cengage Learning Testing, Powered by Cognero Page 21 © 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in […]
978-1285429649 Test Bank Chapter 17 Part 3
Principles of Finance, 6e Besley/Brigham Chapter 17 Cengage Learning Testing, Powered by Cognero Page 32 © 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in […]
978-1285429649 Test Bank Chapter 2 Part 1
Principles of Finance, 6e Besley/Brigham Chapter 02 Cengage Learning Testing, Powered by Cognero Page 1 1. Which of the following events would make it more likely that a company would choose to call its outstanding callable bonds? a. A reduction […]
978-1285429649 Test Bank Chapter 2 Part 2
Principles of Finance, 6e Besley/Brigham Chapter 02 Cengage Learning Testing, Powered by Cognero Page 21 © 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in […]
978-1285429649 Test Bank Chapter 3
Principles of Finance, 6e Besley/Brigham Chapter 03 Cengage Learning Testing, Powered by Cognero Page 1 © 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in […]
978-1285429649 Test Bank Chapter 4 Part 1
Principles of Finance, 6e Besley/Brigham Chapter 04 Cengage Learning Testing, Powered by Cognero Page 1 © 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in […]
978-1285429649 Test Bank Chapter 4 Part 2
Principles of Finance, 6e Besley/Brigham Chapter 04 Cengage Learning Testing, Powered by Cognero Page 18 DIFFICULTY: Moderate ACCREDITING STANDARDS: Blooms Taxonomy-2 – Application Business Program-3 – Analytic DISC-FIN-04 – International Financial Management Time Estimate-b – 10 min. TOPICS: Reserve Requirements […]
978-1285429649 Test Bank Chapter 5 Part 1
Principles of Finance, 6e Besley/Brigham Chapter 05 Cengage Learning Testing, Powered by Cognero Page 1 1. Which of the following statements is most correct? Other things held constant, a. the “liquidity preference theory” would generally lead to an upward sloping […]
978-1285429649 Test Bank Chapter 5 Part 2
Principles of Finance, 6e Besley/Brigham Chapter 05 Cengage Learning Testing, Powered by Cognero Page 15 29. Which of the following is not one of the fundamental factors that affect the cost of money? a. Production opportunities b. Time preferences for […]
978-1285429649 Test Bank Chapter 6 Part 1
Principles of Finance, 6e Besley/Brigham Chapter 06 Cengage Learning Testing, Powered by Cognero Page 1 © 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in […]
978-1285429649 Test Bank Chapter 6 Part 2
Principles of Finance, 6e Besley/Brigham Chapter 06 Cengage Learning Testing, Powered by Cognero Page 19 © 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in […]
978-1285429649 Test Bank Chapter 7 Part 1
Principles of Finance, 6e Besley/Brigham Chapter 07 Cengage Learning Testing, Powered by Cognero Page 1 © 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in […]
978-1285429649 Test Bank Chapter 7 Part 2
Principles of Finance, 6e Besley/Brigham Chapter 07 Cengage Learning Testing, Powered by Cognero Page 21 Subtractions (uses of cash): Increase in accounts receivable (50) Increase in inventories (35) Decrease in accounts payable (20) Net Cash Flows from Operations ($85) Cash […]
978-1285429649 Test Bank Chapter 7 Part 3
Principles of Finance, 6e Besley/Brigham Chapter 07 Cengage Learning Testing, Powered by Cognero Page 36 © 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in […]
978-1285429649 Test Bank Chapter 8 Part 1
Principles of Finance, 6e Besley/Brigham Chapter 08 Cengage Learning Testing, Powered by Cognero Page 1 1. The projected balance sheet method of forecasting is based on which of the following assumptions? a. All balance sheet accounts are tied directly to […]
978-1285429649 Test Bank Chapter 8 Part 2
Principles of Finance, 6e Besley/Brigham Chapter 08 Cengage Learning Testing, Powered by Cognero Page 21 © 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in […]
978-1285429649 Test Bank Chapter 8 Part 3
Principles of Finance, 6e Besley/Brigham Chapter 08 Cengage Learning Testing, Powered by Cognero Page 37 © 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in […]
978-1285429649 Test Bank Chapter 9 Part 1
Principles of Finance, 6e Besley/Brigham Chapter 09 Cengage Learning Testing, Powered by Cognero Page 1 © 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in […]
978-1285429649 Test Bank Chapter 9 Part 2
Principles of Finance, 6e Besley/Brigham Chapter 09 Cengage Learning Testing, Powered by Cognero Page 21 © 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in […]
978-1285429649 Test Bank Chapter 9 Part 3
Principles of Finance, 6e Besley/Brigham Chapter 09 Cengage Learning Testing, Powered by Cognero Page 41 © 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in […]
978-1285429649 Test Bank Chapter 9 Part 4
Principles of Finance, 6e Besley/Brigham Chapter 09 Cengage Learning Testing, Powered by Cognero Page 61 −$8,554.84 PV of Health care costs 1,082.76 PV of parents’ savings −$7,472.08 Lump sum government must set aside = 0 = 0 = −6,115.91 = […]