Multiple Choice Questions

These multiple choice quizzes accompany each chapter in Corporate Finance: theory and practice. For each question click on the letter which corresponds with the correct answer and your score will be calculated for each quiz as you work through it. If you get an answer wrong an explanation is provided as part of the feedback for the question either in the form of workings, a brief explanation, or (where a fuller explanation is required) a page reference to Corporate Finance.

PART 1 – INTRODUCTION
1 Financial decision making
2 Decision objectives

PART 2 – INVESTMENT DECISIONS
3 Traditional methods of investment appraisal
4 Investment–consumption decision model
5 The discounted cash flow approach
6 Net present value and internal rate of return
7 Project cash flows
8 Capital rationing

PART 3 – RISK ANALYSIS
9 Simple risk techniques
10 Risk and return
11 Portfolio theory
12 The capital asset pricing model
13 Option valuation
14 Interest rate risk

PART 4 – FINANCE DECISIONS
15 Financial markets
16 The cost of capital
17 Weighted average cost of capital
18 Capital structure in a simple world
19 Capital structure in a complex world
20 Capital structure in practice (there is no quiz for this chapter)
21 Investment and financing interactions
22 The dividend decision

PART 5 – MERGERS AND ACQUISITIONS
23 Acquisition decisions
24 Company valuation

PART 6 – INTERNATIONAL ISSUES
25 Foreign exchange
26 Foreign exchange hedging
27 Foreign direct investment