The difficulty in a first corporate finance course is rarely any single calculation; it is that the course keeps asking which calculation the situation calls for. Fundamentals of Corporate Finance, Ninth Canadian Edition by Ross moves from discounting through bond and share valuation, project appraisal, the cost of capital and capital structure, and each tool looks reasonable applied to the wrong problem. The Canadian chapters add their own traps, particularly the capital cost allowance treatment of depreciation, which does not behave like the straight-line assumption students carry over from an accounting course.
Why this test bank helps
Selecting a method and executing it are separate skills, and only the second is practised by working end-of-chapter problems in order under their own headings. Each question here is followed by a written rationale that first names the technique the scenario requires and then justifies it — why a scale difference makes net present value the reliable rule, why a tax shield changes an after-tax cash flow, why a financing cost does not belong in a project cash flow. That classification step is what the exam actually rewards.
What’s inside
- Questions following the Canadian edition chapter by chapter, including the tax and capital cost allowance material.
- Multiple choice, true/false and computational items with realistic figures and decision rules.
- A written rationale under every question, naming the technique before working through the numbers.
- Concentrated practice on capital budgeting and cost of capital, the most heavily examined chapters.
- One organized PDF, ready to download as soon as checkout completes.
Topics covered
- Financial statements and cash flow — cash flow from assets, operating cash flow and the difference between profit and cash
- Time value of money — single sums, annuities, perpetuities, uneven streams and effective annual rates
- Bond and share valuation — pricing from the coupon rate and market yield, yield to maturity and dividend growth models
- Capital budgeting rules — net present value, internal rate of return, payback and the conflicts between them
- Project cash flows — incremental analysis, capital cost allowance tax shields, working capital and salvage values
- Risk and return — expected return, variance, diversification, beta and the security market line
- Cost of capital — component costs, the weighted average, flotation costs and divisional rates
- Capital structure and dividends — leverage, financial distress, the tax treatment of debt and payout policy
Who it’s for
Undergraduate students taking a first corporate finance course from the ninth Canadian edition — commerce, finance and accounting majors, including those whose professional program requires the Canadian tax treatment specifically.
How to use it (the right way)
Practise in mixed blocks rather than one chapter at a time, so that you are forced to classify each problem before solving it, which is exactly what the exam requires. Read the rationale for every flagged item, including the ones you answered correctly by elimination. This is a study aid. Use it in line with your institution’s academic-integrity policy — as preparation and self-testing, never as a shortcut around the coursework and never as material taken into a graded assessment.
Sample question (shows the format — your download contains the full set)
Q. Two mutually exclusive projects have very different scales. Project A has a higher internal rate of return, while Project B has a higher net present value at the firm’s cost of capital. Which project should be accepted, and why?
- A. Project A, because a higher internal rate of return always signals a better project
- B. Project B, because net present value measures the dollar value added to the firm
- C. Neither, because the two rules disagree and the analysis is therefore invalid
- D. Both, since mutually exclusive projects can be undertaken together
Answer: B. Net present value measures the amount of value created and is additive, so when scale differences make the two rules disagree it is the rule to follow; the internal rate of return is a percentage and is silent about the size of the investment it applies to. A ignores the scale problem that produces the conflict. C treats a known limitation of the internal rate of return as a failure of the analysis. D contradicts the definition of mutually exclusive projects, only one of which can be chosen.
Edition & format
- Matches: Fundamentals of Corporate Finance, Ninth Canadian Edition, by Ross (ISBN 9781259259920).
- Format: Digital PDF, delivered instantly after checkout.
- Access: Lifetime — re-download from your account whenever you need it.
The Canadian and US editions differ in tax treatment and problem data. Please confirm the edition and ISBN above match your assigned text before buying.
Frequently asked questions
Is this the current edition? This set is prepared against the ninth Canadian edition, ISBN 9781259259920. Other editions and the US printing are listed separately.
How do I receive it? The download is available the moment checkout completes and is kept in your account for later. Nothing is shipped.
Do all the questions include rationales? Yes. Every item carries a written explanation that identifies the method and then works through it.
Is using a test bank allowed? As a study aid it is an ordinary revision resource. Follow your institution’s academic-integrity policy and never take it into a graded assessment.
More study material for this subject is in Finance Test Banks.
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