Every formula in an introductory corporate finance course is manageable on its own, and that is exactly what makes the exam harder than the homework. Practical Financial Management, 8th Edition by William R. Lasher introduces its tools one at a time — discounting, bond pricing, the capital asset pricing model, net present value, the weighted average cost of capital — and then the paper hands you a paragraph about a company with no label on it. Deciding whether the question wants a valuation, a project decision or a required return is the real work, and it is the step that homework problems, grouped helpfully under their own chapter headings, never make you practise.
Why this test bank helps
Picking the correct equation and then executing it are two separate skills, and only one of them is tested by working through end-of-chapter problems in order. Every question in this set is followed by a written rationale that starts by naming the tool the scenario calls for and why, then shows the working. That habit — classify the problem, then solve it — is what makes an unfamiliar exam question tractable rather than intimidating.
What’s inside
- Questions that follow the book chapter by chapter, so each week of reading has a defined block of practice.
- Mixed formats — conceptual multiple choice, true/false and computational items with realistic figures.
- A written rationale under every question, identifying the technique before working the numbers.
- Concentrated practice on time value, capital budgeting and cost of capital, the three chapters most heavily examined.
- One organized PDF, ready to download as soon as checkout completes.
Topics covered
- Financial statements and ratio analysis — liquidity, activity, leverage and profitability measures and what each one diagnoses.
- Time value of money — single amounts, ordinary annuities, annuities due, uneven streams and amortized loans.
- Bond valuation — pricing from the coupon rate and market yield, yield to maturity and interest rate risk.
- Stock valuation — the dividend discount model, constant and non-constant growth, and required return.
- Risk and return — expected return, standard deviation, diversification, beta and the capital asset pricing model.
- Capital budgeting — net present value, internal rate of return, payback and the conflicts between the rules.
- Cash flow estimation — incremental cash flows, depreciation effects, working capital changes and terminal values.
- Cost of capital and financing — component costs, the weighted average, capital structure and working capital management.
Who it’s for
Undergraduate and MBA students taking a first course in corporate or managerial finance from this edition, including non-finance majors who need the toolkit for a capstone, an accounting sequence or a professional program.
How to use it (the right way)
Work the chapter examples until the mechanics are automatic, then attempt mixed blocks of questions rather than one chapter at a time, so you are forced to classify each problem before solving it. Read the rationale for everything you flagged. 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 or as material taken into a graded assessment.
Sample question (shows the format — your download contains the full set)
Q. A project requires an outlay of $50,000 today and is expected to return $20,000 at the end of each of the next three years. The required return is 10%. What is the project’s net present value?
- A. +$10,000
- B. −$263
- C. +$6,000
- D. +$49,737
Answer: B. The three-year annuity factor at 10% is 2.4869, so the inflows are worth $49,737 today; subtracting the $50,000 outlay leaves a negative net present value of about $263, and the project should be rejected. A adds the undiscounted cash flows and subtracts the cost, ignoring the time value of money entirely. D stops at the present value of the inflows and never subtracts the outlay. C applies the 10% rate to a single year’s cash flow rather than discounting the stream.
Edition & format
- Matches: Practical Financial Management, 8th Edition, by William R. Lasher (ISBN 9781305637542).
- Format: Digital PDF, delivered instantly after checkout.
- Access: Lifetime — re-download from your account whenever you need it.
Problem data and chapter numbering change between editions. Please confirm the edition and ISBN above match the book your course assigned before you buy.
Frequently asked questions
Is this the current edition? This set is prepared for the 8th Edition, ISBN 9781305637542. Other editions are listed separately, so use the one your syllabus names.
How do I receive it? The download appears on your order confirmation page and in your account the moment checkout completes.
Do all the questions include rationales? Yes. Each carries a written explanation that names the technique and then works through the calculation.
Is using a test bank allowed? As a study aid it is ordinary practice material. Follow your institution’s academic-integrity policy and never take it into a graded assessment.
More titles for this subject are in Finance Test Banks.
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