WGU C214 Financial Management Tests Bundle

Corporate Finance Answer focuses on financial decision making by a firms management Investments Answer various types of financial instruments (stocks, bonds, etc) Banking or Financial Institutions Answer make money by paying depositors a smaller interest rate than the interest rate charged to ...

Characteristics of preferred stock includes Answer -dividends in arrears -dividends are cumulative -higher payoff claim in a BK (has first dibs in a BK) -considered "hybrid" (part stock/part bond) -no fixed maturity date -no voting rights -can skip dividend payments -dividends don't change...

How can a private firm appropriately maximize shareholder value? Answer By making decisions that keep the control of the business with the owners Why are American regulators focused on international investing in a global marketplace? Answer Because international investing in a global marketplace ...

Discretionary Financing Needed Formula Answer Discretionary Financing Needed (DFN) = Projected Total Asset - Projected Total Liabilities - Projected Equity Sustainable Growth Rate Formula Answer Sustainable Growth Rate (SGR) = Return on Equity (ROE) X (1-Divided Payout Ratio) Cash Flow from Op...

The stock price of a company increases and the market is deemed efficient. What assumption can be made? Answer A new, patented, product was introduced to the market. Which statement is true about how the global market affects the U.S.? Answer Foreign investors and fund managers make decisions bas...

The goal of the corporation is to: Answer maximize stock price What makes an efficient market? Answer Competitive market, liquidity, transparency What is the relationship between risk and required return? Answer As risk increases, required return increases. What are the 3 main financial sta...

WGU C214 Financial Management questions with correct answers

1. What does the Foreign Corrupt Practices Act forbid U.S. companies to do Answer Prohibits U.S. firms and individuals from paying bribes to foreign officials to further business deals. 2. What are two basic types of financial instruments Answer Stocks and Bonds 3. What are secondary markets A...

Elements of Financial Statements (8 Questions) Answer Revenue Expenses Income Assets Liabilities Equity Revenue Answer Amount generated by sale of products and services Expenses Answer Amount incurred to manufacture products Income Answer The difference between revenues and expenses ...