WGU C214 Exam Bundle

Statement of Cash Flows - AnswerShows the change in cash balance for a period of time. Focuses only on items where cash is received, or cash is paid. Cash Flow from Operating Activities (CFO) - AnswerCash flow that a company generates as a result of day-to-day business operations. Deals with Curr...

Coupon Rate - answerThe interest rate that a company promises to pay on bonds Market Rate - answerThe interest rate on other comparable bonds Par Value - answerThe amount payable on maturity of the bond Market rate - answerSame as YTM - Yield to Maturity Gordon Growth Model - answerAssum...

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

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 chang...

Corporate Finance - Answerfocuses on financial decision making by a firms management Investments - Answervarious types of financial instruments (stocks, bonds, etc) Banking or Financial Institutions - Answermake money by paying depositors a smaller interest rate than the interest rate charged ...

Initial Outlay - answerThe total dollar amount to begin a project. Cost of Equity - answerHow much it costs a firm (in percentage terms) to use equity financing. From the investor's perspective, it is what they require given the riskiness/opportunity cost of the company. From the companies persp...

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 charg...

Trading on the NYSE is executed without a specialist (i.e. a market maker). True or False? - Answer False Stocks and Bonds are two types of financial instruments. True or False? - Answer True When revenue is matched with cost of sales in an Income statement it is called? - Answer Matching prin...

Which will be larger: actual taxes payable or accounting income tax expense - Answer Accounting tax expense will be higher; actual taxes based on IRS rules will be lower Which cash flow measures the change in long term assets? - Answer Cash flow investing Which financial ratios measure "effic...

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 fro...

Hedging - Answer The process of eliminating risk Tariffs - Answer Taxes levied on goods imported into a country Foreign Exchange Risk (AKA FX Risk) - Answer Risks associated with the changing values of countries' concurrences Direct Quote - Answer If you are located in the United States, a...

What standards are used to help US investors understand and compare foreign financial statements to domestic financial statements? - Answer International Financial Reporting Standards When a company is optimizing its resources and maintaining or improving productivity, they are engaging in what h...

1. The goal of the corporation is to: a. Maximize profits b. Maximize market share c. Maximize stock price d. Minimize risk - Answer c. Maximize stock price 2. Risk premium is best described as a. Return on risky securities b. Compensation for risk-taking c. Return on stocks d. Expected r...

Trading on the NYSE is executed without a specialist (i.e. a market maker). (T/F) - Answer F Stocks and bonds are two types of financial instruments (T/F) - Answer True The matching principle in accrual accounting requires that: a. Revenues be recognized when the earnings process is complete ...