100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
Previously searched by you
Previously searched by you
logo
WGU C214 Financial Mgmt Pass the OA 2024/2025 already graded A+ $9.99   Add to cart
Quickly navigate to
Preview
  2.  
  3. Western Governers University
  4.  
  5. Financial Management

Exam (elaborations)

WGU C214 Financial Mgmt Pass the OA 2024/2025 already graded A+
 11 views  0 purchase

WGU C214 Financial Mgmt Pass the OA 2024/2025 already graded A+

Preview 2 out of 12  pages

Document information

  • February 24, 2024
  • 12
  • 2023/2024
  • Exam (elaborations)
  • Questions & answers

Subjects

  • financial management
  • characteristics of preferred stock includes ans
  • characteristics of common stock are ans voting r
  • which type of security has voting rights anscomm

Written for

All documents for this subject (16)

Seller

avatar-seller
Ashley96

Reviews received

Content preview

WGU C214 Financial Mgmt Pass the OA

Characteristics of preferred stock includes - ANS-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 year-after-year
-used in start ups (IPO)

Preferred stock dividends - ANScan go without payment and pay in arrears the following year

Characteristics of common stock are - ANS-voting rights
-no maturity date
-corporate governance
-lower payoff claim in BK
-variable returns
-unlimited earnings potential
-earnings are in dividends & the increase in price of stock

New start up ventures often issue - ANSpreferred stock (in an IPO)

What stock is considered a hybrid - ANSpreferred stock

One thing common stock and preferred stock have in common is - ANSboth have no maturity
date

Which type of security has voting rights - ANScommon stock

Debt covenants and restrictions help to ensure that - ANSmanagement is meeting bond and
shareholder expectations
NOTE: covenants are promises meant to be kept

What is true regarding bonds - ANS-when bond matures, bondholder gets lump sum back
-coupon rate doesn't change
-maturity is in years
-PAR value is typically $1000
-Future value (same as PAR) is typically $1000

Bond sells at face value when - ANSrequired rate of return is equal to the coupon rate

, Why are bonds the primary method for raising capital - ANSbecause bonds remove the
intermediary costs
NOTE: IPO's require an intermediary known as a syndicate - a group of banks underwriting the
security issue

What type of bond can be traded for stock - ANSconvertible bonds

What is the interest rate for annual payments of a bond known as - ANSthe coupon rate
NOTE: coupon rate is the established interest rate for the life of the bond and will remain
unchanged

Coupon rate is the established rate of the bond and should - ANSnever change

Debentures are - ANSsecured bonds
NOTE: debentures are a debt instrument (bond) issued to raise cash, secured against a
company's assets and backed by credit, transferable by the holder, and may also be unsecured

Secured loan - ANShas collateral like a mortgage

The amount repaid at the expiration date of a bond is - ANSPAR value
NOTE: expiration date is also known as maturity date PAR (or Face Value) is typically $1000

Duration measures - ANSthe market risk of a bond and is the percentage drop in price caused
by a 1% increase in yield (rate)
NOTE: measurement of the drop in price after a rate increase

Maturity of bonds is calculated in - ANSyears

A bond premium occurs when - ANSbonds are issued for an amount greater than their face or
maturity amount; caused by the bonds having a stated interest rate that is higher than the
market interest rate for similar bonds

Junk Bonds are - ANShigh yield bonds without any stability

"Leveraged" results in - ANShaving more debt (bonds) than equity (stock) and lower stock
prices
NOTE: recall that debt is safer and levels out risk in a portfolio

In current assets, inventory is the - ANSLEAST liquid of current assets
NOTE: current assets take less than 12 months to make liquid

Net fixed assets are - ANSlong term assets such as buildings, land, equipment, machinery
NOTE: assets that are not current

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller Ashley96. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for $9.99. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

67096 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 14 years now

Start selling

Recently viewed by you

Exam (elaborations) ·

(0)

HIST 405 Final Exam UNH Spring 2019
$9.99
  • (0)
  Add to cart