WGU D076 EXAM(ACTUAL EXAM) WITH CORRECT 150+ QUESTIONS AND CORRECTLY WE LL DEFINED ANSWERS LATEST 2024 ALREADY GRADED A+ In what way are coincident indicators useful? They are analyzed during economic shifts to provide information about the current state of the economy. Coincident indicators help analysts see the big picture of economic trends. Which type of financial institution provides individuals and firms access to financial markets? Investment institutions. Investment institutions provide both individuals and firms access to financial markets. Capital Budgeting Criteria Metrics and calculations used to determine whether a project or asset will add value and be a worthwhile investment. Beta A variable that describes how the price of a security varies with the market. Business Finance An area of finance t hat deals with sources of funding, the capital structure of corporations, the actions that managers take to increase the value of the firm to its owners, and the tools and analysis used to allocate financial resources. Capital Investment The sum of money invested in a business to purchase long -term assets to further its objective of maximizing ow ner wealth. Capital Structure The mixture of debt and equity used to finance a firm. Cumulative A feature of preferred stock specifying that if a company skips payment of a preferred stock dividend one year, it is still required to pay that dividend someti me in the future before paying any common dividends. Defensive Assets Companies or securities with beta less than 1. Discount Rate The name for interest rate when used in time value of money calculations. Dividend Discount Model A model used to evaluate co mmon stock that calculates the value of a share of common stock today by taking the present value of future dividend cash flows. Efficient market A market in which prices fully relect all the available information about a specific security. Holding Period Return The return over the entire period that an investor owns a financial security. Internal Rate of Return (IRR) The rate of return that a firm earns on its capital projects. Market Risk Risk that is inherent in the economy as a whole and cannot be diver sified away; also called systematic risk or nondiversifiable risk. Market -to-book Ratio (M/B Ratio) A market ratio found by market value of equity divided by book value of equity. Nonsystematic Risk Risk that results from factors at a particular firm and c an be reduced through diversification; also called firm -specific risk or idiosyncratic risk. Perpetuity Model A formula used to value preferred stock that is based on the calculation of a perpetuity. Plowback Ratio The percent of net income retained in the firm; also called the retention ratio. Quick Ratio
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