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WGU Financial-Management Real Exam Questions and Answers FREE

Exam Dumps Financial-Management Practice Free Latest WGU Practice Tests

WGU Financial-Management Exam Syllabus Topics:

Section Objectives
Topic 1: Capital Budgeting – Cash Flow Estimation

  • 1. Incremental Cash Flows
  • 2. Depreciation Methods

– Decision Criteria

  • 1. Payback Period
  • 2. Net Present Value (NPV)
  • 3. Modified IRR (MIRR)
  • 4. Internal Rate of Return (IRR)
Topic 2: Cost of Capital and Capital Structure – Leverage and Capital Structure

  • 1. Financial Leverage
  • 2. Optimal Capital Structure
  • 3. Operating Leverage

– Cost of Capital

  • 1. Weighted Average Cost of Capital (WACC)
  • 2. Cost of Equity (CAPM, DCF)
  • 3. Cost of Debt
Topic 3: Time Value of Money – Present and Future Value

  • 1. Present Value of a Lump Sum
  • 2. Annuities (Ordinary and Due)
  • 3. Future Value of a Lump Sum

– Bond and Stock Valuation

  • 1. Valuation of Bonds
  • 2. Valuation of Common Stock
  • 3. Valuation of Preferred Stock
Topic 4: Financial Management Concepts – Financial Environment

  • 1. Objectives of the Financial Manager
  • 2. Agency Problem and Corporate Governance
  • 3. Forms of Business Organization

– Financial Markets and Institutions

  • 1. Financial Markets
  • 2. Financial Institutions
  • 3. Interest Rate Levels
Topic 5: Working Capital Management – Current Asset Management

  • 1. Receivables Management
  • 2. Cash Management
  • 3. Inventory Management

– Current Liabilities Management

  • 1. Short-term Financing
  • 2. Trade Credit
Topic 6: Financial Statement Analysis – Ratio Analysis

  • 1. Profitability Ratios
  • 2. Liquidity Ratios
  • 3. Debt Management Ratios
  • 4. Asset Management Ratios
  • 5. Market Value Ratios

– Financial Statement Basics

  • 1. Balance Sheet
  • 2. Income Statement
  • 3. Statement of Cash Flows

 

NO.48 A recent news article reported that a popular tech start-up has not yet reached profitability or experienced a period of positive cash flows from operations. Instead, the company has been focused primarily on capturing market share and attracting new customers.
What does the continued negative cash flow from operations (CFO) signal about this firm?

 
 
 
 

NO.49 Which group does the Securities and Exchange Commission (SEC) work with closely to oversee broker- dealers?

 
 
 
 

NO.50 What is systematic risk in the capital asset pricing model (CAPM)?

 
 
 
 

NO.51 What is a consequence of a firm having a longer cash cycle?

 
 
 
 

NO.52 A company is looking to invest in new machinery that will enhance overall efficiency. The projected assets needed for the project are $590,000, the projected liabilities are $431,000, and the projected equity is $49,000.
What is the discretionary financing need (DFN)?

 
 
 
 

NO.53 What is the difference between market orders and limit orders?

 
 
 
 

NO.54 Considering the fundamental relationships of the balance sheet, how can a company’s assets increase without a corresponding rise in liabilities?

 
 
 
 

NO.55 How is the cash ratio calculated?

 
 
 
 

NO.56 Why would a company choose to maintain a certain level of cash as a reserve balance?

 
 
 
 

NO.57 Why might a firm use a combination of methods to calculate the cost of common equity?

 
 
 
 

NO.58 What is the purpose of the Sarbanes-Oxley Act requirement for the board of directors to effectively represent shareholders?

 
 
 
 

NO.59 A start-up company’s lender is concerned that the company may not be able to meet its financial obligations.
It asks the company to provide it with information regarding its current assets and current liabilities.
Which information would the start-up company need to provide to the lender?

 
 
 
 

NO.60 What is the effect of exchange rate fluctuations on multinational corporations’ financial management?

 
 
 
 

NO.61 Use Whole Pine Inc.’s financial statements for 20X3 below to answer the following question.
What is Whole Pine Inc.’squick ratiofor 20X3?

 
 
 
 

NO.62 A company is expected to pay a dividend of $2 next year, and dividends are expected to grow at 5% per year indefinitely. The required rate of return on the company’s stock is 10%.
What is the value of the stock using the Gordon growth model?

 
 
 
 

NO.63 What is a limitation of historical mean returns when estimating the cost of common equity?

 
 
 
 

NO.64 Rusty RoboTech, a robotics technology company, has provided the following financial information for the year 20X3:
* Sales Revenue: $500,000
* Net Income: $50,000
* Dividend Payout: 40% of Net Income
* Total Assets at the beginning of 20X3: $300,000
* Total Liabilities at the beginning of 20X3: $150,000
* Equity at the beginning of 20X3: $150,000
* Historical Cash-to-Sales Ratio: 5%
* Accounts Receivable-to-Sales Ratio: 15%
* Inventory-to-Sales Ratio: 25%
* Cost of Goods Sold-to-Sales Ratio: 43%
For the year 20X4, Rusty RoboTech projects a 20% increase in sales revenue. Other ratios and the dividend policy are expected to remain the same.
What is the projected inventory value for Rusty RoboTech at the beginning of 20X4?

 
 
 
 

NO.65 What is the bid-ask spread?

 
 
 
 

NO.66 A company has a return on assets (ROA) of 10% and total assets of $500 million.
What is its net income?

 
 
 
 

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