C214 WGU questions with correct answers

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 Operating Activities (CFO) Formula Answer Cash Flow from Operating Activities (CFO) = Net Income + Depreciation +/- Decreases/Increases in Current Assets +/- Increase/Decrease in Current Liabilities Cash Flow form Investing Activities (CFI) = Change in PPE + Depreciation Answer Cash Flow from Investing Activities (CFI) Formula Cash Flow from Financing Activities (CFF) Formula Answer Cash Flow from Financing Activities (CFF) = Change in Equity + Change in Long Term Debt - Dividends paid Gordon Growth Model Formula Answer Gordon Growth Model = (Expected Dividend at end of year)/(Required Rate of Return - Dividend Growth Rate) Degree of Operating Leverage (DoL) Formula Answer Degree of Operating Leverage (DoL) = (Sales Revenue - Variable Cost)/ Net Income Annual Percentage Yield (APY) Formula Answer Annual Percentage Yield (APY) = (1 + r/n)(n) - 1 r = stated annual interest rate N = number of compounding periods.