WGU D076 Objective Assessment V1 (Latest 2024/ 2025 Update) Finance Skills for Managers| Questions and Verified Answers| 100% Correct| Grade A

WGU D076 Objective Assessment V1 (Latest 2024/ 2025 Update) Finance Skills for Managers| Questions and Verified Answers| 100% Correct| Grade A Q: What does high inventory turnover relative to the industry and competitors indicate? Answer: The firm does not hold enough inventory and is making its customers wait longer to receive their purchased goods. Q: What is the ratio that tells you on average how long it takes for a firm to collect accounts receivable? Answer: Average collection period Q: Three different names are used for interest rate for different purposes and perspectives: Answer: discount rate, required rate, and cost of capital. Q: Simple interest is the interest only on the principal, while compound interest is the interest on the principal plus the interest on earned interest. Answer: Q: What is the main purpose of charging interest? Answer: It allows borrowers to pay to use the assets of another entity to accomplish their own goals. Q: The required rate of return is also known as the ... in the context of corporate finance. Answer: hurdle rate Q: The... is the rate of return or compensation that an investor or a lender will accept for investments such as stocks, bonds, or loans. Answer: required rate of return Q: is the possibility that the realized or actual return will differ from the expected return. Answer: Risk Q: Three causes of inflation are increased demand for goods and services, rising costs, and built-in inflation. Answer: Q: is the rate at which invested money grows for a certain period of time Answer: The nominal rate Q: What is the compensation for risk given to investors called? Answer: Risk premium Q: Which type of interest rate is the rate at which invested money grows for a certain period time? Answer: Nominal rate Q: Which component of an interest rate is an indicator of inflation and opportunity cost? Answer: Risk-free rate Q: What is the name for the interest rate expressed on an annual basis? Answer: Annual percentage rate Q: Why is the required rate of return also known as the hurdle rate? Answer: It is the minimum rate that a firm must surpass to accept a project.