WGU C214 FINANCIAL MGMT PASS THE OA TEST WITH ALL ANSWERS.

WGU C214 FINANCIAL MGMT PASS THE OA TEST WITH ALL
ANSWERS




Characteristicsnofnpreferrednstocknincludesn-ncorrectnanswer--dividendsninnarrears
-dividendsnarencumulative
-highernpayoffnclaimninnanBKn(hasnfirstndibsninnanBK)
-consideredn"hybrid"n(partnstock/partnbond)
-nonfixednmaturityndate
-nonvotingnrights
-cannskipndividendnpayments
-dividendsndon'tnchangenyear-after-year
-usedninnstartnupsn(IPO)

Preferrednstockndividendsn-ncorrectnanswer-
canngonwithoutnpaymentnandnpayninnarrearsnthenfollowingnyear

Characteristicsnofncommonnstocknaren-ncorrectnanswer--votingnrights
-nonmaturityndate
-corporatengovernance
-lowernpayoffnclaimninnBK
-variablenreturns
-unlimitednearningsnpotential
-earningsnareninndividendsn&nthenincreaseninnpricenofnstock

Newnstartnupnventuresnoftennissuen-ncorrectnanswer-preferrednstockn(innannIPO)

Whatnstocknisnconsiderednanhybridn-ncorrectnanswer-preferrednstock

, Onenthingncommonnstocknandnpreferrednstocknhaveninncommonnisn-ncorrectnanswer-
bothnhavennonmaturityndate

Whichntypenofnsecuritynhasnvotingnrightsn-ncorrectnanswer-commonnstock

Debtncovenantsnandnrestrictionsnhelpntonensurenthatn-ncorrectnanswer-
managementnisnmeetingnbondnandnshareholdernexpectations
NOTE:ncovenantsnarenpromisesnmeantntonbenkept

Whatnisntruenregardingnbondsn-ncorrectnanswer--
whennbondnmatures,nbondholderngetsnlumpnsumnback
-couponnratendoesn'tnchange
-maturitynisninnyears
-PARnvaluenisntypicallyn$1000
-Futurenvaluen(samenasnPAR)nisntypicallyn$1000

Bondnsellsnatnfacenvaluenwhenn-ncorrectnanswer-
requirednratenofnreturnnisnequalntonthencouponnrate

Whynarenbondsnthenprimarynmethodnfornraisingncapitaln-ncorrectnanswer-
becausenbondsnremoventhenintermediaryncosts
NOTE:nIPO'snrequirenannintermediarynknownnasnansyndicaten-
nangroupnofnbanksnunderwritingnthensecuritynissue


Whatntypenofnbondncannbentradednfornstockn-ncorrectnanswer-convertiblenbonds

Whatnisntheninterestnratenfornannualnpaymentsnofnanbondnknownnasn-
ncorrectnanswer-thencouponnrate
NOTE:ncouponnratenisnthenestablishedninterestnratenfornthenlifenofnthenbondnandnwilln
remainnunchanged

Couponnratenisnthenestablishednratenofnthenbondnandnshouldn-ncorrectnanswer-
nevernchange

Debenturesnaren-ncorrectnanswer-securednbonds
NOTE:ndebenturesnarenandebtninstrumentn(bond)nissuedntonraisencash,nsecurednaga
instnancompany'snassetsnandnbackednbyncredit,ntransferablenbynthenholder,nandnma
ynalsonbenunsecured

Securednloann-ncorrectnanswer-hasncollateralnlikenanmortgage

Thenamountnrepaidnatnthenexpirationndatenofnanbondnisn-ncorrectnanswer-PARnvalue
NOTE:nexpirationndatenisnalsonknownnasnmaturityndatenPARn(ornFacenValue)nisntypi
callyn$1000

Durationnmeasuresn-ncorrectnanswer-
thenmarketnrisknofnanbondnandnisnthenpercentagendropninnpricencausednbynan1%nincr
easeninnyieldn(rate)
NOTE:nmeasurementnofnthendropninnpricenafternanratenincrease