WGU C214 Financial Mgmt Pass the OA 2025 Actual Questions and Answers (2025 / 2026) (Verified Answers)

WGU C214 Financial Mgmt Pass the OA 2025 Actual Questions and Answers (2025 / 2026) (Verified Answers) Characteristics of preferred stock includes - CORRECT Answer -dividends in arrears -dividends are cumulative -higher payoff claim in a BK (has first dibs in a BK) -considered "hybrid" (part stock/part bond) -no fixed maturity date -no voting rights -can skip dividend payments -dividends don't change year-after-year -used in start ups (IPO) Preferred stock dividends - CORRECT Answer can go without payment and pay in arrears the following year Characteristics of common stock are - CORRECT Answer -voting rights -no maturity date -corporate governance -lower payoff claim in BK -variable returns -unlimited earnings potential -earnings are in dividends & the increase in price of stock New start up ventures often issue - CORRECT Answer preferred stock (in an IPO) What stock is considered a hybrid - CORRECT Answer preferred stock One thing common stock and preferred stock have in common is - CORRECT Answer both have no maturity date Which type of security has voting rights - CORRECT Answer common stock Debt covenants and restrictions help to ensure that - CORRECT Answer management is meeting bond and shareholder expectations NOTE: covenants are promises meant to be kept What is true regarding bonds - CORRECT Answer -when bond matures, bondholder gets lump sum back -coupon rate doesn't change -maturity is in years -PAR value is typically $1000 -Future value (same as PAR) is typically $1000