WGU D775 EXAMS SET FULL SOLUTION
SOLVED QUESTIONS 2026 GRADED A+.
⩥ Debt Financing. Answer: The process of borrowing funds to raise
capital, generally through loans or bonds. Debt financing requires
interest payments and involves a claim on the company's assets if the
company defaults, making it a relatively secure investment for
lenders.
⩥ Debt-to-assets (D/A) Ratio. Answer: A type of leverage ratio that
measures the percentage of a company's assets that are financed by
debt. Debt-to-Assets Ratio = Total Liabilities ÷ Total Assets.
⩥ Debt-to-equity (D/E) Ratio. Answer: A type of leverage ratio that
compares the company's total debt to its equity. Debt-to-Equity Ratio
= Total Liabilities ÷ Total Equity.
⩥ Demand-pull Inflation. Answer: Inflation that occurs when
aggregate demand in an economy outpaces aggregate supply, leading
to higher prices
⩥ Depository Institutions (DIs. Answer: Financial institutions that
accept deposits from the public and provide loans, such as
commercial banks, savings banks, and credit unions
⩥ Depreciation. Answer: A non-cash expense that represents the
gradual reduction in the value of a company's fixed assets over time.
,⩥ Discount Rate. Answer: The interest rate used to calculate the
present value of future cash flows. It reflects the time value of money,
accounting for factors like inflation, risk, and opportunity cost.
⩥ Discounting. Answer: The process of determining the present value
of a future sum of money. In time value of money calculations,
discounting is used to account for the fact that money in the future is
worth less than money today due to factors like interest rates,
inflation, and risk.
⩥ Discretionary Financing Need (DFN). Answer: The difference
between a firm's projected financing requirements for a project and its
available resources. It represents the amount of additional capital a
company must raise through sources like loans or equity to fund
profitable investments
⩥ Dividends. Answer: A portion of a company's earnings distributed
to shareholders, usually in the form of cash or additional stock.
⩥ Economic Indicators. Answer: Statistics and data points that
provide information about the overall health and direction of an
economy, such as GDP, unemployment rates, and inflation.
⩥ Equity Capital. Answer: Funds raised by a business through the sale
of ownership stakes, such as shares, to investors. Unlike debt, equity
capital does not require repayment with interest. Instead, shareholders
, benefit from potential profits, dividends, and company growth, which
gives them a vested interest in the business's success.
⩥ Equity Financing. Answer: The process of raising capital by selling
shares of ownership to investors, granting them partial ownership
without repayment obligations. Unlike debt, equity financing does not
guarantee returns, but shareholders may benefit from dividends and
appreciation in company value.
⩥ Exchange-traded Funds (ETFs). Answer: Investment funds that are
traded on stock exchanges, holding assets such as stocks,
commodities, or bonds, and generally tracking an index
⩥ Face Value. Answer: The principal amount of a bond that is paid at
the time that the bond matures.
⩥ Financial Derivatives. Answer: Financial instruments whose value
is derived from the performance of underlying assets, indexes, or
interest rates.
⩥ Financial Institutions. Answer: Organizations that provide financial
services, including banks, credit unions, insurance companies, and
investment firms.
⩥ Financial Markets. Answer: A marketplace where buyers and sellers
trade financial assets, such as stocks, bonds, currencies, and
derivatives, facilitating the allocation of resources and risk.
SOLVED QUESTIONS 2026 GRADED A+.
⩥ Debt Financing. Answer: The process of borrowing funds to raise
capital, generally through loans or bonds. Debt financing requires
interest payments and involves a claim on the company's assets if the
company defaults, making it a relatively secure investment for
lenders.
⩥ Debt-to-assets (D/A) Ratio. Answer: A type of leverage ratio that
measures the percentage of a company's assets that are financed by
debt. Debt-to-Assets Ratio = Total Liabilities ÷ Total Assets.
⩥ Debt-to-equity (D/E) Ratio. Answer: A type of leverage ratio that
compares the company's total debt to its equity. Debt-to-Equity Ratio
= Total Liabilities ÷ Total Equity.
⩥ Demand-pull Inflation. Answer: Inflation that occurs when
aggregate demand in an economy outpaces aggregate supply, leading
to higher prices
⩥ Depository Institutions (DIs. Answer: Financial institutions that
accept deposits from the public and provide loans, such as
commercial banks, savings banks, and credit unions
⩥ Depreciation. Answer: A non-cash expense that represents the
gradual reduction in the value of a company's fixed assets over time.
,⩥ Discount Rate. Answer: The interest rate used to calculate the
present value of future cash flows. It reflects the time value of money,
accounting for factors like inflation, risk, and opportunity cost.
⩥ Discounting. Answer: The process of determining the present value
of a future sum of money. In time value of money calculations,
discounting is used to account for the fact that money in the future is
worth less than money today due to factors like interest rates,
inflation, and risk.
⩥ Discretionary Financing Need (DFN). Answer: The difference
between a firm's projected financing requirements for a project and its
available resources. It represents the amount of additional capital a
company must raise through sources like loans or equity to fund
profitable investments
⩥ Dividends. Answer: A portion of a company's earnings distributed
to shareholders, usually in the form of cash or additional stock.
⩥ Economic Indicators. Answer: Statistics and data points that
provide information about the overall health and direction of an
economy, such as GDP, unemployment rates, and inflation.
⩥ Equity Capital. Answer: Funds raised by a business through the sale
of ownership stakes, such as shares, to investors. Unlike debt, equity
capital does not require repayment with interest. Instead, shareholders
, benefit from potential profits, dividends, and company growth, which
gives them a vested interest in the business's success.
⩥ Equity Financing. Answer: The process of raising capital by selling
shares of ownership to investors, granting them partial ownership
without repayment obligations. Unlike debt, equity financing does not
guarantee returns, but shareholders may benefit from dividends and
appreciation in company value.
⩥ Exchange-traded Funds (ETFs). Answer: Investment funds that are
traded on stock exchanges, holding assets such as stocks,
commodities, or bonds, and generally tracking an index
⩥ Face Value. Answer: The principal amount of a bond that is paid at
the time that the bond matures.
⩥ Financial Derivatives. Answer: Financial instruments whose value
is derived from the performance of underlying assets, indexes, or
interest rates.
⩥ Financial Institutions. Answer: Organizations that provide financial
services, including banks, credit unions, insurance companies, and
investment firms.
⩥ Financial Markets. Answer: A marketplace where buyers and sellers
trade financial assets, such as stocks, bonds, currencies, and
derivatives, facilitating the allocation of resources and risk.
