D027 Advanced Pathopharmacological
Foundations Complete Solution 2026 |
WGU Nursing
1. Which of the following are capital structure concerns?
I. How to obtain short-term financing
II. The company’s financing mix
III. The cost of funds
IV. How and where to raise money
A. I and II
B. I, II and III
C. II, III and IV ✅
D. I, III and IV
E. All of the above
Correct Answer: C
Rationale:
Capital structure focuses on long-term financing decisions, including the mix of debt and
equity and the cost of those funds. Short-term financing is a working capital concern, not a
capital structure issue. Decisions about where and how to raise long-term funds directly
affect the firm’s capital structure. Therefore, II, III, and IV are correct.
2. Market values reflect which of the following?
,A. The amount someone is willing to pay today for an asset. ✅
B. The value of the asset based on generally accepted accounting principles.
C. The asset’s historical cost.
D. A and B only
E. None of the above
Correct Answer: A
Rationale:
Market value represents the current price buyers are willing to pay for an asset. It reflects
future expectations, risk, and supply and demand. Accounting values and historical costs are
backward-looking and do not adjust to market conditions. Therefore, only option A is correct.
3. Riddell, Inc. earned $144,320 in taxable income. How much tax does the company owe?
A. $39,535
B. $49,069
C. $51,285 ✅
D. $56,285
E. $78,535
Correct Answer: C
Rationale:
Using the progressive corporate tax schedule, income is taxed across multiple brackets. The
tax owed is calculated by applying each marginal tax rate to the portion of income in that
,bracket. When the appropriate rates are applied correctly, the total tax equals $51,285. This
reflects the marginal—not average—tax method.
4. Regional Bank offers an APR of 9% compounded quarterly. Local Bank offers an EAR of
9.15%. You should choose _____ because its _____ is lower.
A. Regional Bank, APR
B. Local Bank, EAR
C. Regional Bank, EAR ✅
D. Local Bank, APR
Correct Answer: C
Rationale:
APR does not account for compounding frequency, while EAR reflects the true annual cost. A
9% APR compounded quarterly results in an EAR greater than 9%. Since Local Bank’s EAR is
9.15%, Regional Bank’s EAR is lower, making it the better choice.
5. Which of the following increases the future value of a deposit? (Select all that apply)
A. Interest rate ✅
B. Initial deposit amount ✅
C. Frequency of interest payments ✅
D. Length of the investment period ✅
Correct Answer: A, B, C, D
, Rationale:
Future value increases when the interest rate rises because earnings compound faster. A
higher initial investment results in greater compounded growth. More frequent compounding
increases the effective rate, and a longer time horizon allows more compounding periods. All
listed factors positively affect future value.
6. Amy needs $20,000 in five years at 6.5% annually. How much must she deposit today?
A. $12,468.07
B. $12,502.14 ✅
C. $14,597.62
D. $17,044.32
E. $17,129.01
Correct Answer: B
Rationale:
This is a present value problem using annual compounding. The formula discounts the future
value back to today using the given interest rate and time period. Applying the present value
formula yields $12,502.14. This is the lump sum needed today to reach $20,000 in five years.
7. Paper Pro borrowed 75% of $65,000 at 8% for 11 years. What is the monthly payment?
A. $91.05
B. $284.13
C. $556.50
D. $682.87
E. $731.60 ✅
Foundations Complete Solution 2026 |
WGU Nursing
1. Which of the following are capital structure concerns?
I. How to obtain short-term financing
II. The company’s financing mix
III. The cost of funds
IV. How and where to raise money
A. I and II
B. I, II and III
C. II, III and IV ✅
D. I, III and IV
E. All of the above
Correct Answer: C
Rationale:
Capital structure focuses on long-term financing decisions, including the mix of debt and
equity and the cost of those funds. Short-term financing is a working capital concern, not a
capital structure issue. Decisions about where and how to raise long-term funds directly
affect the firm’s capital structure. Therefore, II, III, and IV are correct.
2. Market values reflect which of the following?
,A. The amount someone is willing to pay today for an asset. ✅
B. The value of the asset based on generally accepted accounting principles.
C. The asset’s historical cost.
D. A and B only
E. None of the above
Correct Answer: A
Rationale:
Market value represents the current price buyers are willing to pay for an asset. It reflects
future expectations, risk, and supply and demand. Accounting values and historical costs are
backward-looking and do not adjust to market conditions. Therefore, only option A is correct.
3. Riddell, Inc. earned $144,320 in taxable income. How much tax does the company owe?
A. $39,535
B. $49,069
C. $51,285 ✅
D. $56,285
E. $78,535
Correct Answer: C
Rationale:
Using the progressive corporate tax schedule, income is taxed across multiple brackets. The
tax owed is calculated by applying each marginal tax rate to the portion of income in that
,bracket. When the appropriate rates are applied correctly, the total tax equals $51,285. This
reflects the marginal—not average—tax method.
4. Regional Bank offers an APR of 9% compounded quarterly. Local Bank offers an EAR of
9.15%. You should choose _____ because its _____ is lower.
A. Regional Bank, APR
B. Local Bank, EAR
C. Regional Bank, EAR ✅
D. Local Bank, APR
Correct Answer: C
Rationale:
APR does not account for compounding frequency, while EAR reflects the true annual cost. A
9% APR compounded quarterly results in an EAR greater than 9%. Since Local Bank’s EAR is
9.15%, Regional Bank’s EAR is lower, making it the better choice.
5. Which of the following increases the future value of a deposit? (Select all that apply)
A. Interest rate ✅
B. Initial deposit amount ✅
C. Frequency of interest payments ✅
D. Length of the investment period ✅
Correct Answer: A, B, C, D
, Rationale:
Future value increases when the interest rate rises because earnings compound faster. A
higher initial investment results in greater compounded growth. More frequent compounding
increases the effective rate, and a longer time horizon allows more compounding periods. All
listed factors positively affect future value.
6. Amy needs $20,000 in five years at 6.5% annually. How much must she deposit today?
A. $12,468.07
B. $12,502.14 ✅
C. $14,597.62
D. $17,044.32
E. $17,129.01
Correct Answer: B
Rationale:
This is a present value problem using annual compounding. The formula discounts the future
value back to today using the given interest rate and time period. Applying the present value
formula yields $12,502.14. This is the lump sum needed today to reach $20,000 in five years.
7. Paper Pro borrowed 75% of $65,000 at 8% for 11 years. What is the monthly payment?
A. $91.05
B. $284.13
C. $556.50
D. $682.87
E. $731.60 ✅
