WGU C214 Financial Management | Actual Questions and Answers Latest Updated 2026/2027 (Graded A+)

WGU - Financial Management C214 Pre-Assessment
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(PA) -t|Financial
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Management
Actual Questions
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N2 N2 C214 Pre-
and Answers
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Assessment (PA) N2 N2



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What does free cash flow represent?
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Cash available for distribution
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Cash used for paying off
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debts
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reinvestment
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Cash reserved for N2 N2

Cash allocated for executive bonuses
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emergency expenses
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What are two primary benefits of the capital asset pricing model
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N2 (CAPM)?


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CAPM provides a way to N2 N2 N2 N2



CAPM provides a way to
N2 N2 N2 N2 determine the expected N2 N2



N2 measure stock volatility. & CAPM
N2 N2 N2 N2 return for stocks. & CAPM
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N2 provides a method to forecast
N2 N2 N2 N2 provides a way to estimate
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N2 future earnings.N2 the required return.
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CAPM provides a way to
N2 N2 N2 N2 CAPM provides a way to
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predict market trends. & CAPM
N2 N2 N2 N2 N2 assess company profitability.
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provides a method to evaluate
N2 N2 N2 N2 N2 & CAPM
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portfolio
N2 provides a method to analyze market
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diversification. N2 efficiency.




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If a company outsources the manufacturing of its products to a foreign
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N2 country, what are the likeliest
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outcomes?



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, Consumer prices will remain N2 N2 N2

Consumer prices will decrease and
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stable and Domestic
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Foreign employment will decrease.
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employment will
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decrease.



Consumer prices will N2 N2

Consumer prices will increase and N2 N2 N2 N2

decrease
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Domestic employment will
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employment will decrease.
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increase.
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What do cash flows from investing activities generally relate to?
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A firm's purchase and sale
N2 N2 N2 N2 A firm's dividend payments
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of long-term assets
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A firm's management of short-term
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A firm's daily operational expenses
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debts


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, Which investment option is less desirable for a prudent investor?
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Quadrant 1, top left, 1/4 to left
N2 N2 N2 N2 N2 N2 Quadrant 2, top right, 3/4 to left
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side. Also A. for answer.
N2 N2 N2 N2 N2 side. Also B. for answer.
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Quadrant 3, bottom right, 1/4 to
N2 N2 N2 N2 N2 Quadrant 4, bottom left, 3/4 toN2 N2 N2 N2 N2



right side. Also D. for answer.
N2 N2 N2 N2 N2 N2 right side. Also E. for answer.
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What is the reason for holding cash and cash equivalents?
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To provide liquidity
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To raise interest rate
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