Page 1 of 59
WGU C214 FINANCIAL MANAGEMENT
CONCEPTS PRACTICE EXAM | {LATEST 2026/
2027 UPDATE} COMPLETE ACTUAL AND
AUTHENTIC EXAM | BRAND NEW!
Domain 1: Foundations of Finance & Financial Markets
According to CAPM, what would a cause a required return to
increase?
a. Lower Treasury yields
b. Lower market risk premium
c. Increase in Beta
d. Increase in expected growth rate
c
Why do firms hold an operating balance?
a. As a safety net for unexpected bills
b. To pay immediate bills
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c. Bank lender requirements
d. All of the above
b
In capital budgeting, which cash flow is negative?
a. Initial cash flow
b. Differential cash flow
c. Terminal cash flow
d. All are positive
a
The Efficient Frontier contains points with:
a. Minimum risk
b. Maximum return
c. Maximum return for a given risk
d. Maximum risk
c
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What authority monitors banking systematic risk?
a. FSOC
b. SEC
c. FINRA
d. Federal Reserve
a
If IRR is greater than WACC, an adopted project,
a. Decreases shareholder value
b. Reduces Beta
c. Increases shareholder value
d. Increases leverage
c
The goal of a corporation is:
a. Maximize profits
b. Maximize shareholder value
c. Produce the best product possible
d. Minimize operating expenses
, Page 4 of 59
b
To whom do you complain about stock broker sales practices?
a. SEC
b. FINRA
c. FDIC
d. New York Stock Exchange
b
Which has priority of claims in bankruptcy?
a. Preferred stock holders
b. Common stock holders
c. Bond holders
d. Subordinated debenture holders
c
Which would not affect WACC?
a. Cash Flow Financing
WGU C214 FINANCIAL MANAGEMENT
CONCEPTS PRACTICE EXAM | {LATEST 2026/
2027 UPDATE} COMPLETE ACTUAL AND
AUTHENTIC EXAM | BRAND NEW!
Domain 1: Foundations of Finance & Financial Markets
According to CAPM, what would a cause a required return to
increase?
a. Lower Treasury yields
b. Lower market risk premium
c. Increase in Beta
d. Increase in expected growth rate
c
Why do firms hold an operating balance?
a. As a safety net for unexpected bills
b. To pay immediate bills
,Page 2 of 59
c. Bank lender requirements
d. All of the above
b
In capital budgeting, which cash flow is negative?
a. Initial cash flow
b. Differential cash flow
c. Terminal cash flow
d. All are positive
a
The Efficient Frontier contains points with:
a. Minimum risk
b. Maximum return
c. Maximum return for a given risk
d. Maximum risk
c
,Page 3 of 59
What authority monitors banking systematic risk?
a. FSOC
b. SEC
c. FINRA
d. Federal Reserve
a
If IRR is greater than WACC, an adopted project,
a. Decreases shareholder value
b. Reduces Beta
c. Increases shareholder value
d. Increases leverage
c
The goal of a corporation is:
a. Maximize profits
b. Maximize shareholder value
c. Produce the best product possible
d. Minimize operating expenses
, Page 4 of 59
b
To whom do you complain about stock broker sales practices?
a. SEC
b. FINRA
c. FDIC
d. New York Stock Exchange
b
Which has priority of claims in bankruptcy?
a. Preferred stock holders
b. Common stock holders
c. Bond holders
d. Subordinated debenture holders
c
Which would not affect WACC?
a. Cash Flow Financing
