WGU D362 – Corporate Finance Pre – Assessment | 67 Actual
Questions and Answers | 2026/27 Newest Update | 100% correct
Correct
Incorrect
Questions and Answers Graded A+
1 of 67
Term
An entrepreneur has started a coffee shop that has become popular
locally and wants to maximize returns. The entrepreneur prefers to
avoid taking on extra debt to expand and prefers to operate
independently.
How should the entrepreneur grow profits given the entrepreneur's
limitations and benefits?
Give this one a try later!
, The use of the trade-off theory will
help to establish the most optimal Annually
debt-to-equity ratio
By becoming a franchisor and
By increasing the likelihood of
charging royalties from
bankruptcy
franchises
Don't know?
2 of 67
Term
A company is considering a project with an initial cost of $15,000 and
expected net future cash flows of $7,500 per year for the next three
years. The project's net present value (NPV) is $4,864.
What is the company's cost of capital for this project
Give this one a try later!
6.5% 8.2%
5.0% 7.9%
Don't know?
3 of 67
,Term
A publicly traded company has a beta of 2.25. Thirty-year Treasury
bonds have an effective annual yield of 2.42%. The market risk
premium is 7.18%.
What is the company's cost of common stock based on the capital
asset pricing model (CAPM)
Give this one a try later!
13.53% 6.5%
18.58% 11.50%
Don't know?
4 of 67
Term
A beverage company is considering launching a new vitamin water.
The initial cost of the project is $375,000, and the expected future
net cash flows are -$71,000 in Year 1, $163,350 in Year 2, and $326,127
in Year 3. The company is applying a 15.00% discount rate.
What is the net present value (NPV) for this project
Give this one a try later!
$1082 -$98,789
, $925 $636
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5 of 67
Term
A company is planning to offer zero-coupon bonds with a $1,000
face value, a four-year period to maturity, and a 12.00% interest rate.
Which price will the company receive for the bonds
Give this one a try later!
$580 $750
$820 $636
Don't know?
6 of 67
Term
Adjusted Financial Statements
Company Plairtrack
Revenue $250,000
Variable costs $162,500
Questions and Answers | 2026/27 Newest Update | 100% correct
Correct
Incorrect
Questions and Answers Graded A+
1 of 67
Term
An entrepreneur has started a coffee shop that has become popular
locally and wants to maximize returns. The entrepreneur prefers to
avoid taking on extra debt to expand and prefers to operate
independently.
How should the entrepreneur grow profits given the entrepreneur's
limitations and benefits?
Give this one a try later!
, The use of the trade-off theory will
help to establish the most optimal Annually
debt-to-equity ratio
By becoming a franchisor and
By increasing the likelihood of
charging royalties from
bankruptcy
franchises
Don't know?
2 of 67
Term
A company is considering a project with an initial cost of $15,000 and
expected net future cash flows of $7,500 per year for the next three
years. The project's net present value (NPV) is $4,864.
What is the company's cost of capital for this project
Give this one a try later!
6.5% 8.2%
5.0% 7.9%
Don't know?
3 of 67
,Term
A publicly traded company has a beta of 2.25. Thirty-year Treasury
bonds have an effective annual yield of 2.42%. The market risk
premium is 7.18%.
What is the company's cost of common stock based on the capital
asset pricing model (CAPM)
Give this one a try later!
13.53% 6.5%
18.58% 11.50%
Don't know?
4 of 67
Term
A beverage company is considering launching a new vitamin water.
The initial cost of the project is $375,000, and the expected future
net cash flows are -$71,000 in Year 1, $163,350 in Year 2, and $326,127
in Year 3. The company is applying a 15.00% discount rate.
What is the net present value (NPV) for this project
Give this one a try later!
$1082 -$98,789
, $925 $636
Don't know?
5 of 67
Term
A company is planning to offer zero-coupon bonds with a $1,000
face value, a four-year period to maturity, and a 12.00% interest rate.
Which price will the company receive for the bonds
Give this one a try later!
$580 $750
$820 $636
Don't know?
6 of 67
Term
Adjusted Financial Statements
Company Plairtrack
Revenue $250,000
Variable costs $162,500
