WGU C214 FINANCIAL MGMT PASS THE OA QUESTIONS WITH CORRECT ANSWERS 2025

WGU C214 FINANCIAL MGMT PASS THE OA QUESTIONS
WITH CORRECT ANSWERS 2025
CharacteristicsAofApreferredAstockAincludesA-ACORRECTAANSWERA--dividendsAinAarrears

-dividendsAareAcumulative

-higherApayoffAclaimAinAaABKA(hasAfirstAdibsAinAaABK)

-consideredA"hybrid"A(partAstock/partAbond)

-noAfixedAmaturityAdate

-noAvotingArights

-canAskipAdividendApayments

-dividendsAdon'tAchangeAyear-after-year

-usedAinAstartAupsA(IPO)



PreferredAstockAdividendsA-ACORRECTAANSWERA-
canAgoAwithoutApaymentAandApayAinAarrearsAtheAfollowingAyear



CharacteristicsAofAcommonAstockAareA-ACORRECTAANSWERA--votingArights

-noAmaturityAdate

-corporateAgovernance

-lowerApayoffAclaimAinABK

-variableAreturns

-unlimitedAearningsApotential

-earningsAareAinAdividendsA&AtheAincreaseAinApriceAofAstock



NewAstartAupAventuresAoftenAissueA-ACORRECTAANSWERA-preferredAstockA(inAanAIPO)



WhatAstockAisAconsideredAaAhybridA-ACORRECTAANSWERA-preferredAstock



OneAthingAcommonAstockAandApreferredAstockAhaveAinAcommonAisA-ACORRECTAANSWERA-
bothAhaveAnoAmaturityAdate

,WhichAtypeAofAsecurityAhasAvotingArightsA-ACORRECTAANSWERA-commonAstock



DebtAcovenantsAandArestrictionsAhelpAtoAensureAthatA-ACORRECTAANSWERA-
managementAisAmeetingAbondAandAshareholderAexpectations

NOTE:AcovenantsAareApromisesAmeantAtoAbeAkept



WhatAisAtrueAregardingAbondsA-ACORRECTAANSWERA--
whenAbondAmatures,AbondholderAgetsAlumpAsumAback

-couponArateAdoesn'tAchange

-maturityAisAinAyears

-PARAvalueAisAtypicallyA$1000

-FutureAvalueA(sameAasAPAR)AisAtypicallyA$1000



BondAsellsAatAfaceAvalueAwhenA-ACORRECTAANSWERA-requiredArateAofAreturnAisAequalAtoAtheAcouponArate



WhyAareAbondsAtheAprimaryAmethodAforAraisingAcapitalA-ACORRECTAANSWERA-
becauseAbondsAremoveAtheAintermediaryAcosts

NOTE:AIPO'sArequireAanAintermediaryAknownAasAaAsyndicateA-
AaAgroupAofAbanksAunderwritingAtheAsecurityAissue




WhatAtypeAofAbondAcanAbeAtradedAforAstockA-ACORRECTAANSWERA-convertibleAbonds



WhatAisAtheAinterestArateAforAannualApaymentsAofAaAbondAknownAasA-ACORRECTAANSWERA-
theAcouponArate

NOTE:AcouponArateAisAtheAestablishedAinterestArateAforAtheAlifeAofAtheAbondAandAwillAremainAunchanged



CouponArateAisAtheAestablishedArateAofAtheAbondAandAshouldA-ACORRECTAANSWERA-neverAchange



DebenturesAareA-ACORRECTAANSWERA-securedAbonds

NOTE:AdebenturesAareAaAdebtAinstrumentA(bond)AissuedAtoAraiseAcash,AsecuredAagainstAaAcompany'sAasset
sAandAbackedAbyAcredit,AtransferableAbyAtheAholder,AandAmayAalsoAbeAunsecured

, SecuredAloanA-ACORRECTAANSWERA-hasAcollateralAlikeAaAmortgage



TheAamountArepaidAatAtheAexpirationAdateAofAaAbondAisA-ACORRECTAANSWERA-PARAvalue

NOTE:AexpirationAdateAisAalsoAknownAasAmaturityAdateAPARA(orAFaceAValue)AisAtypicallyA$1000



DurationAmeasuresA-ACORRECTAANSWERA-
theAmarketAriskAofAaAbondAandAisAtheApercentageAdropAinApriceAcausedAbyAaA1%AincreaseAinAyieldA(rate)

NOTE:AmeasurementAofAtheAdropAinApriceAafterAaArateAincrease



MaturityAofAbondsAisAcalculatedAinA-ACORRECTAANSWERA-years



AAbondApremiumAoccursAwhenA-ACORRECTAANSWERA-
bondsAareAissuedAforAanAamountAgreaterAthanAtheirAfaceAorAmaturityAamount;AcausedAbyAtheAbondsAhavin
gAaAstatedAinterestArateAthatAisAhigherAthanAtheAmarketAinterestArateAforAsimilarAbonds



JunkABondsAareA-ACORRECTAANSWERA-highAyieldAbondsAwithoutAanyAstability



"Leveraged"AresultsAinA-ACORRECTAANSWERA-
havingAmoreAdebtA(bonds)AthanAequityA(stock)AandAlowerAstockAprices

NOTE:ArecallAthatAdebtAisAsaferAandAlevelsAoutAriskAinAaAportfolio



InAcurrentAassets,AinventoryAisAtheA-ACORRECTAANSWERA-LEASTAliquidAofAcurrentAassets

NOTE:AcurrentAassetsAtakeAlessAthanA12AmonthsAtoAmakeAliquid



NetAfixedAassetsAareA-ACORRECTAANSWERA-
longAtermAassetsAsuchAasAbuildings,Aland,Aequipment,Amachinery

NOTE:AassetsAthatAareAnotAcurrent



A/PArepresentsAmoneyApaidAtoA-ACORRECTAANSWERA-
suppliersAforAwhatAisAboughtAonAcreditAandAamountAowedAbyAaAbusinessAtoAsuppliersAbyAagreement