WGU C214 PRE-ASSESSMENT - SET 2 QUESTIONS WITH CORRECT ANSWERS 2025

WGU C214 PRE-ASSESSMENT - SET 2 QUESTIONS
WITH CORRECT ANSWERS 2025
AQbrokerQisQconsideringQpurchasingQcommonQstockQinQaQcompanyQthatQhasQaverageQbutQconsistentQopera
tingQperformance.Q



WhichQfactorQshouldQleadQtheQbrokerQtoQpurchaseQsharesQinQthisQcompany?Q-QCORRECTQANSWERQ-
TheQcurrentQpriceQofQtheQstockQisQ25%QbelowQitsQintrinsicQvalue.



AQbrokerQisQconsideringQbuyingQaQdividend-
payingQstock.QTheQdividendQwillQbeQpaidQatQtheQendQofQtheQyear.QTheQanalystQconsensusQisQtheQstockQwillQ
beQworthQ$36QinQoneQyear.QTheQcompanyQpaysQaQ$2.25QannualQdividendQ(exQdividendQdateQisQnotQaQconsi
deration,QtheQbrokerQwillQreceiveQtheQfullQ$2.25),QandQtheQbrokerQexpectsQaQ12%QrateQofQreturnQ



WhatQisQtheQhighestQpriceQtheQbrokerQshouldQbeQwillingQtoQpayQforQtheQstock?Q-QCORRECTQANSWERQ-
NQ=Q1

I/YQ=Q12

PMT=Q2.25

FVQ=Q36

CPTQPVQ=Q$34.15



AQpersonQbuysQsharesQofQaQcompanyQatQ$45.QTheyQrecentlyQpaidQaQ$2QannualQdividendQwhichQisQexpected
QtoQgrowQbyQ10%QperQyear.Q




WhatQisQtheQexpectedQreturnQperQyear?Q-QCORRECTQANSWERQ-STEPQ1Q=QCALCULATEQEXPECTEDQDIVIDEND

2Q*Q(Q1Q+Q0.1000Q)Q=Q2.2000



STEPQ2Q=QCALCULATEQEXPECTEDQRETURN

(Q2.2000Q/Q45Q)Q+Q0.1000Q=Q0.1489Q



0.1489QORQ14.9%

, TheQfigureQbelowQrepresentsQtheQlevelsQofQmarketQefficiency:Q



(Image)Q



WhichQinvestmentQoptionQisQlessQdesirableQforQaQprudentQinvestor?Q-QCORRECTQANSWERQ-E



TheQmarketQrateQofQreturnQisQ9%.QTheQfaceQvalueQofQtheQbondQisQ$1000,QtheQcouponQrateQisQ9%QwithQann
ualQcompounding,QandQtheQbondQmaturesQinQ10Qyears.Q



WhatQisQtheQvalueQofQtheQbond?Q-QCORRECTQANSWERQ-FVQ=Q1000

PMTQ=Q1000*9%Q(couponQrate)Q=Q90

NQ=Q10

I/YQ=Q9Q(Yield/MarketQRR/ExpectedQRR)



CPTQPVQ=Q1,000



WhichQstatementQisQtrueQaboutQfluctuationsQinQbondQprices?Q-QCORRECTQANSWERQ-
WhenQmarketQinterestQratesQfluctuate,QtheQbondQcouponQrateQisQunchanged.



AQcompanyQissuesQbondsQatQaQmarketQpriceQofQ$925.QTheQfaceQvalueQisQ$1,000.QTheQbondsQmatureQinQ10Q
years,QandQtheQcouponQrateQisQ6%QcompoundedQsemiannually.Q



WhatQisQtheQyieldQtoQmaturityQ(YTM)QonQtheQcompany'sQbonds?Q-QCORRECTQANSWERQ-FVQ=Q1000

PMTQ=Q1000*6%Q(couponQrate)Q=Q60/2Q(semiannually)Q=Q30

NQ=Q10Q*Q2Q(semiannually)

PVQ=Q-925Q(Yield/MarketQRR/ExpectedQRR)



CPTQI/YQ=Q3.5291Q*Q2Q=Q7.0582QorQ7.06%