WGU C214 Financial Management Exam 2025/2026 – 150+ Verified Questions and Correct Answers on CAPM, WACC, Leverage, Bond Valuation, Cash Flow, and Risk Analysis

This fully detailed exam study guide provides over 150 professionally verified questions and answers aligned with the WGU C214 – Financial Management course for the 2025/2026 term. Covering both conceptual finance theory and practical application, this resource equips students to ace their performance-based assessments and multiple-choice final. The document is structured around core learning objectives found in C214, emphasizing critical exam-tested areas of finance, corporate strategy, investment evaluation, and capital management. Major topics include: Corporate Finance & Accounting Principles: Revenue recognition, matching principle, depreciation, net working capital, income vs. cash flow Capital Budgeting Techniques: Net Present Value (NPV), Internal Rate of Return (IRR), payback period, annuity vs. annuity due, free cash flow, cost of capital Financial Ratios & Analysis: DuPont Analysis, ROE, ROA, quick ratio, cash ratio, working capital ratios, financial leverage Valuation & Securities: Intrinsic value, bond pricing, yield to maturity, convertible bonds, APY vs. APR, stock valuation (Gordon Growth Model) Risk & Return Models: CAPM, Beta, Efficient Frontier, idiosyncratic risk, market risk premium, Efficient Market Hypothesis (EMH) Market Structures & Securities: Primary vs. secondary market, auction vs. dealer markets, preferred stock, municipal vs. Treasury bonds International Finance & Hedging: Exchange rate risk, global competition, hedging strategies Cash Flow Statements & Financial Forecasting: Cash flow operations vs. investing, operating balances, sales forecasting, spontaneous vs. discretionary accounts Regulatory Bodies & Ethics: SEC oversight, Sarbanes-Oxley Act, agency costs, firm transparency Capital Structure & WACC: Weighted Average Cost of Capital calculation, debt vs. equity financing, credit rating effects, leverage trade-offs Behavioral Finance Considerations: Loss aversion, investor psychology, market reactions to news Best suited for: WGU Business and Accounting students enrolled in C214 or equivalent corporate finance courses Finance majors and adult learners preparing for business and finance assessments Students pursuing certifications (e.g., CFA Level 1 foundational concepts, financial analyst exams) Learners in online or self-paced degree programs who require well-organized, exam-focused materials The guide is written in a high-yield question-and-answer format and is ideal for timed review, flashcard practice, and mastering the calculation-heavy and theoretical components of the C214 exam. Keywords: WGU C214, financial management exam, WACC calculation, bond valuation, stock intrinsic value, CAPM questions, DuPont analysis, corporate finance quiz, net present value, risk-return tradeoff