WGU C214 FINANCIAL MANAGEMENT –
FINAL EXAM WITH CORRECT ACTUAL
QUESTIONS AND CORRECTLY WELL
DEFINED ANSWERS LATEST ALREADY
GRADED A+ 2025 – 2026
What should a company include in its prospectus under the
securities act of 1933? - ANSWERS-The prospectus should include
the following information:
· A description of the company's properties and business
· A description of the security being offered
· Information about executive management
· Financial statements that have been certified by independent
accountants
,How is the expected return from the CAPM model used in financial
decisions? - ANSWERS-Allows to determine the expected return on
stocks and incorporate risks
Define or describe current ratio? - ANSWERS-The Current Ratio is a
measure of short-term liquidity to pay short term obligations
Define a convertible bond - ANSWERS-More than being a type of
bonds, convertibility is a feature that may be added to any bond
type. Convertibility refers to the ability to convert a bond into
equity securities, usually common stock. It gives the investor the
right to trade each bond for a set number of shares of common
stock whenever the investor chooses
What are the requirements of FINRA? - ANSWERS-- FINRA Requires
customers maintain up to date customer records
- You must be a member of FINRA before you can sell investment
products to the public
How does an increase in Accounts receivable impact CFO? -
ANSWERS-An Increase in Accounts receivable will decrease CFO
How does an increase in Accounts payable impact CFO? - ANSWERS-
An Increase in Accounts Payable will increase CFO
,What financial statement is prepared at a point in time - ANSWERS-
Balance Sheet
What financial statements are prepared for a period of time? -
ANSWERS-· Income Statement
· Retained Earnings Statement
· Statement of Cash Flows
Define Efficient Frontier - ANSWERS-Maximizes expected return for
a given level of risk
Where would a risk averse investor fall on the efficient frontier? -
ANSWERS-100% Bonds
Where would a risk-taking investor fall on the efficient frontier? -
ANSWERS-100% Stocks
What is a Beta? - ANSWERS-A Measure of Risk - A Beta 1 is the
average risk of all stocks. Anytime a beta is below 1, it is less risk. If
it is more than 1, it is high risk.
Define efficient market hypothesis as it relates to a firm? -
ANSWERS-For any company to survive, they need to make
profitable decisions. Otherwise, investors will shun their business.
The firm needs to invest where the return is more than the cost.
, What is the intrinsic value of a stock under efficient market
hypothesis? - ANSWERS-The intrinsic value of stock is the present
value of the stock's after tax net cash flows.
Whenever the question states that dividend was paid recently or
was just paid, what must be calculated first? - ANSWERS-Expected
Dividend
For every Bond question, what must be entered? - ANSWERS-FV
must be entered as 1000
PMT must be entered as 1000 x Coupon Rate
What is Capital Budgeting? - ANSWERS-Refers to long term
investment decision making.
Refers to the process used in making investment decisions involving
projects that generate cash flows over a multi-year horizon.
What information is needed for capital budgeting? - ANSWERS-
Initial Outlay
(How much money the company is going to invest in the company
right now)
Differential Annual Cash Flows
(Cash flow that the project will generate year after year)
Terminal Cash Flow
FINAL EXAM WITH CORRECT ACTUAL
QUESTIONS AND CORRECTLY WELL
DEFINED ANSWERS LATEST ALREADY
GRADED A+ 2025 – 2026
What should a company include in its prospectus under the
securities act of 1933? - ANSWERS-The prospectus should include
the following information:
· A description of the company's properties and business
· A description of the security being offered
· Information about executive management
· Financial statements that have been certified by independent
accountants
,How is the expected return from the CAPM model used in financial
decisions? - ANSWERS-Allows to determine the expected return on
stocks and incorporate risks
Define or describe current ratio? - ANSWERS-The Current Ratio is a
measure of short-term liquidity to pay short term obligations
Define a convertible bond - ANSWERS-More than being a type of
bonds, convertibility is a feature that may be added to any bond
type. Convertibility refers to the ability to convert a bond into
equity securities, usually common stock. It gives the investor the
right to trade each bond for a set number of shares of common
stock whenever the investor chooses
What are the requirements of FINRA? - ANSWERS-- FINRA Requires
customers maintain up to date customer records
- You must be a member of FINRA before you can sell investment
products to the public
How does an increase in Accounts receivable impact CFO? -
ANSWERS-An Increase in Accounts receivable will decrease CFO
How does an increase in Accounts payable impact CFO? - ANSWERS-
An Increase in Accounts Payable will increase CFO
,What financial statement is prepared at a point in time - ANSWERS-
Balance Sheet
What financial statements are prepared for a period of time? -
ANSWERS-· Income Statement
· Retained Earnings Statement
· Statement of Cash Flows
Define Efficient Frontier - ANSWERS-Maximizes expected return for
a given level of risk
Where would a risk averse investor fall on the efficient frontier? -
ANSWERS-100% Bonds
Where would a risk-taking investor fall on the efficient frontier? -
ANSWERS-100% Stocks
What is a Beta? - ANSWERS-A Measure of Risk - A Beta 1 is the
average risk of all stocks. Anytime a beta is below 1, it is less risk. If
it is more than 1, it is high risk.
Define efficient market hypothesis as it relates to a firm? -
ANSWERS-For any company to survive, they need to make
profitable decisions. Otherwise, investors will shun their business.
The firm needs to invest where the return is more than the cost.
, What is the intrinsic value of a stock under efficient market
hypothesis? - ANSWERS-The intrinsic value of stock is the present
value of the stock's after tax net cash flows.
Whenever the question states that dividend was paid recently or
was just paid, what must be calculated first? - ANSWERS-Expected
Dividend
For every Bond question, what must be entered? - ANSWERS-FV
must be entered as 1000
PMT must be entered as 1000 x Coupon Rate
What is Capital Budgeting? - ANSWERS-Refers to long term
investment decision making.
Refers to the process used in making investment decisions involving
projects that generate cash flows over a multi-year horizon.
What information is needed for capital budgeting? - ANSWERS-
Initial Outlay
(How much money the company is going to invest in the company
right now)
Differential Annual Cash Flows
(Cash flow that the project will generate year after year)
Terminal Cash Flow
