WGU C213 FINAL EXAM 2026 UPDATED
PRACTICE QUESTIONS AND SOLUTIONS
◉ If a firm cannot access markets sufficiently to meet their DFN,
what strategies might they use?
a. Slow sales growth
b. Lower dividend payout
c. Increase the net margin
d. All of the above. Answer: d
◉ Dodd-Frank regulates which segment of the U.S. Economy?
a. Fannie Mae and Freddie Mac (Housing financing)
b. Banking Industry
c. Multi-level Marketing Industry
d. Automobile Industry Answer: b
◉ Which is not true of both stocks and bonds
a. Market value derived from expected cash flows
b. Market value varies over time
c. Have voting rights
d. Trade in both primary and secondary markets Answer: c
,◉ The value of a corporation is best measured by
a. Equity on the Balance Sheet
b. Assets minus Liabilities on the Balance Sheet
c. Market capitalization
d. Its book value Answer: c
◉ Which is not a component of the DuPont formula?
a. Net Income to Sales
b. Debt to Equity Ratio
c. Sales to Asset Ratio
d. Assets to Equity Ratio Answer: b
◉ What metric converts FV to PV?
a. The discount rate
b. Time
c. The PE ratio
d. None of the above Answer: a
◉ The interest rate on a corporate bond does not reflect
a. Risk
b. Inflation
,c. Face Value
d. U.S. Treasury rates Answer: c
◉ PV ordinarily is less than FV. What would cause the opposite?
a. Compounding
b. Negative interest rates
c. The exchange rate
d. The Federal Reserve Answer: b
◉ Which would likely have the lowest price?
a. 3-month commercial paper
b. Zero coupon bond
c. 5-year Treasury note
d. AAA corporate note Answer: b
◉ Junk bonds are those whose rating is below
a. AAA
b. AA
c. A
d. BBB Answer: d
◉ Diversification protects against
, a. Systematic risk
b. Market risk
c. Idiosyncratic risk
d. Inflation risk Answer: c
◉ Which is the best diversification for stock investment?
a. Auto company and grocery chain
b. Walmart and Costco
c. Home buider and auto company
d. Boeing and Lockheed Answer: a
◉ If you are assessing a firm's ability to meet short term obligations,
you would use which ratio?
a. Debt ratio
b. Quick ratio
c. Gross margin
d. Financial leverage Answer: b
◉ To assess firm efficiency, which ratio would you use?
a. Asset turnover
b. Operating margin
c. Debt ratio
PRACTICE QUESTIONS AND SOLUTIONS
◉ If a firm cannot access markets sufficiently to meet their DFN,
what strategies might they use?
a. Slow sales growth
b. Lower dividend payout
c. Increase the net margin
d. All of the above. Answer: d
◉ Dodd-Frank regulates which segment of the U.S. Economy?
a. Fannie Mae and Freddie Mac (Housing financing)
b. Banking Industry
c. Multi-level Marketing Industry
d. Automobile Industry Answer: b
◉ Which is not true of both stocks and bonds
a. Market value derived from expected cash flows
b. Market value varies over time
c. Have voting rights
d. Trade in both primary and secondary markets Answer: c
,◉ The value of a corporation is best measured by
a. Equity on the Balance Sheet
b. Assets minus Liabilities on the Balance Sheet
c. Market capitalization
d. Its book value Answer: c
◉ Which is not a component of the DuPont formula?
a. Net Income to Sales
b. Debt to Equity Ratio
c. Sales to Asset Ratio
d. Assets to Equity Ratio Answer: b
◉ What metric converts FV to PV?
a. The discount rate
b. Time
c. The PE ratio
d. None of the above Answer: a
◉ The interest rate on a corporate bond does not reflect
a. Risk
b. Inflation
,c. Face Value
d. U.S. Treasury rates Answer: c
◉ PV ordinarily is less than FV. What would cause the opposite?
a. Compounding
b. Negative interest rates
c. The exchange rate
d. The Federal Reserve Answer: b
◉ Which would likely have the lowest price?
a. 3-month commercial paper
b. Zero coupon bond
c. 5-year Treasury note
d. AAA corporate note Answer: b
◉ Junk bonds are those whose rating is below
a. AAA
b. AA
c. A
d. BBB Answer: d
◉ Diversification protects against
, a. Systematic risk
b. Market risk
c. Idiosyncratic risk
d. Inflation risk Answer: c
◉ Which is the best diversification for stock investment?
a. Auto company and grocery chain
b. Walmart and Costco
c. Home buider and auto company
d. Boeing and Lockheed Answer: a
◉ If you are assessing a firm's ability to meet short term obligations,
you would use which ratio?
a. Debt ratio
b. Quick ratio
c. Gross margin
d. Financial leverage Answer: b
◉ To assess firm efficiency, which ratio would you use?
a. Asset turnover
b. Operating margin
c. Debt ratio
