C214 Financial Management Exam Review 2025: WGU Questions & Answers

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Exam Review Questions & Answers - C214 / C 214

(Latest 2025) : Financial Management - W.G.U

Coupon Rate .....ANSWER.....The interest rate that a company

promises to pay on bonds

Market Rate .....ANSWER.....The interest rate on other

comparable bonds

Par Value .....ANSWER.....The amount payable on maturity of the

bond

Market rate .....ANSWER.....Same as YTM - Yield to Maturity

Gordon Growth Model .....ANSWER.....Assumes stable growth

rates and does not incorporate risk

CAPM Model .....ANSWER.....Allows to determine expected return

on stocks and incorporates risk

How do public companies maximize shareholder value?

.....ANSWER.....By maximizing Earnings Per Share

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How do private companies maximize shareholder value?

.....ANSWER.....By keeping control within the company

Positive credit rating has what effect on capital?

.....ANSWER.....Lowers cost of capital

What is cash flow from operating activities? .....ANSWER.....It is

cash flow generated for sale of products and services

What is the formula for retained earnings? .....ANSWER.....Ending

retained earnings=Beginning retained earnings + Net Income =

Dividends

Is depreciation and salvage value on an asset precise or is it an

estimate? .....ANSWER.....It is an estimate

What is an example of accounting difference

.....ANSWER.....Companies using different accounting methods

What is an example of a timing difference?

.....ANSWER.....Companies using different fiscal years