WGU C214 WGU Exam Cram 2023 with complete solutions Graded A+

WGU C214 WGU Exam Cram 2023 with complete solutions Graded A+ Pt - ANSis the sold price Pt-1 - ANSis the bought price CFt - ANSis the cash flow (coupons for bonds; dividends for stocks). Dollar Returns - ANS= Pt - Pt-1 + CFt Cash Flow from Investing (CFI) - ANS= Change in Net PP&E + Depreciation Expense Net PP&E - ANS= Gross PP&E - Accumulated Depreciation With the assumption of no asset disposals, CFI will be equal to - ANS1) change in Gross PP&E or 2) Change in Net PP&E plus depreciation expense. Dividends - ANS= (Old RE + Net Income) - New RE Change in RE - ANS= NI -dividends CFF - ANS= change in notes payable + change in long-term debt - dividends (assuming no other relevant changes) FCFF - ANS= EBIT (1-tax rate) + Depreciation - CAPEX - Increases in NWC EBIT - ANS= Earnings before interest and taxes CAPEX - ANS= Capital expenditure on PP&E; frequently measured as CFI NWC - ANS= Net working capital (current assets - current liabilities) changes FCFE - ANS= NI + Depreciation - CAPEX - Increases in NWC + Increases in Debt TAT Total Asset Turnover = Sales / Total Assets: - ANSLiterally, this ratio measures how many dollars in sales the firm generates per dollar of assets. TAT of three indicates that for - ANSevery $1 of assets, the firm is generating $3 in sales. TIE The Times Interest Earned Ratio = EBIT / Interest Expense: - ANSOperating expense/Interest Expense r - ANS= Real Risk-Free Rate + Inflation + Risk Premium r = (definition for TMV) - ANSNominal discount rate (note: nominal means inflation is included) Real risk-free rate - ANS= The rate e