WGU C214 OBJECTIVE ASSESSMENT AND
PRE ASSESSMENT EXAM 2025/2026 BANK /
ACCURATE ACTUAL EXAM WITH
FREQUENTLY TESTED QUESTIONS AND
STUDY GUIDE / EXPERTLY CRAFTED AND
VERIFIED FOR GUARANTEED
PASS/ALREADY GRADED A+!!!
What is the most effective use of financial statements in
valuing a stock?
a. Use the book value of equity on the balance sheet
b. Use GAAP earnnings
c. Use data to estimate future earnings
d. Read the footnotes - ....ANSWER...c
1
,If market interest rates rise, what impact does it have on a
given bond?
a. Its price decreases
b. It will have a discount price
c. No impact since the coupon rate is fixed
d. Its price increases - ....ANSWER...a
What impact did the recent corporate tax cut have on a
firm's WACC?
a. It decreased WACC
b. It increased WACC
c. No impact since WACC depend on firm risk
d. None of the above - ....ANSWER...b
Why do firms often use "sensitivity" tests in analyzing
investment projects
a. Required by the SEC
b. Uncertainty of forecast assumptions
c. Auditors require it.
d. Required section of financial statements -
2
,....ANSWER...b
If debt is less costly than equity, why don't firms
maximize debt use?
a. Excessive debt increases risk of bankruptcy
b. Restricted by Federal tax regulations
c. It reduces the benefits of financial leverage
d. It increases operating leverage - ....ANSWER...a
Why does a firm's investment opportunities affect it
dividend payout ratio?
a. Maximization of shareholder wealth strategy
b. Limited access to market financing
c. Attempts to increase stock price
d. All of the above - ....ANSWER...d
If two companies have earnings of $2,000,000, and
Company X has a multiple of 1.2 and Company Z has a
multiple of 2.0, what can we estimate about the value of
each company?
a. The value is the same
3
, b. The value of Company X is higher
c. The value of Company Z is higher
d. The relative value can't be determined - ....ANSWER...c
If a company produces and sells a product only in the
U.S., what international developments may affect its
sales?
a. Fluctuating exchange rates
4
PRE ASSESSMENT EXAM 2025/2026 BANK /
ACCURATE ACTUAL EXAM WITH
FREQUENTLY TESTED QUESTIONS AND
STUDY GUIDE / EXPERTLY CRAFTED AND
VERIFIED FOR GUARANTEED
PASS/ALREADY GRADED A+!!!
What is the most effective use of financial statements in
valuing a stock?
a. Use the book value of equity on the balance sheet
b. Use GAAP earnnings
c. Use data to estimate future earnings
d. Read the footnotes - ....ANSWER...c
1
,If market interest rates rise, what impact does it have on a
given bond?
a. Its price decreases
b. It will have a discount price
c. No impact since the coupon rate is fixed
d. Its price increases - ....ANSWER...a
What impact did the recent corporate tax cut have on a
firm's WACC?
a. It decreased WACC
b. It increased WACC
c. No impact since WACC depend on firm risk
d. None of the above - ....ANSWER...b
Why do firms often use "sensitivity" tests in analyzing
investment projects
a. Required by the SEC
b. Uncertainty of forecast assumptions
c. Auditors require it.
d. Required section of financial statements -
2
,....ANSWER...b
If debt is less costly than equity, why don't firms
maximize debt use?
a. Excessive debt increases risk of bankruptcy
b. Restricted by Federal tax regulations
c. It reduces the benefits of financial leverage
d. It increases operating leverage - ....ANSWER...a
Why does a firm's investment opportunities affect it
dividend payout ratio?
a. Maximization of shareholder wealth strategy
b. Limited access to market financing
c. Attempts to increase stock price
d. All of the above - ....ANSWER...d
If two companies have earnings of $2,000,000, and
Company X has a multiple of 1.2 and Company Z has a
multiple of 2.0, what can we estimate about the value of
each company?
a. The value is the same
3
, b. The value of Company X is higher
c. The value of Company Z is higher
d. The relative value can't be determined - ....ANSWER...c
If a company produces and sells a product only in the
U.S., what international developments may affect its
sales?
a. Fluctuating exchange rates
4
