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WGU Financial-Management Exam Syllabus Topics:

SectionObjectives
Topic 1: Working Capital Management- Current Asset Management
  • 1. Receivables Management
  • 2. Cash Management
  • 3. Inventory Management
- Current Liabilities Management
  • 1. Short-term Financing
  • 2. Trade Credit
Topic 2: Financial Management Concepts- Financial Markets and Institutions
  • 1. Financial Markets
  • 2. Financial Institutions
  • 3. Interest Rate Levels
- Financial Environment
  • 1. Forms of Business Organization
  • 2. Objectives of the Financial Manager
  • 3. Agency Problem and Corporate Governance
Topic 3: Cost of Capital and Capital Structure- Cost of Capital
  • 1. Cost of Equity (CAPM, DCF)
  • 2. Cost of Debt
  • 3. Weighted Average Cost of Capital (WACC)
- Leverage and Capital Structure
  • 1. Optimal Capital Structure
  • 2. Operating Leverage
  • 3. Financial Leverage
Topic 4: Time Value of Money- Bond and Stock Valuation
  • 1. Valuation of Common Stock
  • 2. Valuation of Bonds
  • 3. Valuation of Preferred Stock
- Present and Future Value
  • 1. Present Value of a Lump Sum
  • 2. Future Value of a Lump Sum
  • 3. Annuities (Ordinary and Due)
Topic 5: Capital Budgeting- Decision Criteria
  • 1. Internal Rate of Return (IRR)
  • 2. Payback Period
  • 3. Modified IRR (MIRR)
  • 4. Net Present Value (NPV)
- Cash Flow Estimation
  • 1. Incremental Cash Flows
  • 2. Depreciation Methods
Topic 6: Financial Statement Analysis- Ratio Analysis
  • 1. Profitability Ratios
  • 2. Asset Management Ratios
  • 3. Market Value Ratios
  • 4. Debt Management Ratios
  • 5. Liquidity Ratios
- Financial Statement Basics
  • 1. Statement of Cash Flows
  • 2. Income Statement
  • 3. Balance Sheet

WGU Financial Management VBC1 Sample Questions:

A company is looking to invest in new machinery that will enhance overall efficiency. The projected assets needed for the project are $590,000, the projected liabilities are $431,000, and the projected equity is $49,000.
What is the discretionary financing need (DFN)?

  • A. $159,000
  • B. $110,000
  • C. $382,000
  • D. $10,000
Reveal Solution  Discussion  0

Correct Answer: B  🗳️

Explanation: Only visible for ActualVCE members. You can sign-up / login (it's free).

What is a potential drawback of lowering the annual dividend payment?

  • A. It could possibly increase the company's net margin.
  • B. It might lead to higher sales growth for the company.
  • C. It can lead to an immediate increase in the company's stock price.
  • D. It may cause the company's stockholders to react negatively.
Reveal Solution  Discussion  0

Correct Answer: D  🗳️

Explanation: Only visible for ActualVCE members. You can sign-up / login (it's free).

Synesthor is a company developing artificial intelligence (AI) to improve the searchability of medical research and make it easier for physicians to access the best knowledge for healthcare. As the company is setting its key objectives for the next period, it recognizes there are many stakeholders it serves.
If Synesthor focuses on what has traditionally been the primary goal of most companies, where will Synesthor center its efforts?

  • A. Increasing employee satisfaction
  • B. Maximizing shareholder value
  • C. Focusing solely on customer satisfaction
  • D. Expanding the company globally
Reveal Solution  Discussion  0

Correct Answer: B  🗳️

Explanation: Only visible for ActualVCE members. You can sign-up / login (it's free).

How does the use of historical returns to estimate the cost of common equity differ from the Gordon growth model?

  • A. It considers the future growth rate of dividends.
  • B. It uses market risk as the primary factor.
  • C. It is based on past stock performance.
  • D. It focuses on the company's dividend policy.
Reveal Solution  Discussion  0

Correct Answer: C  🗳️

Explanation: Only visible for ActualVCE members. You can sign-up / login (it's free).

What is a drawback of using the Gordon growth model for estimating the cost of common equity?

  • A. It requires extensive market data analysis.
  • B. It is too complex for general use.
  • C. It applies only to companies with stable dividend policies.
  • D. It emphasizes short-term financial performance.
Reveal Solution  Discussion  0

Correct Answer: C  🗳️

Explanation: Only visible for ActualVCE members. You can sign-up / login (it's free).

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