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WGU Financial-Management Exam Syllabus Topics:
| Section | Objectives |
|---|---|
| Topic 1: Working Capital Management | - Current Asset Management
|
| Topic 2: Financial Management Concepts | - Financial Markets and Institutions
|
| Topic 3: Cost of Capital and Capital Structure | - Cost of Capital
|
| Topic 4: Time Value of Money | - Bond and Stock Valuation
|
| Topic 5: Capital Budgeting | - Decision Criteria
|
| Topic 6: Financial Statement Analysis | - Ratio Analysis
|
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
Correct Answer: B 🗳️
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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.
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
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.
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.
Correct Answer: C 🗳️
Explanation: Only visible for ActualVCE members. You can sign-up / login (it's free).
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