WGU Financial-Management Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| Risk and Return | 12% | - Beta and Capital Asset Pricing Model - Systematic vs unsystematic risk - Portfolio risk and diversification |
| Valuation of Securities | 15% | - Cost of capital components - Stock valuation: dividend growth model, CAPM - Bond valuation, yield to maturity, risk characteristics |
| Time Value of Money | 18% | - Effective vs nominal interest rates - Discounted cash flow valuation - Present value, future value, annuities, perpetuities |
| Capital Structure and Financing | 10% | - Leverage and cost of capital - Dividend policy and payout decisions |
| Financial Markets and Corporate Objectives | 15% | - Role of financial institutions - Goal of the firm: shareholder wealth maximization - Types of financial markets and instruments |
| Financial Statement Analysis | 20% | - Income statement, balance sheet, cash flow statement - Common-size and trend analysis - Ratio analysis: liquidity, profitability, solvency, efficiency |
| Capital Budgeting | 10% | - Cash flow estimation and project evaluation - NPV, IRR, payback period, profitability index |
WGU Financial Management VBC1 Sample Questions:
1. What is a benefit of a firm extending credit to customers in a competitive market?
A) Reduced customer base due to credit terms
B) Immediate cash inflows from sales
C) Increased sales to non-cash buyers
D) Decreased sales due to increased prices
2. What is the difference between market orders and limit orders?
A) Market orders execute at a fixed price, while limit orders fluctuate in price.
B) Market orders are used for selling stocks, while limit orders are used for buying stocks.
C) Market orders are price-sensitive, while limit orders are time-sensitive.
D) Market orders execute at the current price, while limit orders execute at a specified price.
3. In the capital asset pricing model (CAPM), what does a beta (#) greater than 1 signify for a portfolio?
A) The portfolio has less risk than the market.
B) The portfolio will always outperform the market.
C) The portfolio is expected to move in the opposite direction of the market.
D) The portfolio has more risk than the market.
4. What is a holding cost in inventory management?
A) The discount given to customers for bulk purchases of inventory
B) The time incurred until accounts receivable are collected from inventory sold
C) The purchase of equipment to turn material into finished inventory
D) The expense associated with the potential damage or price changes of inventory
5. A financial analyst is trying to understand the return that shareholders of a stock receive through dividend payments. The analyst is given the following information:
Company Information-Previous Year
* Revenue: $500,000
* Net Income: $50,000
* Change in Retained Earnings: $30,000
* Change in Total Assets: $40,000
What is the amount of dividends paid during the previous year to shareholders?
A) $40,000
B) $20,000
C) $50,000
D) $30,000
Solutions:
| Question # 1 Answer: C | Question # 2 Answer: D | Question # 3 Answer: D | Question # 4 Answer: D | Question # 5 Answer: B |
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