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WGU Financial-Management Exam Syllabus Topics:
| Section | Objectives |
|---|---|
| Topic 1: Financial Statement Analysis | - Cash flow analysis - Balance sheet and income statement interpretation - Financial ratios |
| Topic 2: Risk and Return | - Portfolio risk and diversification - Expected return |
| Topic 3: Cost of Capital and Valuation | - Bond and stock valuation basics - Weighted average cost of capital (WACC) |
| Topic 4: Capital Budgeting | - Internal rate of return (IRR) - Payback period analysis - Net present value (NPV) |
| Topic 5: Time Value of Money | - Present and future value calculations - Annuities and perpetuities |
WGU Financial Management VBC1 Sample Questions:
1. 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) Maximizing shareholder value
B) Expanding the company globally
C) Focusing solely on customer satisfaction
D) Increasing employee satisfaction
2. What is the relationship between the length of the cash cycle and the amount of cash a firm needs to operate?
A) Companies must keep more cash on hand if they maintain a longer cash cycle.
B) A longer cash cycle reduces the need for operational cash due to increased efficiency.
C) Shorter cash cycles require more cash to handle rapid transactions.
D) The cash cycle length has no impact on operational cash needs.
3. What is a primary benefit of maintaining inventory?
A) Reduces a company's storage costs
B) Allows companies to meet customer demand
C) Decreases the cost of goods sold
D) Increases the cash conversion cycle
4. A company has just increased its dividend payout ratio.
What effect will this have on the company's sustainable growth rate?
A) The sustainable growth rate will remain the same because the increase in the dividend payout ratio will be offset by a decrease in return on equity.
B) The sustainable growth rate will either increase or decrease depending on the result of the change in dividend payouts on the plowback ratio.
C) The sustainable growth rate will decrease.
D) The sustainable growth rate will increase.
5. Considering the fundamental relationships of the balance sheet, how can a company's assets increase without a corresponding rise in liabilities?
A) The company could increase the amount of cash it pays out as dividends.
B) The company could finance the assets by restructuring its long-term debt.
C) The company could finance the assets by increasing owners' equity.
D) The company could increase the amount of depreciation it recognizes.
Solutions:
| Question # 1 Answer: A | Question # 2 Answer: A | Question # 3 Answer: B | Question # 4 Answer: C | Question # 5 Answer: C |
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