WGU C214 Pre-assessment - Set 3
Question and answers already passed
2025/2026
A broker is considering purchasing common stock in a company that has average but consistent
operating performance.
Which factor should lead the broker to purchase shares in this company? - correct answer ✔The
current price of the stock is 25% below its intrinsic value.
A broker is considering buying a dividend-paying stock. The dividend will be paid at the end of the year.
The analyst consensus is the stock will be worth $36 in one year. The company pays a $2.25 annual
dividend (ex dividend date is not a consideration, the broker will receive the full $2.25), and the broker
expects a 12% rate of return
What is the highest price the broker should be willing to pay for the stock? - correct answer ✔N = 1
I/Y = 12
PMT= 2.25
FV = 36
CPT PV = $34.15
A person buys shares of a company at $45. They recently paid a $2 annual dividend which is expected to
grow by 10% per year.
What is the expected return per year? - correct answer ✔STEP 1 = CALCULATE EXPECTED DIVIDEND
2 * ( 1 + 0.1000 ) = 2.2000
STEP 2 = CALCULATE EXPECTED RETURN
, ( 2. ) + 0.1000 = 0.1489
0.1489 OR 14.9%
The figure below represents the levels of market efficiency:
(Image)
Which investment option is less desirable for a prudent investor? - correct answer ✔E
The market rate of return is 9%. The face value of the bond is $1000, the coupon rate is 9% with annual
compounding, and the bond matures in 10 years.
What is the value of the bond? - correct answer ✔FV = 1000
PMT = 1000*9% (coupon rate) = 90
N = 10
I/Y = 9 (Yield/Market RR/Expected RR)
CPT PV = 1,000
Which statement is true about fluctuations in bond prices? - correct answer ✔When market interest
rates fluctuate, the bond coupon rate is unchanged.
A company issues bonds at a market price of $925. The face value is $1,000. The bonds mature in 10
years, and the coupon rate is 6% compounded semiannually.
What is the yield to maturity (YTM) on the company's bonds? - correct answer ✔FV = 1000
Question and answers already passed
2025/2026
A broker is considering purchasing common stock in a company that has average but consistent
operating performance.
Which factor should lead the broker to purchase shares in this company? - correct answer ✔The
current price of the stock is 25% below its intrinsic value.
A broker is considering buying a dividend-paying stock. The dividend will be paid at the end of the year.
The analyst consensus is the stock will be worth $36 in one year. The company pays a $2.25 annual
dividend (ex dividend date is not a consideration, the broker will receive the full $2.25), and the broker
expects a 12% rate of return
What is the highest price the broker should be willing to pay for the stock? - correct answer ✔N = 1
I/Y = 12
PMT= 2.25
FV = 36
CPT PV = $34.15
A person buys shares of a company at $45. They recently paid a $2 annual dividend which is expected to
grow by 10% per year.
What is the expected return per year? - correct answer ✔STEP 1 = CALCULATE EXPECTED DIVIDEND
2 * ( 1 + 0.1000 ) = 2.2000
STEP 2 = CALCULATE EXPECTED RETURN
, ( 2. ) + 0.1000 = 0.1489
0.1489 OR 14.9%
The figure below represents the levels of market efficiency:
(Image)
Which investment option is less desirable for a prudent investor? - correct answer ✔E
The market rate of return is 9%. The face value of the bond is $1000, the coupon rate is 9% with annual
compounding, and the bond matures in 10 years.
What is the value of the bond? - correct answer ✔FV = 1000
PMT = 1000*9% (coupon rate) = 90
N = 10
I/Y = 9 (Yield/Market RR/Expected RR)
CPT PV = 1,000
Which statement is true about fluctuations in bond prices? - correct answer ✔When market interest
rates fluctuate, the bond coupon rate is unchanged.
A company issues bonds at a market price of $925. The face value is $1,000. The bonds mature in 10
years, and the coupon rate is 6% compounded semiannually.
What is the yield to maturity (YTM) on the company's bonds? - correct answer ✔FV = 1000
