WGU C214 FINANCIAL
MANAGEMENT OBJECTIVE
ASSESSMENT WITH COMPLETE
EXAM QUESTIONS AND CORRECT
SOLUTIONS||A+ GRADED||100%
GUARANTEED PASS||UPDATED
2026/2027 SYLLABUS||
Which ratio reflects a firms reliance on debt financing - ANSWER ✓ The
financial leverage ratio
FLR = total assets/ equity
If two firms use different inventory valuation methods, it is called: - ANSWER ✓
Accounting difference
What do liquidity ratios measure? - ANSWER ✓ Bill paying capacity
What do profitability ratio measure? - ANSWER ✓ Net income
What are some things that affect the required return on a security? - ANSWER ✓
Perceived riskiness of the security, degree of investor, risk, aversion, trading in
financial markets
What do efficiency ratios measure? - ANSWER ✓ Revenue per asset
What do financing ratios measure? - ANSWER ✓ Reliance on debt
What does trend analysis do? - ANSWER ✓ Compares ratios of a firm over time
, What does cross-sectional analysis do? - ANSWER ✓ Compares firm to
competitor or industry average
What is the most frequent type of transaction in financial markets? - ANSWER ✓
Secondary market trade. The NYSE is the largest financial trader and is a
secondary market
Which of the five White financial function keys represent a series of cash
disbursements? - ANSWER ✓ PMT key
What does PV stand for? - ANSWER ✓ Present value, a single lump of cash
today
What does FV stand for? - ANSWER ✓ Future value, a single lump of cash in the
future
What does PMT stand for? - ANSWER ✓ It stands for payment, a series of lumps
of cash (I.e. per period). It must be adjusted if it is not annual.
What does N stand for? - ANSWER ✓ It stands for periods, a number of payment
periods. This does not necessarily mean years. It must be adjusted if it is not
annual.
If payments are made semi annually, which key inputs must be adjusted?
1. PMT.
2. I/Y
3. N
4. All of the above. - ANSWER ✓ all of the above.
Which signifies a need to change the calculator to Begin mode?
1. Cash deposited at the beginning of the year.
2. Recurring payments made at the beginning of the year.
3. Payments are made more frequently than annually.
4. None of the above. - ANSWER ✓ 2. Recurring payments made at the beginning
of the year.
*You must put your calculator in begin mode when you see this.
,What does I/Y stand for? - ANSWER ✓ Interest rate. It is the interest rate per
payment.. It also must be adjusted if it is not annual.
What is another word for interest or yield? - ANSWER ✓ Required return,
expected, return, profit per period.
Which can be defined as "change in value of cash over time"?
1. Interest rate.
2. Yield.
3. Expected return
4. All of the above. - ANSWER ✓ All of the above.
How do you put your calculator into begin mode? - ANSWER ✓ 2nd > BGN >
2nd > Enter > Off > On
Why is an annuity due more valuable than an ordinary annuity? - ANSWER ✓
Payments are received earlier
Which annuity provides increasing payments overtime - ANSWER ✓ Perpetual
growth annuity
Market efficiency requirements are: - ANSWER ✓ Competitive, liquid,
transparent, standardized
An increase in networking capital causes - ANSWER ✓ Cash outflow
What features distinguish bonds from stocks? - ANSWER ✓ -A bond is a loan
from an investor, but a stock becomes a part owner
-A bond is usually $1000 but the value of a stock changes
-At maturity, the principal for a bond is repaid to the investor, but a stock does not
have a maturity date
They both have varying prices on the secondary market
Which bond feature is not a legal obligation?
1. Face value
2. Price
3. Maturity date.
, 4. Coupon rate. - ANSWER ✓ 2. Price.
A bond's price and yield are set by supply and demand in the secondary market
prices and yields change continuously, but the coupon rate is fixed.
Yield on a bond can best be described as: - ANSWER ✓ Rate of increase in value
of investment
When is the bond yield equal to the coupon rate? - ANSWER ✓ At par price
What do you call it when a bond price increases or decreases? - ANSWER ✓
Premium price is when the bond price increases
Discount price is when the bond price drops
What is the relationship between bond price and yield? - ANSWER ✓ They have
an inverse relationship. When a bond price increases it, lowers the bond yield.
When a bond price drops, it increases the bond yield.
Which does not affect a Barnes required yield?
1. Treasury yields.
2. Earnings per share.
3. Term to maturity.
4. Firm riskiness. - ANSWER ✓ 2. Earnings per share, because that is associated
with stocks not bonds.
What does the duration of a bond measure? - ANSWER ✓ Duration measures the
market risk of a bond, for example, how volatile are prices as market interest rates
change over time
What is the difference between common and preferred stock? - ANSWER ✓
Common stocks:
Ownership of earnings per share , receive dividends at discretion of corporation,
voting rights to elect Board of Directors, no maturity date
Preferred stock: (a hybrid of bonds and common stock)
Priority of claims in bankruptcy, fixed dividends, no voting rights, no maturity date
If rating agencies downgrade a bond from AAA to BBB, what happens? -
ANSWER ✓ The bonds price decreases
MANAGEMENT OBJECTIVE
ASSESSMENT WITH COMPLETE
EXAM QUESTIONS AND CORRECT
SOLUTIONS||A+ GRADED||100%
GUARANTEED PASS||UPDATED
2026/2027 SYLLABUS||
Which ratio reflects a firms reliance on debt financing - ANSWER ✓ The
financial leverage ratio
FLR = total assets/ equity
If two firms use different inventory valuation methods, it is called: - ANSWER ✓
Accounting difference
What do liquidity ratios measure? - ANSWER ✓ Bill paying capacity
What do profitability ratio measure? - ANSWER ✓ Net income
What are some things that affect the required return on a security? - ANSWER ✓
Perceived riskiness of the security, degree of investor, risk, aversion, trading in
financial markets
What do efficiency ratios measure? - ANSWER ✓ Revenue per asset
What do financing ratios measure? - ANSWER ✓ Reliance on debt
What does trend analysis do? - ANSWER ✓ Compares ratios of a firm over time
, What does cross-sectional analysis do? - ANSWER ✓ Compares firm to
competitor or industry average
What is the most frequent type of transaction in financial markets? - ANSWER ✓
Secondary market trade. The NYSE is the largest financial trader and is a
secondary market
Which of the five White financial function keys represent a series of cash
disbursements? - ANSWER ✓ PMT key
What does PV stand for? - ANSWER ✓ Present value, a single lump of cash
today
What does FV stand for? - ANSWER ✓ Future value, a single lump of cash in the
future
What does PMT stand for? - ANSWER ✓ It stands for payment, a series of lumps
of cash (I.e. per period). It must be adjusted if it is not annual.
What does N stand for? - ANSWER ✓ It stands for periods, a number of payment
periods. This does not necessarily mean years. It must be adjusted if it is not
annual.
If payments are made semi annually, which key inputs must be adjusted?
1. PMT.
2. I/Y
3. N
4. All of the above. - ANSWER ✓ all of the above.
Which signifies a need to change the calculator to Begin mode?
1. Cash deposited at the beginning of the year.
2. Recurring payments made at the beginning of the year.
3. Payments are made more frequently than annually.
4. None of the above. - ANSWER ✓ 2. Recurring payments made at the beginning
of the year.
*You must put your calculator in begin mode when you see this.
,What does I/Y stand for? - ANSWER ✓ Interest rate. It is the interest rate per
payment.. It also must be adjusted if it is not annual.
What is another word for interest or yield? - ANSWER ✓ Required return,
expected, return, profit per period.
Which can be defined as "change in value of cash over time"?
1. Interest rate.
2. Yield.
3. Expected return
4. All of the above. - ANSWER ✓ All of the above.
How do you put your calculator into begin mode? - ANSWER ✓ 2nd > BGN >
2nd > Enter > Off > On
Why is an annuity due more valuable than an ordinary annuity? - ANSWER ✓
Payments are received earlier
Which annuity provides increasing payments overtime - ANSWER ✓ Perpetual
growth annuity
Market efficiency requirements are: - ANSWER ✓ Competitive, liquid,
transparent, standardized
An increase in networking capital causes - ANSWER ✓ Cash outflow
What features distinguish bonds from stocks? - ANSWER ✓ -A bond is a loan
from an investor, but a stock becomes a part owner
-A bond is usually $1000 but the value of a stock changes
-At maturity, the principal for a bond is repaid to the investor, but a stock does not
have a maturity date
They both have varying prices on the secondary market
Which bond feature is not a legal obligation?
1. Face value
2. Price
3. Maturity date.
, 4. Coupon rate. - ANSWER ✓ 2. Price.
A bond's price and yield are set by supply and demand in the secondary market
prices and yields change continuously, but the coupon rate is fixed.
Yield on a bond can best be described as: - ANSWER ✓ Rate of increase in value
of investment
When is the bond yield equal to the coupon rate? - ANSWER ✓ At par price
What do you call it when a bond price increases or decreases? - ANSWER ✓
Premium price is when the bond price increases
Discount price is when the bond price drops
What is the relationship between bond price and yield? - ANSWER ✓ They have
an inverse relationship. When a bond price increases it, lowers the bond yield.
When a bond price drops, it increases the bond yield.
Which does not affect a Barnes required yield?
1. Treasury yields.
2. Earnings per share.
3. Term to maturity.
4. Firm riskiness. - ANSWER ✓ 2. Earnings per share, because that is associated
with stocks not bonds.
What does the duration of a bond measure? - ANSWER ✓ Duration measures the
market risk of a bond, for example, how volatile are prices as market interest rates
change over time
What is the difference between common and preferred stock? - ANSWER ✓
Common stocks:
Ownership of earnings per share , receive dividends at discretion of corporation,
voting rights to elect Board of Directors, no maturity date
Preferred stock: (a hybrid of bonds and common stock)
Priority of claims in bankruptcy, fixed dividends, no voting rights, no maturity date
If rating agencies downgrade a bond from AAA to BBB, what happens? -
ANSWER ✓ The bonds price decreases
