Wgu D755 Introduction to Business Finance | Comprehensive Assessments | 2026–2027
Exam Prep, “WGU D755 Business Finance Study
Guide (2026–2027) – 100-Page Comprehensive
Notes, Asessments & Guaranteed A+ Help”For
May 1st 2026.
Table of Contents
Unit 1: Foundations of Business Finance ..................................................................... 3
1.1 Role of Finance & Financial Managers ..................................................................... 3
1.2 Financial Statements Overview ..................................................................... 4
1.3 Financial Ratios Analysis ..................................................................... 6
1.4 Cash Flow Statements ..................................................................... 9
Unit 1 Assessment Questions ..................................................................... 11
Unit 2: Time Value of Money ..................................................................... 14
2.1 Present Value & Future Value ..................................................................... 14
2.2 Annuities & Perpetuities ..................................................................... 16
2.3 Loan Amortization ..................................................................... 18
Unit 2 Assessment Questions ..................................................................... 20
Unit 3: Risk, Return & CAPM ..................................................................... 24
3.1 Risk & Return Fundamentals ..................................................................... 24
3.2 Portfolio Theory & Diversification ..................................................................... 26
3.3 Capital Asset Pricing Model ..................................................................... 28
Unit 3 Assessment Questions ..................................................................... 30
Unit 4: Bond & Stock Valuation ..................................................................... 34
4.1 Bond Valuation ..................................................................... 34
4.2 Stock Valuation Models ..................................................................... 37
Unit 4 Assessment Questions ..................................................................... 40
Unit 5: Capital Budgeting ..................................................................... 44
5.1 Net Present Value (NPV) ..................................................................... 44
5.2 Internal Rate of Return (IRR) & MIRR ..................................................................... 46
5.3 Payback Period & Profitability Index ..................................................................... 48
Unit 5 Assessment Questions ..................................................................... 50
Unit 6: Cost of Capital & WACC ..................................................................... 54
6.1 Cost of Debt & Equity ..................................................................... 54
6.2 Weighted Average Cost of Capital ..................................................................... 56
Unit 6 Assessment Questions ..................................................................... 58
Unit 7: Capital Structure & Leverage ..................................................................... 62
7.1 Operating & Financial Leverage ..................................................................... 62
7.2 Capital Structure Theory ..................................................................... 64
Unit 7 Assessment Questions ..................................................................... 66
WGU D755 | Business Finance Assessments | Page
,Wgu D755 Introduction to Business Finance | Comprehensive Assessments | 2026–2027
Unit 8: Working Capital Management ..................................................................... 70
8.1 Cash & Liquidity Management ..................................................................... 70
8.2 Receivables & Payables ..................................................................... 72
Unit 8 Assessment Questions ..................................................................... 74
Unit 9: Financial Planning & Forecasting ..................................................................... 78
9.1 Pro Forma Statements & Forecasting ..................................................................... 78
9.2 Ratio Analysis & DuPont ..................................................................... 80
Unit 9 Assessment Questions ..................................................................... 82
Unit 10: Comprehensive Final Assessments ..................................................................... 86
Mixed Practice Exam A (50 Questions) ..................................................................... 86
Mixed Practice Exam B (50 Questions) ..................................................................... 93
Appendix: Key Formulas Reference Sheet ..................................................................... 100
WGU D755 | Business Finance Assessments | Page
,Wgu D755 Introduction to Business Finance | Comprehensive Assessments | 2026–2027
Unit 1: Foundations of Business Finance & Financial Statements
1.1 Role of Finance & Financial Managers
Business finance is the study of how organizations acquire, allocate, and manage money to
achieve their strategic objectives. Finance sits at the intersection of accounting, economics,
and management, providing the analytical framework for every major business decision.
Three Core Areas of Finance
Area Focus Examples
Corporate Finance How firms raise capital and Capital budgeting, capital
invest it to maximize structure, dividends
shareholder value
Investments Valuation of securities and Stocks, bonds, derivatives,
portfolio management mutual funds
Financial Markets Institutions and markets that Stock exchanges, money
facilitate capital flows markets, banking
Goals of the Firm
Item Details
Shareholder Wealth Primary goal in finance — maximize the market value
Maximization (stock price × shares) of the owners' equity. Differs
from profit maximization because it accounts for timing,
risk, and cash flows.
Profit Maximization Secondary / accounting goal — maximize net income;
may conflict with shareholder value (ignores risk,
timing, and non-cash items).
Stakeholder Value Broader goal — balance the interests of shareholders,
employees, customers, community, and creditors.
Agency Problem Conflict between managers (agents) and shareholders
(principals). Managers may act in their own interest.
Mitigated by incentive compensation, monitoring, and
governance.
Agency Costs Costs to monitor and align managers with shareholder
interests: audit fees, incentive pay, board oversight,
legal costs.
Forms of Business Organization
WGU D755 | Business Finance Assessments | Page
, Wgu D755 Introduction to Business Finance | Comprehensive Assessments | 2026–2027
Form Ownership Liability Tax Treatment
Sole Single owner Unlimited Pass-through (personal
Proprietorship personal liability income tax)
Partnership 2+ partners Generally Pass-through
unlimited; LP
has limited
Corporation Shareholders Limited to Double taxation (corporate +
(C-Corp) investment dividend)
S-Corporation ≤ 100 US Limited Pass-through (avoids double
shareholders tax)
LLC Members Limited Flexible (pass-through or
corporate)
1.2 Financial Statements Overview
The three core financial statements are the Balance Sheet, Income Statement, and Cash Flow
Statement. Together they provide a complete picture of a firm's financial health, performance,
and liquidity.
The Balance Sheet (Statement of Financial Position)
The balance sheet presents assets, liabilities, and equity at a specific point in time. It always
satisfies: Assets = Liabilities + Shareholders' Equity.
▶ Formula
Basic Equation: Assets = Liabilities + Shareholders' Equity
Working Capital: WC = Current Assets − Current Liabilities
Category Components Key Items
Current Assets Assets convertible to cash Cash, marketable securities,
within 1 year accounts receivable,
inventory, prepaid expenses
Non-Current Long-term assets PP&E (net of depreciation),
Assets intangibles (goodwill, patents),
LT investments
Current Liabilities Obligations due within 1 year Accounts payable, short-term
debt, accrued liabilities,
deferred revenue
WGU D755 | Business Finance Assessments | Page
Exam Prep, “WGU D755 Business Finance Study
Guide (2026–2027) – 100-Page Comprehensive
Notes, Asessments & Guaranteed A+ Help”For
May 1st 2026.
Table of Contents
Unit 1: Foundations of Business Finance ..................................................................... 3
1.1 Role of Finance & Financial Managers ..................................................................... 3
1.2 Financial Statements Overview ..................................................................... 4
1.3 Financial Ratios Analysis ..................................................................... 6
1.4 Cash Flow Statements ..................................................................... 9
Unit 1 Assessment Questions ..................................................................... 11
Unit 2: Time Value of Money ..................................................................... 14
2.1 Present Value & Future Value ..................................................................... 14
2.2 Annuities & Perpetuities ..................................................................... 16
2.3 Loan Amortization ..................................................................... 18
Unit 2 Assessment Questions ..................................................................... 20
Unit 3: Risk, Return & CAPM ..................................................................... 24
3.1 Risk & Return Fundamentals ..................................................................... 24
3.2 Portfolio Theory & Diversification ..................................................................... 26
3.3 Capital Asset Pricing Model ..................................................................... 28
Unit 3 Assessment Questions ..................................................................... 30
Unit 4: Bond & Stock Valuation ..................................................................... 34
4.1 Bond Valuation ..................................................................... 34
4.2 Stock Valuation Models ..................................................................... 37
Unit 4 Assessment Questions ..................................................................... 40
Unit 5: Capital Budgeting ..................................................................... 44
5.1 Net Present Value (NPV) ..................................................................... 44
5.2 Internal Rate of Return (IRR) & MIRR ..................................................................... 46
5.3 Payback Period & Profitability Index ..................................................................... 48
Unit 5 Assessment Questions ..................................................................... 50
Unit 6: Cost of Capital & WACC ..................................................................... 54
6.1 Cost of Debt & Equity ..................................................................... 54
6.2 Weighted Average Cost of Capital ..................................................................... 56
Unit 6 Assessment Questions ..................................................................... 58
Unit 7: Capital Structure & Leverage ..................................................................... 62
7.1 Operating & Financial Leverage ..................................................................... 62
7.2 Capital Structure Theory ..................................................................... 64
Unit 7 Assessment Questions ..................................................................... 66
WGU D755 | Business Finance Assessments | Page
,Wgu D755 Introduction to Business Finance | Comprehensive Assessments | 2026–2027
Unit 8: Working Capital Management ..................................................................... 70
8.1 Cash & Liquidity Management ..................................................................... 70
8.2 Receivables & Payables ..................................................................... 72
Unit 8 Assessment Questions ..................................................................... 74
Unit 9: Financial Planning & Forecasting ..................................................................... 78
9.1 Pro Forma Statements & Forecasting ..................................................................... 78
9.2 Ratio Analysis & DuPont ..................................................................... 80
Unit 9 Assessment Questions ..................................................................... 82
Unit 10: Comprehensive Final Assessments ..................................................................... 86
Mixed Practice Exam A (50 Questions) ..................................................................... 86
Mixed Practice Exam B (50 Questions) ..................................................................... 93
Appendix: Key Formulas Reference Sheet ..................................................................... 100
WGU D755 | Business Finance Assessments | Page
,Wgu D755 Introduction to Business Finance | Comprehensive Assessments | 2026–2027
Unit 1: Foundations of Business Finance & Financial Statements
1.1 Role of Finance & Financial Managers
Business finance is the study of how organizations acquire, allocate, and manage money to
achieve their strategic objectives. Finance sits at the intersection of accounting, economics,
and management, providing the analytical framework for every major business decision.
Three Core Areas of Finance
Area Focus Examples
Corporate Finance How firms raise capital and Capital budgeting, capital
invest it to maximize structure, dividends
shareholder value
Investments Valuation of securities and Stocks, bonds, derivatives,
portfolio management mutual funds
Financial Markets Institutions and markets that Stock exchanges, money
facilitate capital flows markets, banking
Goals of the Firm
Item Details
Shareholder Wealth Primary goal in finance — maximize the market value
Maximization (stock price × shares) of the owners' equity. Differs
from profit maximization because it accounts for timing,
risk, and cash flows.
Profit Maximization Secondary / accounting goal — maximize net income;
may conflict with shareholder value (ignores risk,
timing, and non-cash items).
Stakeholder Value Broader goal — balance the interests of shareholders,
employees, customers, community, and creditors.
Agency Problem Conflict between managers (agents) and shareholders
(principals). Managers may act in their own interest.
Mitigated by incentive compensation, monitoring, and
governance.
Agency Costs Costs to monitor and align managers with shareholder
interests: audit fees, incentive pay, board oversight,
legal costs.
Forms of Business Organization
WGU D755 | Business Finance Assessments | Page
, Wgu D755 Introduction to Business Finance | Comprehensive Assessments | 2026–2027
Form Ownership Liability Tax Treatment
Sole Single owner Unlimited Pass-through (personal
Proprietorship personal liability income tax)
Partnership 2+ partners Generally Pass-through
unlimited; LP
has limited
Corporation Shareholders Limited to Double taxation (corporate +
(C-Corp) investment dividend)
S-Corporation ≤ 100 US Limited Pass-through (avoids double
shareholders tax)
LLC Members Limited Flexible (pass-through or
corporate)
1.2 Financial Statements Overview
The three core financial statements are the Balance Sheet, Income Statement, and Cash Flow
Statement. Together they provide a complete picture of a firm's financial health, performance,
and liquidity.
The Balance Sheet (Statement of Financial Position)
The balance sheet presents assets, liabilities, and equity at a specific point in time. It always
satisfies: Assets = Liabilities + Shareholders' Equity.
▶ Formula
Basic Equation: Assets = Liabilities + Shareholders' Equity
Working Capital: WC = Current Assets − Current Liabilities
Category Components Key Items
Current Assets Assets convertible to cash Cash, marketable securities,
within 1 year accounts receivable,
inventory, prepaid expenses
Non-Current Long-term assets PP&E (net of depreciation),
Assets intangibles (goodwill, patents),
LT investments
Current Liabilities Obligations due within 1 year Accounts payable, short-term
debt, accrued liabilities,
deferred revenue
WGU D755 | Business Finance Assessments | Page
