WGU D076 Finance Skills for Managers 2026 |
Budgeting, Financial Ratios & Decision-Making
Review
D076
Finance Skills for Managers
Comprehensive Study Guide
WGU | Brau, Holmes, Blau, Fukui
COURSE OVERVIEW
6 Units | 11 Modules Assessment: Task-Based + Excel
45 Lessons Requires: Excel 365 (installed)
6-Week Pacing Plan Tools: MyEducator Add-in
, UNIT 2 | Overview of Finance
Core Competency: Identifies the systems, structure, roles, and impact of finance in the business environment.
Module 1: What Is Finance?
Lesson 1 – Defining Finance & Its Subspecialties
Finance is the study of managing and allocating funds at the personal or business level. Unlike accounting
(backward-looking), finance is forward-looking — focused on investing, forecasting, budgeting, saving, borrowing,
and lending.
Finance Accounting
Forward-looking Backward-looking
Manages/allocates capital Records/reports past transactions
Focuses on decisions Focuses on historical data
Three Subspecialties of Finance
• Business Finance (Managerial Finance) — sources of funding, capital structure, increasing firm value
• Investments — deciding which assets to invest in; asset pricing
• Financial Institutions — banks, insurance companies, investment banks, pension funds
Lesson 2 – Goals of Finance
The main principle underlying all financial decisions: benefits must outweigh costs.
Personal Finance Goal Business Finance Goal
Maximize individual utility Maximize shareholder (or owner) wealth
Budgeting, saving, investing Investment decisions, financing decisions, working
capital
Lesson 3 – The Role of Finance in Business
A financial manager has three main tasks:
• Making Investment Decisions — assessing costs and benefits of potential investments
• Making Financing Decisions — deciding how to fund investments (bonds/equity)
• Managing Working Capital — day-to-day cash management
Finance Careers:
• Corporate Finance — financial analyst, CFO
• Investment Banking — analyst, associate, VP, managing director
• Private Equity — angel investors, venture capitalists, PE buyout firms
, • Commercial Banking — teller, credit analyst, personal banker, management
• Financial Planning — CFP designation; budgeting, retirement, tax
• Insurance — agent, underwriter, actuary, risk manager
• Real Estate — agents, appraisers, developers, investment banking
Module 2: Financial Markets and Institutions
Lesson 5 – Financial Securities and Markets
Security Issued By Key Feature
Treasury Securities U.S. Government Backed by U.S. gov't; risk-free
Corporate Bonds Corporations Fixed coupon payments; debt
instrument
Stocks Corporations Ownership shares; variable return
Money Market Capital Market
Short-term assets (<1 year) Long-term assets (>1 year)
T-bills, commercial paper Stocks, bonds
Market Types
• Primary Market — securities first sold (IPOs, new bond issuances); involves syndicates/underwriters
• Secondary Market — securities traded after initial issuance (NYSE, NASDAQ)
• Auction Market — physical location; prices from highest bid (e.g., NYSE)
• Dealer Market — network of dealers with inventory (e.g., NASDAQ)
Key Concept: Efficient Market — prices fully reflect all available information about a security.
Bid-Ask Spread = Ask Price − Bid Price → compensation to the specialist/dealer for providing liquidity The
SEC protects investors, maintains fair markets, and facilitates capital formation.
Lesson 6–7 – Financial Institutions
Institution Type Role
Central Banks Non-depository Control money supply; U.S. =
Federal Reserve
Banks/Credit Unions Depository Accept deposits; extend loans
Insurance Companies Contractual savings Charge premiums; invest in
stocks/bonds
Mutual Funds Non-depository Pool investor money; buy
securities
Budgeting, Financial Ratios & Decision-Making
Review
D076
Finance Skills for Managers
Comprehensive Study Guide
WGU | Brau, Holmes, Blau, Fukui
COURSE OVERVIEW
6 Units | 11 Modules Assessment: Task-Based + Excel
45 Lessons Requires: Excel 365 (installed)
6-Week Pacing Plan Tools: MyEducator Add-in
, UNIT 2 | Overview of Finance
Core Competency: Identifies the systems, structure, roles, and impact of finance in the business environment.
Module 1: What Is Finance?
Lesson 1 – Defining Finance & Its Subspecialties
Finance is the study of managing and allocating funds at the personal or business level. Unlike accounting
(backward-looking), finance is forward-looking — focused on investing, forecasting, budgeting, saving, borrowing,
and lending.
Finance Accounting
Forward-looking Backward-looking
Manages/allocates capital Records/reports past transactions
Focuses on decisions Focuses on historical data
Three Subspecialties of Finance
• Business Finance (Managerial Finance) — sources of funding, capital structure, increasing firm value
• Investments — deciding which assets to invest in; asset pricing
• Financial Institutions — banks, insurance companies, investment banks, pension funds
Lesson 2 – Goals of Finance
The main principle underlying all financial decisions: benefits must outweigh costs.
Personal Finance Goal Business Finance Goal
Maximize individual utility Maximize shareholder (or owner) wealth
Budgeting, saving, investing Investment decisions, financing decisions, working
capital
Lesson 3 – The Role of Finance in Business
A financial manager has three main tasks:
• Making Investment Decisions — assessing costs and benefits of potential investments
• Making Financing Decisions — deciding how to fund investments (bonds/equity)
• Managing Working Capital — day-to-day cash management
Finance Careers:
• Corporate Finance — financial analyst, CFO
• Investment Banking — analyst, associate, VP, managing director
• Private Equity — angel investors, venture capitalists, PE buyout firms
, • Commercial Banking — teller, credit analyst, personal banker, management
• Financial Planning — CFP designation; budgeting, retirement, tax
• Insurance — agent, underwriter, actuary, risk manager
• Real Estate — agents, appraisers, developers, investment banking
Module 2: Financial Markets and Institutions
Lesson 5 – Financial Securities and Markets
Security Issued By Key Feature
Treasury Securities U.S. Government Backed by U.S. gov't; risk-free
Corporate Bonds Corporations Fixed coupon payments; debt
instrument
Stocks Corporations Ownership shares; variable return
Money Market Capital Market
Short-term assets (<1 year) Long-term assets (>1 year)
T-bills, commercial paper Stocks, bonds
Market Types
• Primary Market — securities first sold (IPOs, new bond issuances); involves syndicates/underwriters
• Secondary Market — securities traded after initial issuance (NYSE, NASDAQ)
• Auction Market — physical location; prices from highest bid (e.g., NYSE)
• Dealer Market — network of dealers with inventory (e.g., NASDAQ)
Key Concept: Efficient Market — prices fully reflect all available information about a security.
Bid-Ask Spread = Ask Price − Bid Price → compensation to the specialist/dealer for providing liquidity The
SEC protects investors, maintains fair markets, and facilitates capital formation.
Lesson 6–7 – Financial Institutions
Institution Type Role
Central Banks Non-depository Control money supply; U.S. =
Federal Reserve
Banks/Credit Unions Depository Accept deposits; extend loans
Insurance Companies Contractual savings Charge premiums; invest in
stocks/bonds
Mutual Funds Non-depository Pool investor money; buy
securities
