WGU D076 OA CERTIFICATION SCRIPT
2026 FULL ANSWERS TEST PAPER GRADED
A+
⩥ Dividend Discount Model.
Answer: A model used to evaluate common stock that calculates the
value of a share of common stock today by taking the present value of
future dividend cash flows.Go To
⩥ Dividends in Arrears.
Answer: A feature of preferred stock specifying that if a company
ignores preferred stock dividends, it cannot pay anything to its common
stockholders.Go To
⩥ DuPont Framework.
Answer: An expanded formula of the return of equity, net margin times
total asset turnover times leverage multiplier, which represent the
components of profitability, activity (efficiency), and financing.Go To
⩥ Efficient market.
Answer: A market in which prices fully reflect all the available
information about a specific security.Go To
,⩥ Estates.
Answer: Everything that a person owns or controls, especially at
death.Go To
⩥ Ethical Dilemma.
Answer: An issue in the process of deciding between multiple options
where no option is completely acceptable from an ethical standpoint.Go
To
⩥ Ethics.
Answer: Following accepted standards of moral conduct.Go To
⩥ Expected Return.
Answer: A hypothesized estimate of future prices or returns under
different scenarios based on expectational data.Go To
⩥ External Financing Needed (EFN).
Answer: Another name for the discretionary financing needed or
additional funds needed. It represents the additional financing needed
given a firm's expectations for future growth.Go To
⩥ Face Value.
Answer: The sum of money that a corporation promises to pay at the
expiration of a bond; also called par value.Go To
,⩥ Finance.
Answer: The study of managing and allocating funds at the personal or
business level.Go To
⩥ Financial Institutions.
Answer: An area of finance that includes firms or organizations that
exist to accept a wide variety of deposits, to offer investment products to
individuals and businesses, to provide loans, or to broker financial
transactions.Go To
⩥ Financial Managers.
Answer: A person who makes strategic financial decisions in a
corporation.Go To
⩥ Financial Policy Implementation.
Answer: Incorporating new finance ideas within a firm.Go To
⩥ Financial Risk.
Answer: Increased volatility in earnings as a result of using debt.Go To
⩥ Firm-specific Risk.
, Answer: Risk that results from factors at a particular firm and can be
reduced through diversification; also called nonsystematic risk or
idiosyncratic risk.Go To
⩥ Fisher Effect.
Answer: An economic theory developed by Irving Fisher holding that
the real interest rate is equivalent to the nominal interest rate minus the
expected inflation rate.Go To
⩥ Fixed Asset Turnover (FAT).
Answer: An activity ratio found by sales divided by fixed assets.Go To
⩥ Fixed Expenditures.
Answer: An expense that you do not have direct control over and that
remains constant from period to period.Go To
⩥ Fixed-income Securities.
Answer: Another name for bonds; a financial security in which the
borrower pays a fixed interest payment to investors each year.Go To
⩥ Future Value.
Answer: The worth of cash flows in terms of the dollar amount in the
relative future.Go To
2026 FULL ANSWERS TEST PAPER GRADED
A+
⩥ Dividend Discount Model.
Answer: A model used to evaluate common stock that calculates the
value of a share of common stock today by taking the present value of
future dividend cash flows.Go To
⩥ Dividends in Arrears.
Answer: A feature of preferred stock specifying that if a company
ignores preferred stock dividends, it cannot pay anything to its common
stockholders.Go To
⩥ DuPont Framework.
Answer: An expanded formula of the return of equity, net margin times
total asset turnover times leverage multiplier, which represent the
components of profitability, activity (efficiency), and financing.Go To
⩥ Efficient market.
Answer: A market in which prices fully reflect all the available
information about a specific security.Go To
,⩥ Estates.
Answer: Everything that a person owns or controls, especially at
death.Go To
⩥ Ethical Dilemma.
Answer: An issue in the process of deciding between multiple options
where no option is completely acceptable from an ethical standpoint.Go
To
⩥ Ethics.
Answer: Following accepted standards of moral conduct.Go To
⩥ Expected Return.
Answer: A hypothesized estimate of future prices or returns under
different scenarios based on expectational data.Go To
⩥ External Financing Needed (EFN).
Answer: Another name for the discretionary financing needed or
additional funds needed. It represents the additional financing needed
given a firm's expectations for future growth.Go To
⩥ Face Value.
Answer: The sum of money that a corporation promises to pay at the
expiration of a bond; also called par value.Go To
,⩥ Finance.
Answer: The study of managing and allocating funds at the personal or
business level.Go To
⩥ Financial Institutions.
Answer: An area of finance that includes firms or organizations that
exist to accept a wide variety of deposits, to offer investment products to
individuals and businesses, to provide loans, or to broker financial
transactions.Go To
⩥ Financial Managers.
Answer: A person who makes strategic financial decisions in a
corporation.Go To
⩥ Financial Policy Implementation.
Answer: Incorporating new finance ideas within a firm.Go To
⩥ Financial Risk.
Answer: Increased volatility in earnings as a result of using debt.Go To
⩥ Firm-specific Risk.
, Answer: Risk that results from factors at a particular firm and can be
reduced through diversification; also called nonsystematic risk or
idiosyncratic risk.Go To
⩥ Fisher Effect.
Answer: An economic theory developed by Irving Fisher holding that
the real interest rate is equivalent to the nominal interest rate minus the
expected inflation rate.Go To
⩥ Fixed Asset Turnover (FAT).
Answer: An activity ratio found by sales divided by fixed assets.Go To
⩥ Fixed Expenditures.
Answer: An expense that you do not have direct control over and that
remains constant from period to period.Go To
⩥ Fixed-income Securities.
Answer: Another name for bonds; a financial security in which the
borrower pays a fixed interest payment to investors each year.Go To
⩥ Future Value.
Answer: The worth of cash flows in terms of the dollar amount in the
relative future.Go To
