3/20/25, 9:59 PM WGU C214 Financial Mgmt Pass the OA 2025 update|comprehensive questions and verified answers (complete solutions) GR…
WGU C214 Financial Mgmt Pass the OA 2025
update|comprehensive questions and verified
answers (complete solutions) GRADE A+!!
Save
Terms in this set (160)
-dividends in arrears
-dividends are cumulative
-higher payoff claim in a BK (has first dibs in a BK)
-considered "hybrid" (part stock/part bond)
Characteristics of
-no fixed maturity date
preferred stock includes
-no voting rights
-can skip dividend payments
-dividends don't change year-after-year
-used in start ups (IPO)
can go without payment and pay in arrears the
Preferred stock dividends
following year
-voting rights
-no maturity date
-corporate governance
Characteristics of -lower payoff claim in BK
common stock are -variable returns
-unlimited earnings potential
-earnings are in dividends & the increase in price of
stock
New start up ventures preferred stock (in an IPO)
often issue
What stock is considered preferred stock
a hybrid
https://quizlet.com/1020930475/wgu-c214-financial-mgmt-pass-the-oa-2025-updatecomprehensive-questions-and-verified-answers-complete-sol… 1/16
,3/20/25, 9:59 PM WGU C214 Financial Mgmt Pass the OA 2025 update|comprehensive questions and verified answers (complete solutions) GR…
One thing common stock both have no maturity date
and preferred stock have
in common is
Which type of security common stock
has voting rights
Debt covenants and management is meeting bond and shareholder
restrictions help to expectations
ensure that NOTE: covenants are promises meant to be kept
-when bond matures, bondholder gets lump sum
back
What is true regarding -coupon rate doesn't change
bonds -maturity is in years
-PAR value is typically $1000
-Future value (same as PAR) is typically $1000
Bond sells at face value required rate of return is equal to the coupon rate
when
because bonds remove the intermediary costs
Why are bonds the
NOTE: IPO's require an intermediary known as a
primary method for
syndicate - a group of banks underwriting the
raising capital
security issue
What type of bond can convertible bonds
be traded for stock
What is the interest rate the coupon rate
for annual payments of a NOTE: coupon rate is the established interest rate
bond known as for the life of the bond and will remain unchanged
Coupon rate is the never change
established rate of the
bond and should
secured bonds
NOTE: debentures are a debt instrument (bond)
Debentures are issued to raise cash, secured against a company's
assets and backed by credit, transferable by the
holder, and may also be unsecured
Secured loan has collateral like a mortgage
https://quizlet.com/1020930475/wgu-c214-financial-mgmt-pass-the-oa-2025-updatecomprehensive-questions-and-verified-answers-complete-sol… 2/16
, 3/20/25, 9:59 PM WGU C214 Financial Mgmt Pass the OA 2025 update|comprehensive questions and verified answers (complete solutions) GR…
The amount repaid at the PAR value
expiration date of a bond NOTE: expiration date is also known as maturity date
is PAR (or Face Value) is typically $1000
the market risk of a bond and is the percentage
drop in price caused by a 1% increase in yield (rate)
Duration measures
NOTE: measurement of the drop in price after a rate
increase
Maturity of bonds is years
calculated in
bonds are issued for an amount greater than their
A bond premium occurs face or maturity amount; caused by the bonds
when having a stated interest rate that is higher than the
market interest rate for similar bonds
Junk Bonds are high yield bonds without any stability
having more debt (bonds) than equity (stock) and
lower stock prices
"Leveraged" results in
NOTE: recall that debt is safer and levels out risk in a
portfolio
LEAST liquid of current assets
In current assets,
NOTE: current assets take less than 12 months to
inventory is the
make liquid
long term assets such as buildings, land, equipment,
Net fixed assets are machinery
NOTE: assets that are not current
suppliers for what is bought on credit and amount
A/P represents money
owed by a business to suppliers by agreement
paid to
NOTE: A/P is supplies, inventory, or PP&E
an explicit interest bearing arrangement with the
Notes payable involves lender at interest cost
NOTE: notes payable is a long-term liability
maturity
Current liabilities are
NOTE: current liabilities are to be paid within 12
listed in order of
months
https://quizlet.com/1020930475/wgu-c214-financial-mgmt-pass-the-oa-2025-updatecomprehensive-questions-and-verified-answers-complete-sol… 3/16
WGU C214 Financial Mgmt Pass the OA 2025
update|comprehensive questions and verified
answers (complete solutions) GRADE A+!!
Save
Terms in this set (160)
-dividends in arrears
-dividends are cumulative
-higher payoff claim in a BK (has first dibs in a BK)
-considered "hybrid" (part stock/part bond)
Characteristics of
-no fixed maturity date
preferred stock includes
-no voting rights
-can skip dividend payments
-dividends don't change year-after-year
-used in start ups (IPO)
can go without payment and pay in arrears the
Preferred stock dividends
following year
-voting rights
-no maturity date
-corporate governance
Characteristics of -lower payoff claim in BK
common stock are -variable returns
-unlimited earnings potential
-earnings are in dividends & the increase in price of
stock
New start up ventures preferred stock (in an IPO)
often issue
What stock is considered preferred stock
a hybrid
https://quizlet.com/1020930475/wgu-c214-financial-mgmt-pass-the-oa-2025-updatecomprehensive-questions-and-verified-answers-complete-sol… 1/16
,3/20/25, 9:59 PM WGU C214 Financial Mgmt Pass the OA 2025 update|comprehensive questions and verified answers (complete solutions) GR…
One thing common stock both have no maturity date
and preferred stock have
in common is
Which type of security common stock
has voting rights
Debt covenants and management is meeting bond and shareholder
restrictions help to expectations
ensure that NOTE: covenants are promises meant to be kept
-when bond matures, bondholder gets lump sum
back
What is true regarding -coupon rate doesn't change
bonds -maturity is in years
-PAR value is typically $1000
-Future value (same as PAR) is typically $1000
Bond sells at face value required rate of return is equal to the coupon rate
when
because bonds remove the intermediary costs
Why are bonds the
NOTE: IPO's require an intermediary known as a
primary method for
syndicate - a group of banks underwriting the
raising capital
security issue
What type of bond can convertible bonds
be traded for stock
What is the interest rate the coupon rate
for annual payments of a NOTE: coupon rate is the established interest rate
bond known as for the life of the bond and will remain unchanged
Coupon rate is the never change
established rate of the
bond and should
secured bonds
NOTE: debentures are a debt instrument (bond)
Debentures are issued to raise cash, secured against a company's
assets and backed by credit, transferable by the
holder, and may also be unsecured
Secured loan has collateral like a mortgage
https://quizlet.com/1020930475/wgu-c214-financial-mgmt-pass-the-oa-2025-updatecomprehensive-questions-and-verified-answers-complete-sol… 2/16
, 3/20/25, 9:59 PM WGU C214 Financial Mgmt Pass the OA 2025 update|comprehensive questions and verified answers (complete solutions) GR…
The amount repaid at the PAR value
expiration date of a bond NOTE: expiration date is also known as maturity date
is PAR (or Face Value) is typically $1000
the market risk of a bond and is the percentage
drop in price caused by a 1% increase in yield (rate)
Duration measures
NOTE: measurement of the drop in price after a rate
increase
Maturity of bonds is years
calculated in
bonds are issued for an amount greater than their
A bond premium occurs face or maturity amount; caused by the bonds
when having a stated interest rate that is higher than the
market interest rate for similar bonds
Junk Bonds are high yield bonds without any stability
having more debt (bonds) than equity (stock) and
lower stock prices
"Leveraged" results in
NOTE: recall that debt is safer and levels out risk in a
portfolio
LEAST liquid of current assets
In current assets,
NOTE: current assets take less than 12 months to
inventory is the
make liquid
long term assets such as buildings, land, equipment,
Net fixed assets are machinery
NOTE: assets that are not current
suppliers for what is bought on credit and amount
A/P represents money
owed by a business to suppliers by agreement
paid to
NOTE: A/P is supplies, inventory, or PP&E
an explicit interest bearing arrangement with the
Notes payable involves lender at interest cost
NOTE: notes payable is a long-term liability
maturity
Current liabilities are
NOTE: current liabilities are to be paid within 12
listed in order of
months
https://quizlet.com/1020930475/wgu-c214-financial-mgmt-pass-the-oa-2025-updatecomprehensive-questions-and-verified-answers-complete-sol… 3/16
