3/31/25, 9:28 WGU D076 unit tests |
AM
WGU D076 UNIT TESTS EXAM QUESTIONS AND ANSWERS
WITH COMPLETE SOLUTIONS VERIFIED GRADED A++
Terms in this set (50)
maximize owner wealth main goal of a firm
Market where stocks and bonds secondary financial market
are traded after their initial
issuance
Contractual Institution type of an insurance company
coincident the economic indicator of personal income
contractual institution type of an insurance company
executive compensation how can agency problems be reduced through corporate control?
Discount rate another name for the cost of capital
name for the minimum rate of return that an investor or lender will
required rate of return
accept for investments?
Nominal rate=
5% (nominal rate-inflation rate) 8% inflation
rate=3%
real interest rate=?
Recieve all cash flows later than which action reduces the future value of cash flows?
expected
Financial def. of risk the possibility that the realized/actual return is different than what was expected
an unexpected change in interest Example of a market risk factor
rate occurs
trend analysis which method of ratio analysis looks at a firms performance over time
cross-sectional analysis comparing competitor company's ratios is doing what?
liquidity ratios which ratio type are suppliers interested in
average collection period ratio that tells how long it takes a firm to collect accounts recievable?
that 40% of assets are financed by debt what does a debt ratio of 40% indicate?
Comparing the profitability of firms what is operating margin useful for
with different capital structures
a firm takes 70 days to collect average collection period of 70 means what
accounts receivable
a firm doesnt hold enough high inventory turnover means what
inventory and makes customers
wait for their purchased goods
roe considers the capital structure of difference between return on assets (ROA) and return on equity (ROE)?
a company, while roa doesn't
reduce costs to improve overall which action would improve return on equity (ROE)?
profitability
keep records; understand savings, the 3 main budgeting principles
expenses, and income; and eliminate
consumer debt
income, expenses, and savings 3 things one must determine before making a personal budget
track cash flows, monitor cash 3 things to do to make sure budget is effective and on tract to meet
flows, revise budget when financial goals?
needed
making investment and financing whats the point of long term financial forecasts?
decisions
1/
2
AM
WGU D076 UNIT TESTS EXAM QUESTIONS AND ANSWERS
WITH COMPLETE SOLUTIONS VERIFIED GRADED A++
Terms in this set (50)
maximize owner wealth main goal of a firm
Market where stocks and bonds secondary financial market
are traded after their initial
issuance
Contractual Institution type of an insurance company
coincident the economic indicator of personal income
contractual institution type of an insurance company
executive compensation how can agency problems be reduced through corporate control?
Discount rate another name for the cost of capital
name for the minimum rate of return that an investor or lender will
required rate of return
accept for investments?
Nominal rate=
5% (nominal rate-inflation rate) 8% inflation
rate=3%
real interest rate=?
Recieve all cash flows later than which action reduces the future value of cash flows?
expected
Financial def. of risk the possibility that the realized/actual return is different than what was expected
an unexpected change in interest Example of a market risk factor
rate occurs
trend analysis which method of ratio analysis looks at a firms performance over time
cross-sectional analysis comparing competitor company's ratios is doing what?
liquidity ratios which ratio type are suppliers interested in
average collection period ratio that tells how long it takes a firm to collect accounts recievable?
that 40% of assets are financed by debt what does a debt ratio of 40% indicate?
Comparing the profitability of firms what is operating margin useful for
with different capital structures
a firm takes 70 days to collect average collection period of 70 means what
accounts receivable
a firm doesnt hold enough high inventory turnover means what
inventory and makes customers
wait for their purchased goods
roe considers the capital structure of difference between return on assets (ROA) and return on equity (ROE)?
a company, while roa doesn't
reduce costs to improve overall which action would improve return on equity (ROE)?
profitability
keep records; understand savings, the 3 main budgeting principles
expenses, and income; and eliminate
consumer debt
income, expenses, and savings 3 things one must determine before making a personal budget
track cash flows, monitor cash 3 things to do to make sure budget is effective and on tract to meet
flows, revise budget when financial goals?
needed
making investment and financing whats the point of long term financial forecasts?
decisions
1/
2
