100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
Previously searched by you
Previously searched by you
logo
WGU C214 Financial Mgmt Pass the OA 2025 Actual Questions and Answers (2025 / 2026) (Verified Answers) $12.49
Add to cart
Quickly navigate to
Preview
  2.  
  3. WGU C214
  4.  
  5. WGU C214

Exam (elaborations)

WGU C214 Financial Mgmt Pass the OA 2025 Actual Questions and Answers (2025 / 2026) (Verified Answers)
 3 purchases
  • Course
  • WGU C214
  • Institution
  • WGU C214

WGU C214 Financial Mgmt Pass the OA 2025 Actual Questions and Answers (2025 / 2026) (Verified Answers)

Preview 4 out of 31  pages

Document information

  • May 30, 2023
  • 31
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers

Subjects

Written for

  • WGU C214
  • WGU C214

Seller

avatar-seller
TIPSCORE

Reviews received

Content preview

WGU C214 Financial Mgmt Pass the OA

1. Characteristics of preferred stock includes: -dividends in arrears

-dividends are cumulative

-higher payoff claim in a BK (has first dibs in a BK)

-considered "hybrid" (part stock/part bond)

-no fixed maturity date

-no voting rights

-can skip dividend payments

-dividends don't change year-after-year

-used in start ups (IPO)

2. Preferred stock dividends: can go without payment and pay in

arrears the following year

3. Characteristics of common stock are: -voting rights

-no maturity date

-corporate governance

-lower payoff claim in BK

-variable returns

-unlimited earnings potential



,-earnings are in dividends & the increase in price of stock

4. New start up ventures often issue: preferred stock (in an IPO)

5. What stock is considered a hybrid: preferred stock

6. One thing common stock and preferred stock have in common is:

both have no maturity date

7. Which type of security has voting rights: common stock

8. Debt covenants and restrictions help to ensure that: management is

meet- ing bond and shareholder expectations

NOTE: covenants are promises meant to be kept

9. What is true regarding bonds: -when bond matures, bondholder gets

lump sum back

-coupon rate doesn't change

-maturity is in years

-PAR value is typically $1000

-Future value (same as PAR) is typically $1000

10.Bond sells at face value when: required rate of return is equal to the

coupon rate

11.Why are bonds the primary method for raising capital: because


,bonds remove the intermediary costs






, NOTE: IPO's require an intermediary known as a syndicate - a group

of banks underwriting the security issue

12.What type of bond can be traded for stock: convertible bonds

13.What is the interest rate for annual payments of a bond known as:

the coupon rate

NOTE: coupon rate is the established interest rate for the life of the

bond and will remain unchanged

14.Coupon rate is the established rate of the bond and should: never

change

15.Debentures are: secured bonds

NOTE: debentures are a debt instrument (bond) issued to raise cash,

secured against a company's assets and backed by credit,

transferable by the holder, and may also be unsecured

16.Secured loan: has collateral like a mortgage

17.The amount repaid at the expiration date of a bond is: PAR value

NOTE: expiration date is also known as maturity date PAR (or Face

Value) is typically $1000

18.Duration measures: the market risk of a bond and is the percentage

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller TIPSCORE. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for $12.49. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

69052 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 15 years now

Start selling
$12.49  3x  sold
  • (0)
Add to cart
Added