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WGU C214 FINANCIAL MGMT PASS THE OA TEST WITH ALL ANSWERS.
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WGU C214 FINANCIAL MGMT PASS THE OA TEST WITH ALL ANSWERS.
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WGU C214 FINANCIAL MGMT PASS THE OA TEST WITH ALLANSWERS
Characteristicsnofnpreferrednstocknincludesn-ncorrectnanswer--dividendsninnarrears
-dividendsnarencumulative
-highernpayoffnclaimninnanBKn(hasnfirstndibsninnanBK)
-consideredn"hybrid"n(partnstock/partnbond)
-nonfixednmaturityndate
-nonvotingnrights
-cannskipndividendnpayments
-dividendsndon'tnchangenyear-after-year
-usedninnstartnupsn(IPO)
Preferrednstockndividendsn-ncorrectnanswer-
canngonwithoutnpaymentnandnpayninnarrearsnthenfollowingnyear
Characteristicsnofncommonnstocknaren-ncorrectnanswer--votingnrights
-nonmaturityndate
-corporatengovernance
-lowernpayoffnclaimninnBK
-variablenreturns
-unlimitednearningsnpotential
-earningsnareninndividendsn&nthenincreaseninnpricenofnstock
Newnstartnupnventuresnoftennissuen-ncorrectnanswer-preferrednstockn(innannIPO)
Whatnstocknisnconsiderednanhybridn-ncorrectnanswer-preferrednstock
, Onenthingncommonnstocknandnpreferrednstocknhaveninncommonnisn-ncorrectnanswer-
bothnhavennonmaturityndate
Whichntypenofnsecuritynhasnvotingnrightsn-ncorrectnanswer-commonnstock
Debtncovenantsnandnrestrictionsnhelpntonensurenthatn-ncorrectnanswer-
managementnisnmeetingnbondnandnshareholdernexpectations
NOTE:ncovenantsnarenpromisesnmeantntonbenkept
Whatnisntruenregardingnbondsn-ncorrectnanswer--
whennbondnmatures,nbondholderngetsnlumpnsumnback
-couponnratendoesn'tnchange
-maturitynisninnyears
-PARnvaluenisntypicallyn$1000
-Futurenvaluen(samenasnPAR)nisntypicallyn$1000
Bondnsellsnatnfacenvaluenwhenn-ncorrectnanswer-
requirednratenofnreturnnisnequalntonthencouponnrate
Whynarenbondsnthenprimarynmethodnfornraisingncapitaln-ncorrectnanswer-
becausenbondsnremoventhenintermediaryncosts
NOTE:nIPO'snrequirenannintermediarynknownnasnansyndicaten-
nangroupnofnbanksnunderwritingnthensecuritynissue
Whatntypenofnbondncannbentradednfornstockn-ncorrectnanswer-convertiblenbonds
Whatnisntheninterestnratenfornannualnpaymentsnofnanbondnknownnasn-
ncorrectnanswer-thencouponnrate
NOTE:ncouponnratenisnthenestablishedninterestnratenfornthenlifenofnthenbondnandnwilln
remainnunchanged
Couponnratenisnthenestablishednratenofnthenbondnandnshouldn-ncorrectnanswer-
nevernchange
Debenturesnaren-ncorrectnanswer-securednbonds
NOTE:ndebenturesnarenandebtninstrumentn(bond)nissuedntonraisencash,nsecurednaga
instnancompany'snassetsnandnbackednbyncredit,ntransferablenbynthenholder,nandnma
ynalsonbenunsecured
Securednloann-ncorrectnanswer-hasncollateralnlikenanmortgage
Thenamountnrepaidnatnthenexpirationndatenofnanbondnisn-ncorrectnanswer-PARnvalue
NOTE:nexpirationndatenisnalsonknownnasnmaturityndatenPARn(ornFacenValue)nisntypi
callyn$1000
Durationnmeasuresn-ncorrectnanswer-
thenmarketnrisknofnanbondnandnisnthenpercentagendropninnpricencausednbynan1%nincr
easeninnyieldn(rate)
NOTE:nmeasurementnofnthendropninnpricenafternanratenincrease
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