WGU D076 ACTUAL EXAM WITH REAL QUESTIONS AND WELL VERIFIED ANSWERS || ALREADY GRADED A+ || GUARANTEED PASS | LATEST EXAM 2024/2025
5 views 0 purchase
Course
WGU D076 ACTUAL
Institution
WGU D076 ACTUAL
WGU D076 ACTUAL EXAM WITH REAL
QUESTIONS AND WELL VERIFIED ANSWERS ||
ALREADY GRADED A+ || GUARANTEED PASS |
LATEST EXAM 2024/2025
Why would bondholders set bond contracts that are very strict to deter the
company from taking on risky projects? - ANSWER-Bondholders are primarily ...
WGU D076 ACTUAL EXAM WITH REAL
QUESTIONS AND WELL VERIFIED ANSWERS ||
ALREADY GRADED A+ || GUARANTEED PASS |
LATEST EXAM 2024/2025
Why would bondholders set bond contracts that are very strict to deter the
company from taking on risky projects? - ANSWER-Bondholders are primarily
interested in making sure they will be paid back.
Which kind of projects are bondholders interested in? - ANSWER-Safe projects
with a higher chance of providing sufficient compensation
What is the third step in finding a solution to an ethical dilemma? - ANSWER-
Consider all stakeholders involved
How can agency costs be mitigated? - ANSWER-Aligning managers' interests with
shareholders' interests
Why might a manager manipulate accounting procedures? - ANSWER-To make
the company's performance look good
Jack is a personal financial advisor. He is with a new client, and the client is asking
him what he recommends for her portfolio. Jack knows that his firm's investment
product performed well last year, but its performance changes from year to year—
some years it is better than the market, and some years it is not. Also, the fee to
invest in the product is higher than the fee to invest in a market index fund. If Jack
,sells his company's investment product, the customer's loyalty to the company is
doubled. Which actions should Jack take? - ANSWER-Give a personal
recommendation of the company's product while explaining its performance
relative to the market over the past several years.
.
In which type of market would a company issue bonds or stocks for the first time?
- ANSWER-Primary market
Which type of financial institution is a mutual fund? - ANSWER-Investment
institution
Which financial institution specializes in managing and administering retirement
funds? - ANSWER-Pension funds
Which type of economic indicator is the consumer price index? - ANSWER-
Lagging indicator
What does the term ethical refer to? - ANSWER-The accepted standards of
conduct that guide a person's behavior
A company's officers and board of directors are selling their stocks in the firm at
higher prices due to false accounting reports that made the stock seem more
valuable than it truly was. Which ethical issue is occurring in this situation? -
ANSWER-Agency problem due to conflicting interests
Which type of interest rate is the rate at which invested money grows for a certain
period time? - ANSWER-Nominal rate
,What is the compensation for risk given to investors called? - ANSWER-Risk
premium
What does the risk-free rate indicate? - ANSWER-Inflation and opportunity cost
What is the inflation rate? - ANSWER-The rate at which the average price level of
a basket of goods and services in an economy increases
Why is the required rate of return also known as the hurdle rate? - ANSWER-It is
the minimum rate that a firm must surpass to accept a project.
What is the name for the interest rate expressed on an annual basis? - ANSWER-
Annual percentage rate
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 -
ANSWER-Fisher Effect
An activity ratio found by sales divided by fixed assets. Go To - ANSWER-Fixed
Asset Turnover (FAT)
An expense that you do not have direct control over and that remains constant from
period to period. Go To - ANSWER-Fixed Expenditures
Another name for bonds; a financial security in which the borrower pays a fixed
interest payment to investors each year. Go To - ANSWER-Fixed-income
Securities
, The worth of cash flows in terms of the dollar amount in the relative future. Go To
- ANSWER-Future Value
A formula used to value common stock based on the assumptions that dividends
are paid every year and grow at constant rate forever. Go To - ANSWER-Gordon
Growth Model
A profitability ratio found by gross profit divided by sales. Go To - ANSWER-
Gross Margin
Cash flows that result from accepting a project. Go To - ANSWER-Incremental
Cash Flows
The rate at which the average price level of a basket of chosen goods and services
in an economy increases over a period of time. Go To - ANSWER-Inflation
Generating cash or stock from the sales or IPO of companies in the portfolio of
investments. Go To - ANSWER-Harvest
The return over the entire period that an investor owns a financial security. Go To -
ANSWER-Holding Period Return
The required rate of return that a company expects to earn in order to consider a
project. Go To - ANSWER-Hurdle Rate
A security that has some elements that resemble equity and others that resemble
debt. Go To - ANSWER-Hybrid Security
The benefits of buying summaries with Stuvia:
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
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
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 winnieelizabeth424. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $21.49. You're not tied to anything after your purchase.
