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WGU C214 LATEST EXAM 2024/2025 VERIFIED QUESTIONS AND ANSWERS GRADED A+
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WGU C214 LATEST EXAM 2024/2025 VERIFIED QUESTIONS AND ANSWERS GRADED A+
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WGU C214 OBJECTIVE ASSESSMENTWGU C214 LATEST EXAM 2024/2025 VERIFIED
QUESTIONS AND ANSWERS GRADED A+
Why does a firm's investment opportunities affect it dividend payout ratio?
a. Maximization of shareholder wealth strategy
b. Limited access to market financing
c. Attempts to increase stock price
d. All of the above
d
If two annuities have the same payments and term, why is an Annuity Due more
valuable than an Ordinary Annuity?
a. The have equal value
b. Annuity Due payments occur earlier
c. Annuity Due uses a lower discount rate
d. Ordinary annuities are consider more risky
b
What is the impact of rising interest rates on foreign exchange?
a. Makes USD decline in value
b. Has no impact on USD
,WGU C214 OBJECTIVE ASSESSMENT
c. Increases the value of USD
d. Increases the value of EUR
c
In cash flow statements, which section reflects so-called "spontaneous" accounts
which vary with sales?
a. Cash flow operations
b. Cash flow investing
c. Cash flow financing
d. Cash flow Sales
a
What are the practical disadvantages of the Gordon model for equity valuation?
a. How to use if no dividends are paid
b. Must project dividends "forever" into the future.
c. Does not address the appropriate discount rate
d. All of the above
d
What factor determines the "market risk premium" on stocks?
,WGU C214 OBJECTIVE ASSESSMENT
a. The level of Treasury yields
b. The investor-perceived riskiness of stocks
c. Seasonality
d. Projected future earnings
b
Why would a company buy back outstanding stock?
a. To boost the price of the stock
b. To increase financial leverage
c. Lack of investment opportunities
d. All of the above
d
Which factor does NOT affect a firm's WACC?
a. The market risk premium
b. The tax rate
c. Treasury yields
d. The exchange rate
d
, WGU C214 OBJECTIVE ASSESSMENT
Why should an investor diversify the portfolio?
a. To achieve a better combination of risk and return
b. To avoid putting "all eggs in one basket"
c. Stock returns are a function of systematic risk
d. All of the above
d
Which statement about a PE ratio is false?
a. High PE ratios reflect higher expected growth rates
b. Low PE stocks are cheap
c. PE is the ratio of price to earnings
d. High Beta stocks have lower PE ratios
b
If a firm cannot access markets sufficiently to meet their DFN, what strategies
might they use?
a. Slow sales growth
b. Lower dividend payout
c. Increase the net margin
d. All of the above.
d
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