WGU C214 Bundled Exams Full Solution Pack

Corporate Finance - focuses on financial decision making by a firms management Investments - various types of financial instruments (stocks, bonds, etc) Banking or Financial Institutions - make money by paying depositors a smaller interest rate than the interest rate charged to borrowers Treasur...

What standards are used to help US investors understand and compare foreign financial statements to domestic financial statements? - Answer-International Financial Reporting Standards When a company is optimizing its resources and maintaining or improving productivity, they are engaging in what h...

How can a private firm appropriately maximize shareholder value? - Answer-By making decisions that keep the control of the business with the owners Why are American regulators focused on international investing in a global marketplace? - AnswerBecause international investing in a global marketplac...

1. The goal of the corporation is to: a. Maximize profits b. Maximize market share c. Maximize stock price d. Minimize risk - Answer-c. Maximize stock price 2. Risk premium is best described as a. Return on risky securities b. Compensation for risk-taking c. Return on stocks d. Expected ret...

The goal of the corporation is to: - Answer-maximize stock price What makes an efficient market? - Answer-Competitive market, liquidity, transparency What is the relationship between risk and required return? - Answer-As risk increases, required return increases. What are the 3 main financial st...

Characteristics of preferred stock includes - Answer--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 chan...

Trading on the NYSE is executed without a specialist (i.e. a market maker). (T/F) - Answer-False Stocks and bonds are two types of financial instruments (T/F) - Answer-True The matching principle in accrual accounting requires that: - Answer-Revenues be recognized when the earnings process is com...

Statement of Cash Flows - Answer-Shows the change in cash balance for a period of time. Focuses only on items where cash is received, or cash is paid. Cash Flow from Operating Activities (CFO) - Answer-Cash flow that a company generates as a result of day-to-day business operations. Deals with Cu...

Trading on the NYSE is executed without a specialist (i.e. a market maker). (T/F) - F Stocks and bonds are two types of financial instruments (T/F) - T The matching principle in accrual accounting requires that: a. Revenues be recognized when the earnings process is complete and matches expenses ...