WGU D076 Exam Questions with 100%
Correct Answers | Latest Update
Interest rate - percentage of the principal that a lender charges a
borrower for the use of assets.
Cost of capital - Also known as Discount rate, the cost to a firm to use
an investor's capital
Simple interest - Annual Interes...
Real rate - ✔✔same as the growth rate in purchasing power, even though
the formula seems different. This is call the Fisher Effect, an economic
theory created by the economist Irving Fisher.
Why Are Ratios Useful - ✔✔1. Standardization- Ratios standardize
financial data to make them comparable across firms, even those of
distinctly different sizes.
2. Flexibility
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