WGU C214 OA (C214)

C214 Final Exam Practice Questions 2023/2024 Coupon Rate Correct Answer The interest rate that a company promises to pay on bonds Market Rate Correct Answer The interest rate on other comparable bonds Par Value Correct Answer The amount payable on maturity of the bond Market rate Correct Answer Same as YTM - Yield to Maturity Gordon Growth Model Correct Answer Assumes stable growth rates and does not incorporate risk

WGU C214 Financial Management EXAM Q&A | Verified 100% Correct Answers An investment of $10,000 made today at 8% simple interest for 3 years and 9 months will yield in principal and interest of? a. $10,800 b. $10,000 c. $13,000 d. $3,000 Correct Answer Principal + Interest = 10,000 + (10,000 x .08 x 3.75) = $13,000

WGU C214 Financial Management OA 2023/2024 study Guide| Rated 5 stars Characteristics of preferred stock includes Correct 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 change year-after-year -used in start ups (IPO) Preferred stock dividends Correct Answer can go without payment and pay in ...

WGU C214 Financial Management OA PRACTICE Questions 2023/2024 | 100% Correct GRADED A+ Initial Outlay Correct Answer The total dollar amount to begin a project. Cost of Equity Correct Answer How much it costs a firm (in percentage terms) to use equity financing. From the investor's perspective, it is what they require given the riskiness/opportunity cost of the company. From the companies perspective, it is the same rate, but it is what it "costs" to attract those potential investors. ...

WGU C214 Financial Management OA Questions and Answers 2023/2024| 100% Correct Answers (Verified) Trading on the NYSE is executed without a specialist (i.e. a market maker). True or False? Correct Answer False Stocks and Bonds are two types of financial instruments. True or False? Correct Answer True When revenue is matched with cost of sales in an Income statement it is called? Correct Answer Matching principle

WGU C214 Section 6-9 Questions and 100% Correct Answers| Graded A+ What is an indenture? Correct Answer the written agreement between the corporation and the lender detailing the terms of the bond issued What is face value? Correct Answer The dollar amount of the corporate debt to an investor (Usually $1,000) What is the coupon rate? Correct Answer The percent used to calculate annual interest payments to investors

WGU Financial Management C214 2023/2024 STUDY GUIDE Verified study materials WGU C214 Financial Securities (3 types) Correct Answer 1. Gov Securities(treasury bonds)- gov invest in natl defense to freeways. Loans provide by the public to gov. When tax revs fall short to cover expenditures, gov issues bonds from 60 days-30yr

What stock is considered a hybrid - Answer preferred stock One thing common stock and preferred stock have in common is - Answer both have no maturity date Which type of security has voting rights - Answer common stock Debt covenants and restrictions help to ensure that - Answer management is meeting bond and shareholder expectations NOTE: covenants are promises meant to be kept What is true regarding bonds - Answer -when bond matures, bondholder gets lump sum back -coupon rate doesn't...

Banking or Financial Institutions - Answer make money by paying depositors a smaller interest rate than the interest rate charged to borrowers Treasury Securities - Answer generally bonds that are issued by the US government Corporate Bonds - Answer firms borrowing from the public Stocks - Answer a share of ownership in a company Primary financial markets - Answer markets where securities are first issued Syndicate - Answer a group that is temporarily formed to handle a bond or stock issu...

WGU C214 OA Financial Management. What is included in the Income Statement and NOT in the Statement of Cash Flows? - Depreciation Expense Computation of Net Income: A co. sold products in 2014 for $120k and collected $100k cash and remainder in 2015. Co. incurred $70k expenses for 2014 and paid $100k which included $30k for expenses incurred in 2013. What is net income for 2014? - Computation of Net Income (R-E=NI) $50,000 Net Income = $120k - $70k = $50k, or Revenues - Expenses Incurre...