WGU C214 Bundled Exams with complete solutions

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...

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

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

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...

Coupon Rate - Answer-The interest rate that a company promises to pay on bonds Market Rate - Answer-The interest rate on other comparable bonds Par Value - Answer-The amount payable on maturity of the bond Market rate - Answer-Same as YTM - Yield to Maturity Gordon Growth Model - Answer-Assumes ...

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...

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...

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...