WGU Financial-Management Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| Capital Budgeting | 10% | - NPV, IRR, payback period, profitability index - Cash flow estimation and project evaluation |
| Time Value of Money | 18% | - Effective vs nominal interest rates - Discounted cash flow valuation - Present value, future value, annuities, perpetuities |
| Capital Structure and Financing | 10% | - Dividend policy and payout decisions - Leverage and cost of capital |
| Valuation of Securities | 15% | - Cost of capital components - Bond valuation, yield to maturity, risk characteristics - Stock valuation: dividend growth model, CAPM |
| Financial Statement Analysis | 20% | - Common-size and trend analysis - Income statement, balance sheet, cash flow statement - Ratio analysis: liquidity, profitability, solvency, efficiency |
| Financial Markets and Corporate Objectives | 15% | - Types of financial markets and instruments - Role of financial institutions - Goal of the firm: shareholder wealth maximization |
| Risk and Return | 12% | - Portfolio risk and diversification - Systematic vs unsystematic risk - Beta and Capital Asset Pricing Model |
WGU Financial Management VBC1 Sample Questions:
Question #1
A financial analyst is trying to understand the return that shareholders of a stock receive through dividend payments. The analyst is given the following information:
Company Information-Previous Year
* Revenue: $500,000
* Net Income: $50,000
* Change in Retained Earnings: $30,000
* Change in Total Assets: $40,000
What is the amount of dividends paid during the previous year to shareholders?
A. $40,000
B. $20,000
C. $50,000
D. $30,000
Question #2
To answer this question, refer to the cash flow worksheet and the internal rate of return (IRR) calculations.
The hospital is only interested in accepting projects with an IRR that exceeds 11%. Assuming the hospital has sufficient capital for both projects and is willing to invest for up to 10 years, which project(s) would the hospital accept?
A. Project A
B. Both Project A and Project B
C. Project B
D. Neither Project A nor Project B
Question #3
Rusty RoboTech, a robotics technology company, has provided the following financial information for the year 20X3:
* Sales Revenue: $500,000
* Net Income: $50,000
* Dividend Payout: 40% of Net Income
* Total Assets at the beginning of 20X3: $300,000
* Total Liabilities at the beginning of 20X3: $150,000
* Equity at the beginning of 20X3: $150,000
* Historical Cash-to-Sales Ratio: 5%
* Accounts Receivable-to-Sales Ratio: 15%
* Inventory-to-Sales Ratio: 25%
* Cost of Goods Sold-to-Sales Ratio: 43%
For the year 20X4, Rusty RoboTech projects a 20% increase in sales revenue. Other ratios and the dividend policy are expected to remain the same.
What is the projected inventory value for Rusty RoboTech at the beginning of 20X4?
A. $130,000
B. $140,000
C. $120,000
D. $150,000
Question #4
Which type of security has voting rights associated with it?
A. Common stock
B. Convertible note
C. Secured bond
D. Preferred stock
Question #5
How does country risk affect global financial management decisions?
A. It reduces the complexity of international investments.
B. It necessitates strategies to mitigate potential losses from instability or unfavorable policies.
C. It is typically considered irrelevant in financial planning since it is unpredictable.
D. It only affects firms with domestic operations facing international competition.
Solutions:
| Question #1 Correct Answer: B | Question #2 Correct Answer: B | Question #3 Correct Answer: D | Question #4 Correct Answer: A | Question #5 Correct Answer: B |
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