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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 - Present value, future value, annuities, perpetuities - Discounted cash flow valuation |
| Risk and Return | 12% | - Systematic vs unsystematic risk - Portfolio risk and diversification - Beta and Capital Asset Pricing Model |
| Capital Structure and Financing | 10% | - Leverage and cost of capital - Dividend policy and payout decisions |
| Financial Markets and Corporate Objectives | 15% | - Goal of the firm: shareholder wealth maximization - Role of financial institutions - Types of financial markets and instruments |
| Valuation of Securities | 15% | - Bond valuation, yield to maturity, risk characteristics - Cost of capital components - Stock valuation: dividend growth model, CAPM |
| Financial Statement Analysis | 20% | - Income statement, balance sheet, cash flow statement - Common-size and trend analysis - Ratio analysis: liquidity, profitability, solvency, efficiency |
WGU Financial Management VBC1 Sample Questions:
1. What is a primary goal of managing accounts receivable through credit policies?
A) To transition all sales to cash-only transactions
B) To maximize sales regardless of cash flow impact
C) To balance customer convenience with the firm's cash flow needs
D) To eliminate accounts receivable entirely
2. Why might investors choose to invest in junk bonds?
A) They always outperform the stock market in terms of returns.
B) They are backed by government guarantees.
C) They offer guaranteed returns with minimal risk.
D) They offer the potential for higher returns in exchange for higher risk.
3. What is the goal of just-in-time (JIT) inventory management?
A) To maximize the storage space utilized
B) To increase the quantity of on-hand inventory
C) To extend the cash conversion cycle
D) To minimize holding costs by reducing inventory levels
4. What is a limitation of using the capital asset pricing model (CAPM) to estimate the cost of common equity?
A) It does not consider the market return.
B) It requires historical financial data.
C) It applies only to technology companies.
D) It is overly simplistic in its assumptions.
5. Synesthor is a company developing artificial intelligence (AI) to improve the searchability of medical research and make it easier for physicians to access the best knowledge for healthcare. As the company is setting its key objectives for the next period, it recognizes there are many stakeholders it serves.
If Synesthor focuses on what has traditionally been the primary goal of most companies, where will Synesthor center its efforts?
A) Increasing employee satisfaction
B) Focusing solely on customer satisfaction
C) Maximizing shareholder value
D) Expanding the company globally
Solutions:
| Question # 1 Answer: C | Question # 2 Answer: D | Question # 3 Answer: D | Question # 4 Answer: D | Question # 5 Answer: C |
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