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WGU Financial-Management Exam Syllabus Topics:

SectionObjectives
Time Value of Money- Present and future value calculations
- Annuities and perpetuities
Capital Budgeting- Internal rate of return (IRR)
- Payback period analysis
- Net present value (NPV)
Risk and Return- Expected return
- Portfolio risk and diversification
Financial Statement Analysis- Cash flow analysis
- Financial ratios
- Balance sheet and income statement interpretation
Cost of Capital and Valuation- Weighted average cost of capital (WACC)
- Bond and stock valuation basics

WGU Financial Management VBC1 Sample Questions:

A company has just increased its dividend payout ratio.
What effect will this have on the company's sustainable growth rate?

  • A. The sustainable growth rate will increase.
  • B. The sustainable growth rate will remain the same because the increase in the dividend payout ratio will be offset by a decrease in return on equity.
  • C. The sustainable growth rate will decrease.
  • D. The sustainable growth rate will either increase or decrease depending on the result of the change in dividend payouts on the plowback ratio.
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Correct Answer: C  🗳️

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Which practice can help an analyst identify the most relevant financial data and ratios when assessing the financial health of a firm?

  • A. Identifying why differences exist in comparisons between firms and analyzing macroeconomic conditions
  • B. Focusing only on the most recent fiscal year's data
  • C. Assuming financial statements from different firms are directly comparable without adjustments
  • D. Ignoring all ratios except liquidity ratios
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Correct Answer: A  🗳️

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Using the dividend discount valuation information provided, what is the intrinsic value of the stock ?

  • A. $75.80
  • B. $52.40
  • C. $60.00
  • D. $66.55
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Correct Answer: D  🗳️

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Ratios for Freedom Rock Bicycles are shown below, along with industry average ratios.

What are appropriate recommendations for Freedom Rock Bicycles based on this analysis?

  • A. To focus solely on increasing gross margins to match industry levels
  • B. To increase production expenses and invest in more assets
  • C. To reduce non-production expenses and evaluate the company's fixed costs
  • D. To maintain current operating expenses and reduce asset levels to be in line with the industry
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Correct Answer: C  🗳️

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How does country risk affect global financial management decisions?

  • A. It necessitates strategies to mitigate potential losses from instability or unfavorable policies.
  • B. It is typically considered irrelevant in financial planning since it is unpredictable.
  • C. It reduces the complexity of international investments.
  • D. It only affects firms with domestic operations facing international competition.
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Correct Answer: A  🗳️

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