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WGU Financial-Management Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Financial Statement Analysis | 20% | - Ratio analysis: liquidity, profitability, solvency, efficiency - Common-size and trend analysis - Income statement, balance sheet, cash flow statement |
| Topic 2: Valuation of Securities | 15% | - Cost of capital components - Bond valuation, yield to maturity, risk characteristics - Stock valuation: dividend growth model, CAPM |
| Topic 3: Financial Markets and Corporate Objectives | 15% | - Types of financial markets and instruments - Role of financial institutions - Goal of the firm: shareholder wealth maximization |
| Topic 4: Capital Budgeting | 10% | - Cash flow estimation and project evaluation - NPV, IRR, payback period, profitability index |
| Topic 5: Capital Structure and Financing | 10% | - Dividend policy and payout decisions - Leverage and cost of capital |
| Topic 6: Risk and Return | 12% | - Systematic vs unsystematic risk - Beta and Capital Asset Pricing Model - Portfolio risk and diversification |
| Topic 7: Time Value of Money | 18% | - Present value, future value, annuities, perpetuities - Discounted cash flow valuation - Effective vs nominal interest rates |
WGU Financial Management VBC1 Sample Questions:
Question 1
What is a function of the Financial Industry Regulatory Authority (FINRA)?
A. Insuring bank deposits
B. Regulating brokerage firms
C. Managing federal monetary policy
D. Issuing currency
Question 2
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 maintain current operating expenses and reduce asset levels to be in line with the industry
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 focus solely on increasing gross margins to match industry levels
Question 3
What is the relationship between the length of the cash cycle and the amount of cash a firm needs to operate?
A. Companies must keep more cash on hand if they maintain a longer cash cycle.
B. The cash cycle length has no impact on operational cash needs.
C. Shorter cash cycles require more cash to handle rapid transactions.
D. A longer cash cycle reduces the need for operational cash due to increased efficiency.
Question 4
How does the use of historical returns to estimate the cost of common equity differ from the Gordon growth model?
A. It uses market risk as the primary factor.
B. It considers the future growth rate of dividends.
C. It focuses on the company's dividend policy.
D. It is based on past stock performance.
Question 5
Which ratio measures a company's ability to convert its receivables into cash?
A. Inventory turnover
B. Receivables turnover
C. Working capital ratio
D. Current ratio
Solutions:
| Question 1 Answer: B | Question 2 Answer: C | Question 3 Answer: A | Question 4 Answer: D | Question 5 Answer: B |






