
WGU Financial Management VBC1 - Financial-Management Exam Questions
QUESTION NO: 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 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?
Correct Answer: A
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QUESTION NO: 2
Alliah Company produces vaccines at its pharmaceutical facility near a river. It is considering expanding its operations by building a second facility next to the first. The company holds a public hearing to discuss an extra investment it will make to minimize pollution and keep the river clean and thriving for the native wildlife.
How does this effort support the overall goal of the firm?
Alliah Company produces vaccines at its pharmaceutical facility near a river. It is considering expanding its operations by building a second facility next to the first. The company holds a public hearing to discuss an extra investment it will make to minimize pollution and keep the river clean and thriving for the native wildlife.
How does this effort support the overall goal of the firm?
Correct Answer: D
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QUESTION NO: 3
What is a limitation of using the capital asset pricing model (CAPM) to estimate the cost of common equity?
What is a limitation of using the capital asset pricing model (CAPM) to estimate the cost of common equity?
Correct Answer: D
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QUESTION NO: 4
According to the capital asset pricing model (CAPM), how is a stock with a beta of 1.0 expected to perform relative to the market?
According to the capital asset pricing model (CAPM), how is a stock with a beta of 1.0 expected to perform relative to the market?
Correct Answer: B
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QUESTION NO: 5
What is the difference between market orders and limit orders?
What is the difference between market orders and limit orders?
Correct Answer: B
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QUESTION NO: 6
Use Whole Pine Inc.'s financial statements for 20X3 below to answer the following question.
What is Whole Pine Inc.'s total asset turnover for 20X3?


Use Whole Pine Inc.'s financial statements for 20X3 below to answer the following question.
What is Whole Pine Inc.'s total asset turnover for 20X3?


Correct Answer: C
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QUESTION NO: 7
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?
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?
Correct Answer: C
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QUESTION NO: 8
Which practice can help an analyst identify the most relevant financial data and ratios when assessing the financial health of a firm?
Which practice can help an analyst identify the most relevant financial data and ratios when assessing the financial health of a firm?
Correct Answer: D
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QUESTION NO: 9
What is the dividend yield of a stock that pays annual dividends of $4 per share and has a current market price of $80?
What is the dividend yield of a stock that pays annual dividends of $4 per share and has a current market price of $80?
Correct Answer: C
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