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Last Updated: Sep 17, 2026

No. of Questions: 86 Questions & Answers with Testing Engine

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WGU Financial-Management Practice Q&A's

Financial-Management PDF
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WGU Financial-Management Exam Syllabus Topics:

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

WGU Financial Management VBC1 Sample Questions:

Question #1

What is the earnings yield of a stock with earnings per share (EPS) of $2 and a market price of $40?

  • A. 89%
  • B. 50%
  • C. 20%
  • D. 5%
Reveal Solution  Discussion  0

Correct Answer: D  🗳️

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Question #2

How does the global bond market impact the strategies of multinational corporations?

  • A. By reducing the need for currency risk management
  • B. By ensuring fixed interest rates on all international loans
  • C. By enhancing incentives to raise capital domestically
  • D. By offering diverse financing options beyond domestic markets
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Correct Answer: D  🗳️

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Question #3

How does asset tangibility affect a company's capital structure?

  • A. By influencing the company's dividend payout ratio
  • B. By influencing the company's decision to enter new markets
  • C. By influencing the company's ability to secure debt financing
  • D. By influencing the company's ability to issue convertible bonds
Reveal Solution  Discussion  0

Correct Answer: C  🗳️

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Question #4

In the capital asset pricing model (CAPM), what does a beta (#) greater than 1 signify for a portfolio?

  • A. The portfolio is expected to move in the opposite direction of the market.
  • B. The portfolio will always outperform the market.
  • C. The portfolio has less risk than the market.
  • D. The portfolio has more risk than the market.
Reveal Solution  Discussion  0

Correct Answer: D  🗳️

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Question #5

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. $150,000
  • B. $120,000
  • C. $130,000
  • D. $140,000
Reveal Solution  Discussion  0

Correct Answer: A  🗳️

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