Free WGU Financial-Management Exam Dumps Questions & Answers

What is a primary goal of managing accounts receivable through credit policies?

• A.  To balance customer convenience with the firm's cash flow needs
• B.  To eliminate accounts receivable entirely
• C.  To maximize sales regardless of cash flow impact
• D.  To transition all sales to cash-only transactions

A building owner is undertaking a weatherization project. The owner will make a one-time investment of
$410,000 for caulking, sunshades, and smart thermostats. Annual utility savings are projected to be:
* Year 1: $125,000
* Year 2: $125,000
* Year 3: $140,000
* Year 4: $140,000
* Year 5: $160,000
What is the payback period , in years? (Round up)

• A.  4
• B.  5
• C.  3
• D.  2

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 ability to secure debt financing
• C.  By influencing the company's ability to issue convertible bonds
• D.  By influencing the company's decision to enter new markets

What is a potential drawback of lowering the annual dividend payment?

• A.  It can lead to an immediate increase in the company's stock price.
• B.  It could possibly increase the company's net margin.
• C.  It may cause the company's stockholders to react negatively.
• D.  It might lead to higher sales growth for the company.

What does a beta of less than 1 signify in the capital asset pricing model (CAPM)?

• A.  The investment is risk-free.
• B.  The investment has higher risk than the market.
• C.  The investment has lower risk than the market.
• D.  The investment has a return that is independent of the market.