Wgu C214 Oa Financial Management Exam Questions And Answers

This study source was downloaded by 100000896685776 from CourseHero.com on 03-05-2025 10:27:03 GMT -06:00https://www.coursehero.com/file/226275046/WGU-C214-OA-Financial-Management-Exam-Questions-and-Answers-Latest-2024-2025-Verified-Answerspd/ WGU C214 OA Financial Management Exam Questions and Answers Latest (2024-2025) (Verified Answers) 1) How does a good credit rating from S&P and Moody's affect the firm? - ANSWER>>Lowers the cost of financing. a credit downgrade increases the cost of financing 2) If a firm's risk-return line is above the market risk-return line, what happens? - ANSWER>>The firm's stock price will increase to reduce it expected return to the market level 3) Which will be larger: accrual taxes payable or accounting income tax expense - ANSWER>>Accounting tax expense will be higher; actual taxes based on IRS rules will be lower 4) Which financial ratios measure "efficiency"? - ANSWER>>Asset turnover and Fixed Asset turnover 5) Which ratio is the best measure of a firm's ability to pay bills? - ANSWER>>Quick Ratio 6) Which decision requires using subjective estimates? - ANSWER>>Economic life of a new asset 7) What is the yield to maturity on a bond? - ANSWER>>The return earned from the purchase date to maturity 8) If a firm buys a 30-day CD, where is it carried on the balance sheet? - ANSWER>>Cash and ST in current