Wgu C214 Final Exam Questions And Answers

WGU C214 FINAL EXAM QUESTIONS AND ANSWERS Coupon Rate - ANSWER- The interest rate that a company promises to pay on bonds Market Rate - ANSWER- The interest rate on other comparable bonds Par Value - ANSWER- The amount payable on maturity of the bond Market rate - ANSWER- Same as YTM - Yield to Maturity Gordon Growth Model - ANSWER- Assumes stable growth rates and does not incorporate risk CAPM Model - ANSWER- Allows to determine expected return on stocks and incorporates riskHow do public companies maximize shareholder value? - ANSWER- By maximizing Earnings Per Share How do private companies maximize shareholder value? - ANSWER- By keeping control within the company Positive credit rating has what effect on capital? - ANSWER- Lowers cost of capital What is cash flow from operating activities? - ANSWER- It is cash flow generated for sale of products and services What is the formula for retained earnings? - ANSWER- Ending retained earnings=Beginning retained earnings + Net Income = Dividends Is depreciation and salvage value on an asset precise or is it an estimate? - ANSWER- It is an estimate What is an example of accounting difference - ANSWER- Companies using different accounting methods What