WGU Financial Management VBC1 : Financial-Management

Financial-Management real exams

Exam Code: Financial-Management

Exam Name: WGU Financial Management VBC1

Updated: Oct 01, 2026

Q & A: 86 Questions and Answers

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WGU Financial-Management Exam Syllabus Topics:

SectionObjectives
Time Value of Money- Bond and Stock Valuation
  • 1. Valuation of Preferred Stock
  • 2. Valuation of Bonds
  • 3. Valuation of Common Stock
- Present and Future Value
  • 1. Present Value of a Lump Sum
  • 2. Annuities (Ordinary and Due)
  • 3. Future Value of a Lump Sum
Financial Management Concepts- Financial Environment
  • 1. Objectives of the Financial Manager
  • 2. Agency Problem and Corporate Governance
  • 3. Forms of Business Organization
- Financial Markets and Institutions
  • 1. Financial Institutions
  • 2. Interest Rate Levels
  • 3. Financial Markets
Capital Budgeting- Cash Flow Estimation
  • 1. Depreciation Methods
  • 2. Incremental Cash Flows
- Decision Criteria
  • 1. Internal Rate of Return (IRR)
  • 2. Net Present Value (NPV)
  • 3. Modified IRR (MIRR)
  • 4. Payback Period
Cost of Capital and Capital Structure- Leverage and Capital Structure
  • 1. Optimal Capital Structure
  • 2. Financial Leverage
  • 3. Operating Leverage
- Cost of Capital
  • 1. Cost of Equity (CAPM, DCF)
  • 2. Weighted Average Cost of Capital (WACC)
  • 3. Cost of Debt
Working Capital Management- Current Liabilities Management
  • 1. Trade Credit
  • 2. Short-term Financing
- Current Asset Management
  • 1. Cash Management
  • 2. Inventory Management
  • 3. Receivables Management
Financial Statement Analysis- Financial Statement Basics
  • 1. Balance Sheet
  • 2. Statement of Cash Flows
  • 3. Income Statement
- Ratio Analysis
  • 1. Market Value Ratios
  • 2. Liquidity Ratios
  • 3. Asset Management Ratios
  • 4. Debt Management Ratios
  • 5. Profitability Ratios

WGU Financial Management VBC1 Sample Questions:

Question #1

A stock has a dividend per share of $5 and is expected to grow at a constant rate of 3% indefinitely. The required rate of return is 9%.
What is the value of the stock?

  • A. $57.22
  • B. $100.50
  • C. $171.67
  • D. $85.83
Reveal Solution  Discussion  0

Correct Answer: D  🗳️

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Question #2

What distinguishes a subordinated debenture from a senior debenture?

  • A. A subordinated debenture is issued in a foreign currency.
  • B. A subordinated debenture is secured with collateral.
  • C. A subordinated debenture has a lower claim on assets in the event of liquidation.
  • D. A subordinated debenture has a higher claim on assets in the event of liquidation.
Reveal Solution  Discussion  0

Correct Answer: C  🗳️

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Question #3

What is the difference between market orders and limit orders?

  • A. Market orders execute at a fixed price, while limit orders fluctuate in price.
  • B. Market orders are price-sensitive, while limit orders are time-sensitive.
  • C. Market orders execute at the current price, while limit orders execute at a specified price.
  • D. Market orders are used for selling stocks, while limit orders are used for buying stocks.
Reveal Solution  Discussion  0

Correct Answer: C  🗳️

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Question #4

What is the goal of just-in-time (JIT) inventory management?

  • A. To maximize the storage space utilized
  • B. To minimize holding costs by reducing inventory levels
  • C. To increase the quantity of on-hand inventory
  • D. To extend the cash conversion cycle
Reveal Solution  Discussion  0

Correct Answer: B  🗳️

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Question #5

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

  • A. 0.15
  • B. 2.50
  • C. 0.65
  • D. 4.00
Reveal Solution  Discussion  0

Correct Answer: B  🗳️

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