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WGU Financial-Management Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| Financial Statement Analysis | 20% | - Income statement, balance sheet, cash flow statement - Ratio analysis: liquidity, profitability, solvency, efficiency - Common-size and trend analysis |
| Time Value of Money | 18% | - Present value, future value, annuities, perpetuities - Discounted cash flow valuation - Effective vs nominal interest rates |
| Capital Structure and Financing | 10% | - Leverage and cost of capital - Dividend policy and payout decisions |
| Valuation of Securities | 15% | - Stock valuation: dividend growth model, CAPM - Cost of capital components - Bond valuation, yield to maturity, risk characteristics |
| Capital Budgeting | 10% | - Cash flow estimation and project evaluation - NPV, IRR, payback period, profitability index |
| Financial Markets and Corporate Objectives | 15% | - Types of financial markets and instruments - Goal of the firm: shareholder wealth maximization - Role of financial institutions |
| Risk and Return | 12% | - Systematic vs unsystematic risk - Portfolio risk and diversification - Beta and Capital Asset Pricing Model |
WGU Financial Management VBC1 Sample Questions:
1. To answer this question, refer to the cash flow worksheet and the internal rate of return (IRR) calculations.
The hospital is only interested in accepting projects with an IRR that exceeds 11%. Assuming the hospital has sufficient capital for both projects and is willing to invest for up to 10 years, which project(s) would the hospital accept?
A) Project B
B) Both Project A and Project B
C) Neither Project A nor Project B
D) Project A
2. What is a function of the Financial Industry Regulatory Authority (FINRA)?
A) Insuring bank deposits
B) Regulating brokerage firms
C) Managing federal monetary policy
D) Issuing currency
3. What is the bid-ask spread?
A) The difference between the price at which a specialist buys and sells a stock
B) The range between the highest and lowest stock prices in a day
C) The current market price of a stock less its initial public offering listing price
D) The commission charged by brokers for each transaction
4. Which ratio measures a company's ability to convert its receivables into cash?
A) Inventory turnover
B) Receivables turnover
C) Working capital ratio
D) Current ratio
5. Which type of security has voting rights associated with it?
A) Common stock
B) Preferred stock
C) Convertible note
D) Secured bond
Solutions:
| Question # 1 Answer: B | Question # 2 Answer: B | Question # 3 Answer: A | Question # 4 Answer: B | Question # 5 Answer: A |






