WGU Financial-Management Valid Dump : WGU Financial Management VBC1

Financial-Management real exams

Exam Code: Financial-Management

Exam Name: WGU Financial Management VBC1

Updated: Jun 30, 2026

Q & A: 86 Questions and Answers

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WGU Financial Management VBC1 Sample Questions:

1. A company is expected to pay a dividend of $2 next year, and dividends are expected to grow at 5% per year indefinitely. The required rate of return on the company's stock is 10%.
What is the value of the stock using the Gordon growth model?

A) $40
B) $15
C) $20
D) $61


2. Alliah Company produces vaccines at its pharmaceutical facility near a river. It is considering expanding its operations by building a second facility next to the first. The company holds a public hearing to discuss an extra investment it will make to minimize pollution and keep the river clean and thriving for the native wildlife.
How does this effort support the overall goal of the firm?

A) Alliah Company is focusing on consumers first and foremost to create the greatest value for the company. Reducing this pollution will directly improve the quality of products the company creates.
B) Alliah Company is seeking to focus initially on maximizing value to the shareholders-or owners-of the firm, and the extra costs to prevent pollution will increase the immediate earnings available for owners.
C) Alliah Company is ensuring this action will reduce immediate costs to maximize employee engagement and earnings-because the ultimate goal of a company is employee-oriented.
D) Alliah Company is considering the long-term impact on shareholder value and the company ' s social responsibility to all stakeholders-including the environment and local community.


3. A company has a return on assets (ROA) of 10% and total assets of $500 million.
What is its net income?

A) $5 million
B) $10 million
C) $100 million
D) $50 million


4. In the statement of cash flows, what is the most commonly used method by financial analysts to calculate cash flows from operations (CFO)?

A) The asset disposal method
B) The indirect method
C) The balance sheet method
D) The direct method


5. Which characteristic is unique to preferred stock?

A) Voting rights in company decisions
B) Ownership equity in the company
C) Fixed dividend payments for stockholders
D) Potential for capital appreciation


Solutions:

Question # 1
Answer: A
Question # 2
Answer: D
Question # 3
Answer: D
Question # 4
Answer: B
Question # 5
Answer: C

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