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WGU Financial Management VBC1 Sample Questions:
1. What is the purpose of the Sarbanes-Oxley Act requirement for the board of directors to effectively represent shareholders?
A) To represent shareholders' interests in good faith
B) To manage daily operations
C) To ensure the board's financial gain
D) To increase stock prices
2. What is systematic risk in the capital asset pricing model (CAPM)?
A) The market-wide risk that affects all securities
B) The risk of losing the entire investment
C) The risk associated with specific companies
D) The risk associated with poor diversification
3. Using the dividend discount valuation information provided, what is the intrinsic value of the stock ?
A) $60.00
B) $52.40
C) $75.80
D) $66.55
4. What is the effect of exchange rate fluctuations on multinational corporations' financial management?
A) They make currency risk less important because financial planning is done in dollars.
B) They stabilize international investment returns across countries.
C) They decrease the complexity of financial reporting and analysis.
D) They necessitate the use of hedging strategies to mitigate the impact of currency fluctuations.
5. 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 balance sheet method
B) The indirect method
C) The asset disposal method
D) The direct method
Solutions:
| Question # 1 Answer: A | Question # 2 Answer: A | Question # 3 Answer: D | Question # 4 Answer: D | Question # 5 Answer: B |







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