Free WGU Financial-Management Exam Questions

Become WGU Certified with updated Financial-Management exam questions and correct answers

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Total 58 Questions | Updated On: Apr 02, 2026

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Question 1

What is a drawback of using the Gordon growth model for estimating the cost of common equity?

A : It emphasizes short-term financial performance.

B : It requires extensive market data analysis.

C : It is too complex for general use.

D : It applies only to companies with stable dividend policies.

Answer: D

Question 2

What is the significance of Section 302 of the Sarbanes–Oxley Act (SOX)?

A : It requires management to certify the accuracy of financial reports.

B : It requires the external auditor to take responsibility for financial accuracy.

C : It relaxes the requirements for internal control.

D : It allows companies to opt out of internal control reporting.

Answer: A

Question 3

What is a drawback of using the Gordon growth model for estimating the cost of common equity?

A : It emphasizes short-term financial performance.

B : It requires extensive market data analysis.

C : It is too complex for general use.

D : It applies only to companies with stable dividend policies.

Answer: D

Question 4

What is a drawback of using the Gordon growth model for estimating the cost of common equity?

A : It emphasizes short-term financial performance.

B : It requires extensive market data analysis.

C : It is too complex for general use.

D : It applies only to companies with stable dividend policies.

Answer: D

Question 5

In the capital asset pricing model (CAPM), what does a beta (#) greater than 1 signify for a portfolio?

A : The portfolio will always outperform the market.

B : The portfolio has more risk than the market.

C : The portfolio has less risk than the market.

D : The portfolio is expected to move in the opposite direction of the market.

Answer: B

Page: 1 / 12

Total 58 Questions | Updated On: Apr 02, 2026

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