- Exam Code: Financial-Management
- Exam Name: WGU Financial Management VBC1
- Updated: Oct 05, 2026
- Q & A: 86 Questions and Answers
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| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Risk and Return | 12% | - Beta and Capital Asset Pricing Model - Systematic vs unsystematic risk - Portfolio risk and diversification |
| Topic 2: Capital Structure and Financing | 10% | - Dividend policy and payout decisions - Leverage and cost of capital |
| Topic 3: Time Value of Money | 18% | - Effective vs nominal interest rates - Discounted cash flow valuation - Present value, future value, annuities, perpetuities |
| Topic 4: Financial Statement Analysis | 20% | - Ratio analysis: liquidity, profitability, solvency, efficiency - Income statement, balance sheet, cash flow statement - Common-size and trend analysis |
| Topic 5: Capital Budgeting | 10% | - NPV, IRR, payback period, profitability index - Cash flow estimation and project evaluation |
| Topic 6: Financial Markets and Corporate Objectives | 15% | - Types of financial markets and instruments - Role of financial institutions - Goal of the firm: shareholder wealth maximization |
| Topic 7: Valuation of Securities | 15% | - Bond valuation, yield to maturity, risk characteristics - Stock valuation: dividend growth model, CAPM - Cost of capital components |
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