WGU C214 FINC 6000 Financial Management READINESS ASSESSMENT GUIDE Q & S 2025/2026

1. Which of the following best describes the concept of Weighted
Average Cost of Capital (WACC)?
 a) The average interest rate a company pays on its debt
 b) The average return required by all of a company’s investors
 c) The cost of equity financing only
 d) The company's total liabilities divided by its total assets
 Answer: b) The average return required by all of a
company’s investors
 Rationale: WACC is a calculation of a firm's cost of capital
wherein each category of capital is proportionately weighted.
2. In healthcare finance, a major benefit of capitation payment
models is:
 a) It encourages overutilization of services
 b) It provides predictable revenue tracking
 c) It ensures unlimited access to healthcare services
 d) It removes the focus on preventive care
 Answer: b) It provides predictable revenue tracking
 Rationale: Capitation models enable healthcare providers to
predict their revenue more accurately as payments are based on a
per-member-per-month basis.