Start Studying for Free Today: Study Guide & Course Breakdown: oapractice.com/d365 Free Practice Questions: questions.oapractice.com/practice-questions/C/?ec=… Free Timed Exams: onlineexamtest.com/exam_sets/financial-management-… Want a Guaranteed Pass? Connect with our premium tutors today: oapractice.com/contact This video walks students through practice questions and answers for the WGU Financial Management II D365 objective assessment, the course covering Microsoft Dynamics 365 Finance concepts that many students at an American university tackle on their way to a business degree. These practice questions target the exact reasoning the OA rewards, from capital structure and leverage to book versus market value weights and business risk. Work through them and you can walk into test day confident and pass on your first attempt. In this video, we'll cover the key D365 Financial Management II topics you need to know: 🔸 Capital Structure Fundamentals: The blend of debt, preferred stock, and common equity funding a firm, debt as cheaper but rigid versus equity as costlier but flexible, priority of claim, the interest tax shield, target capital structure as a forward-looking policy, and how capital structure differs from working capital and the capital budget. 🔸 The Optimal Structure and Cost of Capital: Why optimal means the debt-to-equity mix that maximizes share price and minimizes overall cost of capital, distinguishing it from the minimum-risk structure and the maximum-earnings-per-share structure, the cost-of-capital curve, and reading the trap where earnings per share keep rising past the value-maximizing point. 🔸 Financial Leverage as a Magnifier: The fixed interest charge amplifying results in both directions, the rocket-booster effect on earnings per share and return on equity in booms, the anchor effect and financial distress in downturns, cyclical capital-intensive industries like airlines and homebuilders, and volatility of earnings per share as financial risk. 🔸 Measuring the Mix: Ratios and Weights: The debt ratio as total debt over total capital, the debt-to-equity ratio, book value weights from the balance sheet versus market value weights from current share price times shares outstanding, why market value governs decisions, target weights as intention, and choosing the correct denominator. 🔸 Passive Shifts and Business Risk: Deliberate financing actions like issuing bonds or debt-funded buybacks versus passive market-driven shifts from share-price movement, why a rising price lowers and a falling price raises the market debt ratio, business risk measured by the standard deviation of return on invested capital, operating leverage, breakeven, and the degree of operating leverage. Why does this matter? Passing this OA keeps you on schedule toward a business or accounting degree, and the Dynamics 365 Finance and financial management skills it certifies are exactly what U.S. employers and American accounting firms expect from candidates who work with modern ERP systems. Clearing D365 on the first attempt saves you time and money and builds real confidence for the corporate finance roles waiting on the other side. Before your attempt, run through the free practice questions and timed exams linked above to lock in every concept and spot any weak areas early. 🔔 Don't forget to LIKE, SUBSCRIBE, and hit the bell so you never miss a new WGU OA practice questions and answers session. New videos drop every week to help you reach your goal! Disclaimer: OA Practice is not affiliated with Western Governors University (WGU) or Microsoft. This content was created independently for educational purposes only. #WGU #WGUexam #D365 #Dynamics365 #DynamicsFinance #FinancialManagementII #WGUD365 #WGUstudent #WGUOA #ObjectiveAssessment #CapitalStructure #FinancialLeverage #CostOfCapital #CorporateFinance #PassTheD365 #D365PracticeQuestions #WGUFinance #OAPractice #ERP #MicrosoftCertification