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Ace Your CTP AFP Certification Exam

Page: 11 / 35
Total 932 questions

Certified Treasury Professional Questions and Answers

Question 41

Company A regularly modifies its capital structure by repurchasing stock. Which one of the following is a true statement?

Options:

A.

Investors may feel that management is manipulating the stock price.

B.

Stock repurchases are not an attractive alternative to dividend payments.

C.

Partial disclosure to the SEC is required for repurchases.

D.

Stock repurchases do not offer tax deferral advantages over dividends.

Question 42

The stock of a manufacturing company is priced so that its expected rate of return is below its required rate, as calculated by the Capital Asset Pricing Model (CAPM). Which of the following will occur in an efficient capital market?

Options:

A.

Buying pressure for the firm’s stock will drive the price up.

B.

Buying pressure for the firm’s stock will drive the price down.

C.

Selling pressure for the firm’s stock will drive the price up.

D.

Selling pressure for the firm’s stock will drive the price down.

Question 43

The KEY decision in using CCD+ and CTX formats for B2B payments is:

Options:

A.

whether to keep the payment and remittance information together or separate.

B.

whether to use the Internet or an EDI spoke to transmit electronic payments.

C.

whether to use an EDI or a UN/EDIFACT protocol to transfer the value electronically.

D.

whether an evaluated receipts or paid-on-production technique is being used for the transfer.

Question 44

Which of the following is MOST LIKELY to have a significant impact on the financial condition of an organization?

Options:

A.

Defined benefit pension plans

B.

Defined contribution pension plans

C.

401(k) plans

D.

Tax-deferred annuities

Page: 11 / 35
Total 932 questions