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Total 932 questions

Certified Treasury Professional Questions and Answers

Question 45

XYZ Company is considering selling treasury stock but is concerned about the amount of capital it will raise given the current high volatility of the stock market. What is the BEST strategy a firm can employ to reduce its uncertainty?

Options:

A.

Hire an investment banker to underwrite the stock on a full underwriting basis.

B.

Hire an investment banker to issue the stock using a master registration statement.

C.

Hire an investment banker to underwrite the stock with no flotation costs.

D.

Hire an investment banker to underwrite the stock on a best efforts basis.

Question 46

What must be measured and monitored to ensure that a company has adequate liquidity?

Options:

A.

Net receivables

B.

Stock price

C.

Short-term borrowing obligations

D.

Net working capital

Question 47

In terms of capital structure, lease financing normally has the same effect as:

Options:

A.

investing.

B.

borrowing.

C.

capitalizing.

D.

lending.

Question 48

A U.S. exporter sells goods to a foreign buyer in U.S. dollars and wants to guarantee that payment is made by the buyer. The exporter would MOST LIKELY require a(n):

Options:

A.

bankers’ acceptance.

B.

documentary collection.

C.

letter of credit.

D.

open account.

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Total 932 questions