Month End Sale 70% Discount Offer - Ends in 0d 00h 00m 00s - Coupon code: save70

Free Access AFP CTP New Release

Page: 12 / 81
Total 1076 questions

Certified Treasury Professional Questions and Answers

Question 45

The following information about a company is at the end of its fiscal year.

The before-tax cost of long-term debt is 10% and the cost of equity is 12%. The marginal tax rate is 35%. The company's current ratio is:

Options:

A.

0.46.

B.

0.59.

C.

0.93.

D.

1.37.

Question 46

The amount of the discount required to renegotiate credit terms in EDI depends on which two of the following?

I. Present value impact of the timing change

II. Credit risks involved

III. Revolving credit agreements

IV. Transaction costs savings

Options:

A.

I and II

B.

I and IV

C.

II and III

D.

III and IV

Question 47

Which of the following credit terms would be MOST appropriate for a seasonal product that a manufacturer wants to sell to a retailer during the product's off-season?

Options:

A.

2/10, net 30

B.

2/10, prox 30

C.

2/10, net 120

D.

3/15, 2/30, net 45

Question 48

Refer to the following information about a company at the end of its fiscal year.

The before-tax cost of long-term debt is 10% and the cost of equity is 12%. The marginal tax rate is 35%.

What is the company's long-term debt to total capitalization ratio?

Options:

A.

0.44

B.

0.67

C.

0.73

D.

0.78

Page: 12 / 81
Total 1076 questions