Selected CTP AFP Certification Questions Answers

Certified Treasury Professional Questions and Answers

Question 73

In which of the following instances does the clientele effect come into play?

Options:

When a company announces its earnings forecast

When a company submits its 10-Q to the SEC

When a company declares a dividend

When a company increases its sales

Question 74

A company sells products to customers on credit, generating accounts receivable. The company uses the accrual accounting method. Once the company collects good funds from its customers, what is the impact on the financial statements of the company?

Options:

Cash balance is not affected, and income is increased.

Cash balance is increased, and income is decreased.

Cash balance is increased, and income is not affected.

Cash balance is increased, and income is increased.

Question 75

Which of the following would be MOST suitable for a risk-averse electronics manufacturer that uses copper in many of its components?

Options:

A put option on copper futures

A short position in copper futures

A floor option on copper futures

A costless collar using options on copper futures

Question 76

A company’s capital structure includes $800,000,000 in total capital, of which $200,000,000 comes from debt. The firm’s after-tax cost of debt is 6%, and its cost of equity is 12%. The marginal tax rate is currently 40%. What is the company’s weighted average cost of capital?

Options:

9.9%

10.3%

10.5%

10.8%

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Selected CTP AFP Certification Questions Answers

Certified Treasury Professional Questions and Answers

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CompTIA

Fortinet

Microsoft

Salesforce