AFP
CTP · Question #307
(Topic 4) The Treasury Manager of a privately held company is looking to finance new equipment that has a useful life of 5 years. What type of financing would the Treasury Manager MOST LIKELY employ…
The correct answer is D. Installment term loan. See the full explanation below for the reasoning.
Question
- (Topic 4)
The Treasury Manager of a privately held company is looking to finance new equipment that has a useful life of 5 years. What type of financing would the Treasury Manager MOST LIKELY employ to finance the equipment?
Options
- AEquity shares
- BLong-term bond
- CHigh-yield bond
- DInstallment term loan
How the community answered
(29 responses)- A3% (1)
- B17% (5)
- C7% (2)
- D72% (21)
Community Discussion
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