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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)
  • A
    3% (1)
  • B
    17% (5)
  • C
    7% (2)
  • D
    72% (21)

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