CTP Exam Questions

- (Topic 1) Which of the following would be MOST suitable for a risk-averse electronics manufacturer that uses copper in many of its components?

- (Topic 1) When estimating the cost of capital, which of the following financial resources would probably NOT be included in the cost of capital calculation?

- (Topic 1) The stock of a manufacturing company is priced so that its expected rate of return is below its required rate, as calculated by the Capital Asset Pricing Model (CAPM)....

- (Topic 1) The accounting requirement that a product's selling costs be recorded in the same period as the product's revenue is recorded, regardless of when the cash is paid, is a...

- (Topic 1) A deck furniture supply company maintains a large inventory during the summer sales season. One of the PRIMARY benefits of this approach is that the company avoids whic...

- (Topic 1) A company sells products to customers on credit, generating accounts receivable. The company uses the accrual accounting method. Once the company collects good funds fr...

- (Topic 1) Company XYZ is not sure which direction interest rates are headed. Which of the following would be MOST suitable?

- (Topic 1) A company is evaluating a project. What is the appropriate discount rate that it should use if its marginal tax rate is 34%, its capital structure is 40% common equity,...

- (Topic 1) Which of the following is a ratio that is often used by commercial banks to measure a company's leverage and does not include the effect of assets that are difficult to...

- (Topic 1) A bank issues a letter of credit (L/C) and receives a request for payment under the L/C. The buyer notifies the issuing bank not to make payment because there is a disp...

- (Topic 1) Account analysis statements should be examined for which of the following reasons?

- (Topic 1) Which of the following is NOT a key area to consider when establishing treasury policies?

- (Topic 1) The assistant treasurer of a company uses variance analysis comparing actual cash flows with projected cash flows and finds actual is less than forecasted. Which of the...

- (Topic 1) One of the advantages of raising capital through public offerings is that:

- (Topic 1) Convertible securities consist of preferred stock anD.

- (Topic 1) A telecommunications company receives a profit of $587,542 from its cellular phone production unit in the year after investing $962,870 in a new product line. What is t...

- (Topic 1) Company A regularly modifies its capital structure by repurchasing stock. Which one of the following is a true statement?

- (Topic 1) A distribution business has used several bank loans to finance its expansion plans. After a fire destroyed the company's facility and inventory, it went out of business...

- (Topic 1) If a company has $126 million in debt at an average cost of 7% and $234 million in equity at a cost of 11%, what is its weighted average cost of capital, assuming a mar...

- (Topic 1) XYZ Company has one inventory supplier, and title to inventory is transferred to the company during the manufacturing process. Which of the following BEST describes XYZ...

- (Topic 1) A call option for a company has an exercise price of $50. The stock is currently trading at $60. At maturity, what should an investor who paid $3 for the option do?

- (Topic 1) Which one of the following ties a user's private key to a user's public key?

- (Topic 1) Netting is used by which of the following as a cross-border payment technique?

- (Topic 1) Which of the following is NOT a short-term cash forecasting technique?

- (Topic 1) During the 1970s, many companies instituted dividend reinvestment plans (DRIPS). There

- (Topic 1) An instrument that gives the right to buy a stated number of shares of common stock at a specified price is known as:

- (Topic 1) Optimal dividend policy is one that does all of the following EXCEPT:

- (Topic 1) Which of the following is a characteristic of giro systems used in countries in Europe?

- (Topic 1) 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...

- (Topic 1) The KEY decision in using CCD+ and CTX formats for B2B payments is:

- (Topic 1) Which of the following would be expected to happen on the ex-dividend date?

- (Topic 1) For a defined benefit plan,

- (Topic 1) In which of the following instances does the clientele effect come into play?

- (Topic 1) A company hires an investment firm to fully underwrite a new stock issuance. Which of the parties carries the MOST risk?

- (Topic 1) One reason for using a sale and lease-back arrangement in lease financing is to:

- (Topic 1) An optimal concentration system minimizes all of the following EXCEPT:

- (Topic 1) interest and principal, the loan is often referred to as a:

- (Topic 1) In which of the following international cash management methods is title for goods transferred for intercompany sales?

- (Topic 1) A company transmits a payment file of ACH and Fedwire vendor payments to its financial institution to execute. Which article of the Uniform Commercial Code governs thes...

- (Topic 1) abnormally high profits this year. After paying mandatory principal, interest, and taxes, the company has $200 million in surplus cash on hand. Assuming its investor ba...

- (Topic 1) With respect to the Sarbanes-Oxley Act, a company may avoid additional reporting requirements by:

- (Topic 1) The goal of a successful investor relations program is to ensure:

- (Topic 1) ABC Company is a national retail company and uses XYZ Bank for its collections and payroll services. XYZ has recently experienced financial problems; what is the greate...

- (Topic 1) Use the financial statement for XYZ Company in the exhibit to answer this question. What is the cash flow from operating activities for the current year?

- (Topic 1) In a typical swap transaction, two parties agree to exchange:

- (Topic 1) What is the MOST appropriate rate used as the discount rate in calculating NPV?

- (Topic 1) Which agency implements monetary policy through purchases and sales of treasury securities?

- (Topic 2) An employer wishing to reduce operating income volatility would MOST LIKELY offer what type of retirement option to its employees?

- (Topic 2) Which of the following is NOT a method multinational companies (MNC) use to repatriate capital?

- (Topic 2) A company invests all of its short-term excess cash in T-bills on a daily basis. To prevent delays in processing its outgoing wire transfers, the company may ask its ca...