Amazon
Avaya
Checkpoint
Cisco®
CompTIA
CrowdStrike
EC-Council
EXIN
Fortinet
Google
ISC
ISC2
ITIL®
Juniper
Microsoft
Okta
Palo Alto Networks
Salesforce
All Vendors
  1. Home
  2. ABA
  3. CTFA

ABA CTFA Exam (page: 10)
ABA Certified Trust and Financial Advisor (CTFA)
Updated on: 25-Dec-2025

Viewing Page 10 of 91
CTFA PDF 895 Questions

The long-run objective of financial management is to:

  1. Maximize earnings per share
  2. Maximize the value of the firm's common stock
  3. Maximize return on investment
  4. Maximize market share

Answer(s): B



What are the earnings per share (EPS) for a company that earned $100, 000 last year in after-tax profits, has 200, 000 common shares outstanding and $1.2 million in retained earning at the year end?

  1. $100, 000
  2. $6.00
  3. $0.50
  4. $6.50

Answer(s): C



A single, overall cost of capital is often used to evaluate projects because:

  1. It avoids the problem of computing the required rate of return for each investment proposal
  2. It is the only way to measure a firm's required return
  3. It acknowledges that most new investment projects have about the same degree of risk
  4. It acknowledges that most new investment projects offer about the same expected return

Answer(s): A



The cost of equity capital is all of the following Except:

  1. The minimum rate that a firm should earn on the equity-financed part of an investment
  2. A return on the equity-financed portion of an investment that, at worst, leaves the market price of the stock unchanged
  3. By far the most difficult component cost to estimate
  4. Generally lower than the before-tax cost of debt

Answer(s): D



If the following are balance sheet changes:
$5, 005 decrease in accounts receivable
$7, 000 decrease in cash
$12, 012 decrease in notes payable
$10, 001 increase in accounts payable "use" of funds would be the:

  1. $7, 000 decrease in cash
  2. $5, 005 decrease in accounts receivable
  3. $10, 001 increase in accounts payable
  4. $12, 012 decrease in notes payable

Answer(s): D



Viewing Page 10 of 91



Share your comments for ABA CTFA exam with other users:

JUAN 6/28/2023 2:12:00 AM

aba questions to practice
UNITED STATES