AFP Certified Treasury Professional CTP Dumps in PDF

Free AFP CTP Real Questions (page: 11)

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 marginal tax rate of 35% and a risk- adjusted rate of 13%?

  1. 8.7%
  2. 9.6%
  3. 10.0%
  4. 10.9%

Answer(s): A



A cash manager has determined that the break-even amount for justifying a wire transfer over an ACH for concentration of funds is $145,000. Using a wire instead of an ACH gives the company use of the funds two days earlier to make overnight investments. Based on a wire transfer cost of
$10.00 and an ACH transaction cost of $0.70, what is the company’s overnight investment interest rate on a 365-day year basis?

  1. 0.95%
  2. 1.17%
  3. 2.34%
  4. 2.57%

Answer(s): B



Financing decisions in a budget are used to construct all of the following pro forma financial statement components EXCEPT:

  1. debt.
  2. interest expense.
  3. shareholder’s equity.
  4. inventory.

Answer(s): D



At the end of the year, ABC Company’s actual revenue is $85,000,000 versus budget revenue of $90,000,000. Actual operating expenses are $20,000,000 versus budget operating expenses of $22,000,000. Budget variance analysis would indicate a(n):

  1. favorable revenue variance and an unfavorable operating expenses variance.
  2. favorable revenue variance and a favorable operating expenses variance.
  3. unfavorable revenue variance and a favorable operating expenses variance.
  4. unfavorable revenue variance and an unfavorable operating expenses variance.

Answer(s): C



Which of the following is NOT a drawback to using ROI as a performance measure?

  1. It may be misleading when cash flows are not evenly distributed over time.
  2. It does not consider the profit generated by a project.
  3. It does not include a charge for cost of capital.
  4. It may lead to rejection of a positive NPV project.

Answer(s): B



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12/2/2023 6:31:00 AM

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11/20/2023 11:57:00 AM

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5/15/2023 5:38:00 AM

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7/17/2023 5:22:00 PM

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Wong
12/20/2023 11:34:00 AM

q10 - the answer should be a. if its c, the criteria will meet if either the prospect is not part of the suppression lists or if the job title contains vice president

D
david
12/12/2023 12:38:00 PM

this was on the exam as of 1211/2023

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Tink
7/24/2023 9:23:00 AM

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Jaro
12/18/2023 3:12:00 PM

i think in question 7 the first answer should be power bi portal (not power bi)

9
9eagles
4/7/2023 10:04:00 AM

on question 10 and so far 2 wrong answers as evident in the included reference link.

T
Tai
8/28/2023 5:28:00 AM

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VoiceofMidnight
12/29/2023 4:48:00 PM

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A
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8/3/2023 11:56:00 AM

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11/27/2023 6:12:00 AM

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11/22/2023 1:45:00 AM

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MortonG
10/19/2023 6:32:00 PM

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10/31/2023 12:07:00 PM

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9/3/2023 2:14:00 PM

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8/12/2023 7:56:00 PM

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Miguel
10/5/2023 12:16:00 PM

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N
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11/28/2023 4:52:00 PM

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8/28/2023 1:00:00 AM

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10/31/2023 12:51:00 AM

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12/16/2023 10:54:00 PM

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6/4/2023 10:07:00 PM

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7/18/2023 1:10:00 AM

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