AFP Certified Treasury Professional CTP Dumps in PDF

Free AFP CTP Real Questions (page: 17)

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, and 60% debt. Its cost of equity is 10%, and its average cost of debt is 4%?

  1. 5.04%
  2. 5.30%
  3. 5.58%
  4. 6.40%

Answer(s): C



When estimating the cost of capital, which of the following financial resources would probably NOT be included in the cost of capital calculation?

  1. Common stock
  2. Long-term debt
  3. Preferred stock
  4. Short-term debt

Answer(s): D



A foreign company could raise capital in the United States using an:

  1. ASP.
  2. ADR.
  3. AR
  4. AVS.

Answer(s): B



The goal of a successful investor relations program is to ensure:

  1. achievement of the company’s earnings-per-share goal.
  2. accurate preparation of financial statements.
  3. on-time filing of reports.
  4. effective two-way communication between a company, the financial community, and other constituencies.

Answer(s): D



When a short-term loan is paid with a lump sum payment and the payment includes both interest and principal, the loan is often referred to as a:

  1. single payment note.
  2. material payment note.
  3. balloon payment note.
  4. commercial note.

Answer(s): A



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381
9/2/2023 4:31:00 PM

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