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AFP Certification CTP Updated Exam

Page: 33 / 34
Question 132

A comprehensive payables service can do all of the following EXCEPT:

Options:

A.

send checks to a vendor.

B.

wire funds to a bank.

C.

set up ACH transfers.

D.

concentrate lockbox deposits.

Question 133

The before-tax cost of long-term debt is 10% and the cost of equity is 12%.

The marginal tax rate is 35%. The company's weighted average cost of capital is:

Options:

A.

6.3%.

B.

8.3%.

C.

10.6%.

D.

11.3%.

Question 134

According to the Capital Asset Pricing Model, which of the following would increase the required rate of return, given a beta of 1?

Options:

A.

A decrease in the tax rate

B.

An increase in the T-bill rate

C.

A decrease in the expected market return

D.

An increase in the company’s stock price

Question 135

A United States company must remit a dollar royalty payment to its Japanese subsidiary. Cash settlement of the payment would typically be made by which of the following?

Options:

A.

SWIFT

B.

ACH

C.

CHIPS

D.

Giro system

Page: 33 / 34
Exam Code: CTP
Exam Name: Certified Treasury Professional
Last Update: Nov 24, 2024
Questions: 932
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