CTP Questions - CTP New Practice Questions Download & Certified Treasury Professional - Omgzlook

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CTP PDF DEMO:

QUESTION NO: 1
What do MOST companies try to maintain due to the signaling effect and clientele effect?
A. A stable policy of retained earnings
B. A stable dividend policy
C. A consistent payment date
D. A dividend reinvestment plan
Answer: B

QUESTION NO: 2
The following information about a company is at the end of its fiscal year.
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 current ratio is:
A. 0.46.
B. 0.59.
C. 0.93.
D. 1.37.
Answer: D

QUESTION NO: 3
Which section of the statement of cash flows includes items that represent the cash inflows and outflows related to the daily functions of a company?
A. Cash flow from financing activities
B. Cash flow from investing activities
C. Change in cash balance
D. Cash flow from operating activities
Answer: D

QUESTION NO: 4
Which of the following are examples of covenants in loan agreements?
I.Financial ratios II.Corporate resolutions III.Borrower limitations IV.Borrower obligations
A. I and III
B. II and III
C. I, II, and IV
D. I, III, and IV
Answer: D

QUESTION NO: 5
A small regional bank is losing market share in fiduciary services and the CEO has decided to scale back the trust department. Which of the following is considered a core service of a trust department?
A. Paying agent for dividend and interest payments
B. Monitoring compliance with audit procedures
C. Providing consulting services in debt origination
D. Processing drafts for collection.
Answer: A

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Updated: May 27, 2022