CTP Exam Dumps - Certified Treasury Professional
The Treasurer for XYZ Manufacturing, Inc. recently exchanged a portion of its euro holdings into U.S. dollars to purchase gas futures contracts. This was done in anticipation of an assumed rise in gas prices due to the continued weakening of the U.S. dollar. Which of the following types of risk is being mitigated?
Assuming a marginal tax rate of 36%, the taxable equivalent yield for an investment with a tax-exempt yield of 3% would bE.
Company XYZ is aggressively expanding globally. It is evaluating four markets: Latin America, Europe, Asia and Middle East.
Latin AmericA. Risk adjusted discount ratE. 15%, Payback period=7 years, IRR=15%
EuropE. Risk adjusted discount ratE. 8%, NPV=$20M
Middle East: Risk adjusted discount ratE. 11%, IRR=12%, NPV=$5M
AsiA. WACC. 9%, Payback=2 yrs, IRR=8%
Based on the information, which two markets will company XYZ MOST LIKELY pursue?
A company may choose to use a derivative to reduce risk on which of the following types of exposure?
I. Currency
II. Interest rate
III. Commodity price
A company converts the expense processing for its sales team from reimbursement by check to providing the team with travel and entertainment cards. Immediately, the company’s expenses for the sales force increase by 10%, with no concurrent increase in sales volumes. What aspect should the company have covered in their policies for card use to prevent the increased expenses?
A company has multiple wholly-owned subsidiaries that issue their own checks which are signed by head office staff. The company decides to move to electronic payments using their bank’s internet-based payment systems to reduce costs. Payments are now initiated by the subsidiaries. What element of the payment policy should be considered if the company still wants to maintain head office control over payments?
A company offers credit terms of net 40, with an opportunity cost of 12% to a customer. What discount would have to be offered for the customer to be indifferent between paying on Day 40 and paying with the discount on Day 10?
All of the following would encourage a company operating nationwide to develop multiple banking relationships EXCEPT: