Which of the following will directly increase a company's cost in a fee-only bank relationship?
An institutional investor has purchased an investment that provides a fixed rate of return with some potential for delays in payments. The return is 70% tax deductible for this particular investor. What type of investment was MOST LIKELY purchased?
An analyst is performing a lease versus buy analysis on a corporate jet. In the evaluation, a cost is relevant if it is:
A nationwide discount retailer is re-evaluating financing methods since the most-popular and most-expensive electronics “must-have” item for this year is set to ship from factories in China. Which of the following credit facilities would be MOST effective for the retailer to use?
A buyer receives an invoice from a supplier that offers discount terms of 3/10, net 60. What is the effective cost of discount?
A multinational company may use which of the following to locate profits in subsidiaries in low-tax countries?
Some treasury management systems are capable of initiating investment purchases and loan drawdowns automatically. The automating of these transactions is related to which of the following treasury management functions?
The auditors of a private college are examining and auditing the college’s financial statements. The statements are not presented in accordance with GAAP. What should the auditors do?
A treasurer overhears several employees talking about selling their company stock before a pending deal impacts the stock negatively. What action should the treasurer take to control this behavior in the future?
Disbursement float includes which of the following three float time intervals?
In order to increase liquidity, ABC Motor Company bundled its customers’ installment payments and resold them to other investors. This is known as:
A company has negotiated a credit facility with the following terms:
$5,000,000 line of credit
$3,000,000 average borrowing
30 basis point commitment fee on the unused portion of the line
Interest rate on advances is 1-month LIBOR plus 4%
1-month LIBOR is currently 2%
What is the annual interest rate on the line of credit?
The regional offices of ABC Company implemented a system that would allow the employees to pass information between regions in a secure fashion. This system requires that all offices have the same key in order to read messages sent electronically. Which e-commence security type is MOST LIKELY being used?
In a large company, the person who normally oversees both the treasury and the accounting functions is the:
JKL Company has been successful in shortening the time associated with its mail float, processing float and availability float. JKL Company will experience which of the following as a result of these improvements?
ABC Company, a leading provider of office supplies, has successfully implemented EDI based on a request from one of its customers. ABC will not only benefit from the strategic alliance that will result, but as more of ABC’s customers adopt the program, ABC will also experience a positive impact on its:
Based on the above information,
if the company uses the trade-off theory in considering its WACC, how will it finance its growth?
Company XYZ is conservative when investing in their short-term portfolio. XYZ is looking to add the following money market instruments in their own country: a reverse re-purchase agreement, a floating-rate note, and a negotiable certificate of deposit. What types of investment risks are associated with these instruments?
The yield on any short-term investment instrument is a function of the maturity or holding period, the amount paid and:
TESTED 30 Apr 2025
