Certified Treasury Professional Certification (CTP) – Sample

Using the information provided for question 10, what would the earnings credit change to if the company negotiated a 50% decrease in deposit float ?

A company can pay their supplier by check or by electronic transfer. If the difference between the value date of the payment methods is 4 days from the company�s perspective, what discount should the supplier offer them to get the company to pay on the same day as they did when they paid by check (rounded to the nearest 100th percent)? Assume no difference in the cost of the payment method, an opportunity cost of 8%, and float neutrality.

Company S wants to issue $25,000,000.00 of commercial paper at a discount of 35 bps and a maturity of 27 days. The dealer fee is 10 bps annually and the bank assesses a backup L/C fee of 20 bps. What is the approximate annual interest rate the company pays for this issue of commercial paper?

Company Q has average daily credit sales of $15,875.00. The daily cash sales are $8,750.00. The AR ending balance for June 30 is $387,500.00. What is the average days� sales outstanding for Company Q?

The Company J portfolio consists of two stocks, 65% of Stock A with a return of 7.63% and 35% of Stock B with a return of 3.89%. What is the Company J portfolio return?

Amalgamated Binding Consolidators takes 20 days to convert its raw materials to finished goods, 5 days to sell it, and 15 days to collect its credit sales. What is the company�s days receivable period?

A $100,000 T-bill currently sells for $98,600 and matures in 90 days. What is the 365 day basis yield for this investment?

XYZ Company has a well established commercial paper (CP) program that they use to fund operations. The company is expanding by purchasing a new factory. The CFO is worried about the time and expense needed to issue long-term debt and decides to use the funds they raise in the CP market to pay for the purchase of the factory. This strategy will be successful if:

Which of the following contributes MOST to the marketability of a security?

Loss exposures related to treasury management may include which of the following?