Certified Treasury Professional (CTP) - AFP Actual Exam Questions
Last updated on April 11, 2026
A publicly-traded U.S. company has a German subsidiary which has accumulated significant cash balances. The company needs to pay its quarterly dividend but lacks the funds to make the payment. What is its BEST alternative for obtaining the funds?
Sell additional shares through a secondary offering.
Declare a one-time intercompany dividend.
Obtain private equity funding.
Sign a short-term intercompany loan with the subsidiary.
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A short-term bank line with $20 million of unused capacity and an investment in an overnight money market fund are both forms of which liquidity requirement?
Precautionary
Strategic
Opportunity
Transaction
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If the Federal Reserve Board increased the discount rate, you would expect:
long-term bonds to increase more in price than short-term bonds.
short-term bonds to decrease more in price than long-term bonds.
long-term bonds to decrease more in price than short-term bonds.
that there would be no effect on either long- or short-term bond prices.
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When a company announces a significant and unexpected dividend increase, it signals to the market that management expects:
earnings in future periods will be higher than in past periods.
earnings in future periods will be lower than in past periods.
earnings in future periods will not change.
to split the stock in future periods.
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In terms of capital structure, lease financing normally has the same effect as:
investing.
borrowing.
capitalizing.
lending.
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