Which cost benefit analysis technique uses the methodology to find where the present value of each project’s cash inflows equals the present value of each project’s outflows?
A trader of ABC Bank executed and audited his own trades. Assigning these two functions to the same person introduced which one of the following risks to the bank?
A company employs several short-term credit facilities at any one time to meet its liquidity needs and has consistently demonstrated the ability to service this debt as required. However, because of a temporary breach of a financial covenant of one agreement, all of the company’s credit facilities were declared in default. All the credit agreements must have had which of the following types of clause?
Which of the following statements are true about collected balances?
I. They can be lower than ledger balances.
II. They are influenced by the bank's availability schedule.
III. They exclude negative account balances.
IV. They may generate an earnings credit.
T-bill discount rate = 5.85%
T-bill face value = $100,000
Initial term = 90 days
What is the bond equivalent yield on this T-bill?
Company A anticipates the following cash inflows and outflows for the next three months:
If the company's treasurer is preparing a cash-flow projection for Month 2, and he is focusing purely on items that can be projected with a fair degree of certainty, what will the net projection be?
Check MICR line information includes which of the following?
I. Bank of deposit identification number
II. Payee bank identification number
III. Federal Reserve bank code
IV. Payor's account number
Which of the following statements are true about the use of different discount rates for different types of projects?
I. Low-risk, short-term projects may be evaluated by using a short-term opportunity cost.
II. High-risk projects may be evaluated by using a discount rate that is greater than the company's normal opportunity cost.
III. A short-term investment (or borrowing) rate may be used as the company's short-term discount rate.
IV. The use of a lower discount rate for riskier projects forces riskier projects to earn higher rates of return.
A company has average monthly sales of $2,700, of which 5 percent is on a cash basis, with the remaining sold on open account. The company's accounts receivable aging schedule at the end of March is as follows:
What is the company's DSO?
A treasurer’s role in budgeting is primarily to do which of the following?
A treasury project manager is tasked with improving day’s sales outstanding. The company, a major retailer, sells 70% of its products to businesses. The project manager has convinced the Treasurer to proceed with purchasing $500,000 worth of equipment to convert the checks they receive to electronic form. What did the project manager overlook in making the decision?
An auto manufacturing plant in Michigan has high scheduled demand for its product. If the company does not have a long-term contract for raw materials, what type of exposure could it face?
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 weighted average cost of capital is:
ACCOUNTS RECEIVABLE AT THE END OF MARCH
On the basis of the accounts receivable balance pattern above and April sales of $600, the cash flow forecast for April is:
Each of the following statements is true of both defined benefit plans and defined contribution plans EXCEPT:
The PRIMARY difference between money market instruments and capital market instruments is that capital market instruments are securities that are:
Which of the following is an example of an intangible asset?
Which of the following situations is the best example of transaction exposure?
Which of the following payment instruments can provide predictable collection float?
I. Wire transfer
II. Check
III. ACH
IV. Cash
A company that has an unusual spike in earnings in any given year is MOST LIKELY to declare which type of dividend?
