QUESTION 549
The Treasurer of a company would like to establish an investment policy for the organization. One objective that should be included in the investment policy that would BEST allow the organization to limit its exposure to a particular market sector would be to:

QUESTION 550
The measurement of the significance of any loss exposure depends on:

QUESTION 551
The key parties involved in a disaster recovery plan are generally classified as internal resources or external counterparties. When evaluating the risks of both parties, which of the following can be assumed?

QUESTION 552
A company with $50 million in foreign assets decides to increase its foreign debt by $40 million for a debt ratio of 80%. This action will reduce which exposure?

QUESTION 553
A small for-profit, start-up company is designing a retirement plan with the goal of minimizing costs and operating income volatility while providing a qualified retirement savings vehicle. Which of the following would be the BEST choice?

QUESTION 554
The future value of $60 invested at 8% compounded per year for three years is:

QUESTION 555
XYZ Company has decided to purchase a close competitor. This acquisition would make XYZ Company the 4th largest in its industry allowing it better purchasing power and greater distribution channels. After completing the M&A analysis, it is determined that the combined companies would produce a 40% increase in revenue, reduce manufacturing costs by 30%, but would increase current liabilities by 27%. Which of the following would keep the acquisition from happening?

QUESTION 556
LLZ Company manufacturers metal detectors in California at a cost of $9 per unit. The most expensive component to make is the sensor which goes in the finished product. The cost is $5 per sensor. Last month LLZ acquired a company in Mexico that makes the sensors for $1 per sensor. LLZ plans to move all sensor manufacturing operations to the factory in Mexico. What is the movement of this cost saving process called?

QUESTION 557
Usually, corporations receiving dividends from another corporation can exclude 70 percent of dividend payments from income for tax purposes as long as the stock is owned for at least:

QUESTION 558
The Treasury Manager of a chain of department stores wants to develop a medium-term forecast.
Management plans to open two new stores, and anticipates same-store sales to increase by 15%.
Which of the following items can be predicted with the highest degree of certainty?

QUESTION 559
XYZ Inc. has limited cash flow, total liabilities to total assets greater than 52%, and a high WACC. To help meet the goal of lowering their WACC, the company plans to issue several million dollars of private equity to the chairman of the board. If the company proceeds with this plan, the company may:

QUESTION 560
Which of the following is responsible for liquidating the assets of failed financial institutions?

QUESTION 561
An analyst is performing a lease versus buy analysis on a corporate jet. In the evaluation, a cost is relevant if it is:

QUESTION 562
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 unused portion of line Interest rate on advances is 1-month LIBOR plus 4% 1-month LIBOR is currently 2% Compensating balance requirement of 20% on the outstanding borrowings
——
What is the effective annual borrowing rate for the line of credit?

QUESTION 563
Treasury management systems help cash managers do which of the following?
I) Reduce borrowing expenses
II) Initiate transfers
III) Determine cash position
IV) Obtain account balances

QUESTION 564
Which of the following is true when a company purchases goods using trade credit from suppliers?

QUESTION 565
Which of the following is a characteristic of MOST mutual funds?

QUESTION 566
Which of the following items would be classified as a source of cash on a company’s statement of cash flow?
I) Selling, general, and administrative expense
II) Increase in accounts payable
III) Increase in inventory
IV) Depreciation expense

QUESTION 567
An organization must maintain adequate liquidity to meet:

QUESTION 568
In order to be defined as independent, a corporate director:

QUESTION 569
Which of the following is subject to transaction exposure?

QUESTION 570
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: