AFP CTP Exam Questions
Certified Treasury Professional (Page 15 )

Updated On: 17-Feb-2026

One of the advantages of raising capital through public offerings is that:

  1. it reduces fluctuations in the price of capital.
  2. it reduces the costs of managing reporting and disclosure.
  3. large amounts of debt and equity can be raised at the risk-free rate.
  4. large amounts of debt and equity can be raised at prevailing rates.

Answer(s): D



In terms of capital structure, lease financing normally has the same effect as:

  1. investing.
  2. borrowing.
  3. capitalizing.
  4. lending.

Answer(s): B



One reason for using a sale and lease-back arrangement in lease financing is to:

  1. create an infusion of cash into the company.
  2. benefit from tax advantages from depreciation.
  3. account for income or costs in one period.
  4. eliminate off-balance sheet debt.

Answer(s): A



Convertible securities consist of preferred stock and.

  1. treasury stock.
  2. common stock.
  3. bonds.
  4. tracking stock.

Answer(s): C



A public company’s risk profile is currently in balance. The management’s mission statement is to minimize stock devaluation. However, it is forecasting a need for working capital in the short term. Which of the following solutions would BEST assist management in accomplishing its mission?

  1. Redeem outstanding shares
  2. Issue additional shares
  3. Use debt financing
  4. Pay out dividends

Answer(s): C






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