QUESTION: 61

A telecommunications company receives a profit of $587,542 from its cellular phone production unit in the year after investing $962,870 in a new product line. What is the first year return on its original investment?

56%
58%
61%
64%

Answer(s): C

Reveal Solution Next Question

QUESTION: 62

A company has a line of credit and a bond trustee agreement with a bank. To prevent a decline in the company’s bond rating from having a negative impact on the company’s line of credit, the bank should have which of the following in place?

Code of conduct
Confidentiality agreement
Notional barrier
Risk profile

Answer(s): C

Reveal Solution Next Question

QUESTION: 63

ABC Company is a national retail company and uses XYZ Bank for its collections and payroll services. XYZ has recently experienced financial problems; what is the greatest risk to ABC Company?

Damage to their working relationship
Deterioration of service quality
Increase in service fees
Loss of assets

Answer(s): D

Reveal Solution Next Question

QUESTION: 64

A real estate development company has excess cash that it would like to invest in one of its properties:

• Property A has shown an ROI of 40%, a residual income of $25,675, and an EVA of $32,678.
• Property B has shown an ROI of 45%, a residual income of $27,635, and an EVA of $29,523.
• Property C has shown an ROI of 55%, a residual income of $22,658, and an EVA of $30,678.
• Property D has shown an ROI of 52%, a residual income of $19,675, and an EVA of $31,523.

In which property should the company invest?

Property A
Property B
Property C
Property D

Answer(s): A

Reveal Solution Next Question

Free CTP Exam Braindumps (page: 17)

QUESTION: 61

QUESTION: 62

QUESTION: 63

QUESTION: 64

CTP Exam Discussions & Posts