CompTIA
Checkpoint
ISC
HP
Dell
EC-Council
EXIN
Fortinet
ITIL®
Juniper
PMI
Microsoft
VMware
Avaya
Google
Salesforce
Amazon
Palo Alto Networks
Certiport
ISC2
All Vendors
  2. Home
  3. Exams
  4. AFP
  5. CTP

Free CTP Exam Braindumps (page: 8)

Page 7 of 234
PDF with 932 Questions

A company’s capital structure includes $800,000,000 in total capital, of which $200,000,000 comes from debt. The firm’s after-tax cost of debt is 6%, and its cost of equity is 12%. The marginal tax rate is currently 40%. What is the company’s weighted average cost of capital?

  1. 9.9%
  2. 10.3%
  3. 10.5%
  4. 10.8%

Answer(s): C



The stock of a manufacturing company is priced so that its expected rate of return is below its required rate, as calculated by the Capital Asset Pricing Model (CAPM). Which of the following will occur in an efficient capital market?

  1. Buying pressure for the firm’s stock will drive the price up.
  2. Buying pressure for the firm’s stock will drive the price down.
  3. Selling pressure for the firm’s stock will drive the price up.
  4. Selling pressure for the firm’s stock will drive the price down.

Answer(s): D



XYZ Company is considering selling treasury stock but is concerned about the amount of capital it will raise given the current high volatility of the stock market. What is the BEST strategy a firm can employ to reduce its uncertainty?

  1. Hire an investment banker to underwrite the stock on a full underwriting basis.
  2. Hire an investment banker to issue the stock using a master registration statement.
  3. Hire an investment banker to underwrite the stock with no flotation costs.
  4. Hire an investment banker to underwrite the stock on a best efforts basis.

Answer(s): A



Company A is a large public company with annual revenue of $1.2 billion and high fixed costs. Its stock is listed on the New York Stock Exchange. Company B is a mid-sized company with annual revenue of $100 million and low fixed costs. Its stock is listed on the NASDAQ. Which of the following statements is MOST LIKELY to be true when comparing Company A and Company B?

  1. Company A has greater reporting requirements and more marketable stock than Company B.
  2. Company A has greater reporting requirements and less marketable stock than Company
  3. Company B has greater reporting requirements and more marketable stock than Company A.
  4. Company B has greater reporting requirements and less marketable stock than Company A.

Answer(s): A






Post your Comments and Discuss AFP CTP exam with other Community members:

CTP Exam Discussions & Posts