Free AFP CTP Exam Questions

Become AFP Certified with updated CTP exam questions and correct answers

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Total 932 Questions | Updated On: Oct 28, 2025

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Question 1

A company is considering issuing debt in a market environment in which there is a larger than normal spread between high- and low-risk investments. Among several factors, what are the concerns regarding investor behavior that the treasurer will MOST need to consider?

A : tching maturity

B : ailability of collateral

C : pital structure

D : ight to quality

Answer: D

Question 2

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?

A : 9.9%

B : 10.3%

C : 10.5%

D : 10.8%

Answer: C

Question 3

Company ABC needs external capital to finance a new product line. Its operating leverage is high, and its revolving credit agreement contains a ratings trigger. What will Company ABC MOST LIKELY do to finance its new product line?

A : ue convertible debentures

B : ue long-term notes.

C : ue common stock.

D : retained earnings.

Answer: C

Question 4

This question is based on the following data describing a company's actual deposits.

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If a five-day moving average is used, what was the deposit forecast for day six?

A : $75

B : $85

C : $90

D : $110

Answer: C

Question 5

Evaluating the liquidity needs of an organization is a function of:

A : ng-term investment yield forecasting

B : ng-term cash flow forecasting.

C : ort-term investment yield forecasting.

D : ort-term cash flow forecasting.

Answer: D

Page: 1 / 187

Total 932 Questions | Updated On: Oct 28, 2025

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