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Day 5 CTP

Day 5 CTP

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It’s clear you made an effort… but your real performance is still waiting to shine! 😄
Don’t worry—this is just the starting point. With a bit more focus and review, you’ll see a big improvement.
Go back over the material, ask questions, work on the weak areas… and I’m here to support you every step of the way!

Best of Luck!
Dr. Hesham Mokhiemer

واضح إنك حاولت… بس لسه عندك فرصة كبيرة تطوّر مستواك! 😄
ولا تشيل هم—دي مجرد بداية. شوية تركيز ومراجعة إضافية وهتشوف الفرق بنفسك.
ارجع للمواد، اسأل لو في نقطة مش واضحة… وأنا معاك خطوة بخطوة. المهم إنك تكمل وما توقفش

تحياتي
د. هشام مخيمر
Excellent work! This is a very strong performance — you clearly understand the material and are in full control.
Keep the momentum and aim to stay among the top performers.
If you continue with this level of seriousness, hitting 100% is only a matter of time!
Best of Luck!
Dr. Hesham Mokhiemer

ممتاز! أداء قوي جدًا… باين إنك فاهم ومسيطر على المادة بشكل رائع
Top Performers استمر بالشكل ده وخليك من الـ
لو تكمّل بنفس الجدية دي… الوصول للـ 100% ان شاء الله, مسألة وقت بس
تحياتي
د. هشام مخيمر

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Question 1 of 10

1. Question

If a put option with a $40 strike price is purchased when the underlying asset is selling for $44 per unit and a premium of $1 per unit is paid, what price must the underlying asset be at for the exercise of the option to produce a profit?

$37/unit
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$38/unit
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$39/unit
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$46/unit
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Question 2 of 10

2. Question

A treasury professional needs to borrow funds at a fixed rate based on LIBOR to pay for seasonal temporary payrolls and repay the loan using proceeds from accounts receivable. The funds will be needed 6 months from now, but since LIBOR is currently low and expected to rise before then, which of the following can be used to lock in the interest rate without needing to exchange principal or have a margin account?

Fixed-floating interest rate swap.
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Eurodollar contract interest rate future.
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Forward rate agreement (FRA).
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Interest rate cap.
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Question 3 of 10

3. Question

Which of the following is NOT an example of a financial derivative?

Swaps.
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Options .
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Forwards .
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Repos .
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Question 4 of 10

4. Question

In which of the following ways can an organization gain an enhanced borrowing advantage in credit markets?

Use hedging to reduce the variability in expected future cash flows.
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A void hedging to reduce price and counterparty risk.
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Use derivatives because they produce a favorable, immediate impact on cash flow.
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Avoid short-position speculation in favor of long-position speculation.
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Question 5 of 10

5. Question

Which of the following is a practical obstacle to the success of using treasury policy and procedure statements?

The behavior of managers cannot be regulated by declaration through policies and procedures.
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There is no way of enforcing violations of the policies and procedures.
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Policies and procedures cannot be implemented without a company ethics administrator staff position.
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Staff will view the policies and procedures as threatening their ability to succeed.
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Question 6 of 10

6. Question

Once a treasury policy has been developed, which of the following should be part of the formal approval process? Select all that applies:

Review by internal audit and/ or a compliance group.
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Review by board of directors, board committee or executives.
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Review by senior treasury staff.
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Review by functional area managers outside treasury.
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Review by the general public.
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Question 7 of 10

7. Question

Investment safety objectives are usually viewed from the perspective of all of the following EXCEPT.

Credit quality.
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Liquidity.
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Preservation.
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Price volatility.
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Question 8 of 10

8. Question

A division of a toy company has net income of $2,000, short-term debt of $2,000, long-term debt of $5,000 and the shareholder’s equity of $20,000. The division has the opportunity to invest in a new line of collectible cards, which would increase its short-term debt to $3,000, long-debt to $15,000, and net income to $2,600. The overall cost of capital for the toy division’s holding company is 7%. What would the residual income be before and after the investment?

$110 before and -$60 after
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$110 before and $150 after
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$250 before and -$60 after
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$250 before and $150 after
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Question 9 of 10

9. Question

Company A’s earnings available to common shareholders are $95,000, using a $1,000,000 common equity base. The company has no preferred stock outstanding. Company B’s net income is $57,000, using $440,000 in total equity. Company B has $40,000 in preferred stock and paid a $2,000 preferred dividend this year. Which company earns a better return on common equity, and HOW MUCH BETTER a return does it give?

B earns a 13.75% better return on common equity.
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A earns a -5.50% better return on common equity.
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B earns a 4.25% better return on common equity.
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A earns a 5.50% better return on common equity.
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Question 10 of 10

10. Question

Review the selected income statement data below and determine the organization’s degree of financial leverage (DFL) for Year 2.

0.54
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0.8
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1.46
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1.5
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