A company that is considering using a central lockbox for collections has conducted an initial study and determined the following:

What will be the annual net dollar benefit to the company if it uses a lockbox?

• A.$22,800
• B.$20,700
• C.$13,800
• D.$17,400

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XYZ Bank would like to conduct some foreign exchange transactions with JKL Bank. JKL isn't the most liquid and could have some credit risk. XYZ Bank should suggest which of the following in order to eliminate risk?

• A.Straight-through processing
• B.Forward rate contract
• C.Continuous Linked Settlement
• D.Pre-authorized draft

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XYZ Company is a fairly new and high growth company funded by venture capital. Which of the following performance measures is it MOST LIKELY to use?

• A.Economic value added
• B.Net present value
• C.Free cash flow
• D.Residual income

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What do MOST companies try to maintain due to the signaling effect and clientele effect?

• A.A stable policy of retained earnings
• B.A dividend reinvestment plan
• C.A consistent payment date
• D.A stable dividend policy

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Merchant XYZ has total credit card sales of $20,000 for one day with an average ticket of $200. The merchant's interchange reimbursement fees are 2% and transactions fees are $0.05. This merchant receives net settlement. Which of the following is the value of the deposit for that day?

• A.$20,000
• B.$19,600
• C.$19,595
• D.$19,995

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