The Modern Corporate Treasury Performs Each of the Following Functions

question 14

Multiple Choice

The modern corporate treasury performs each of the following functions EXCEPT

• A) arranging financing for domestic and international trade
• B) consolidating and managing the financial flows of the firm
• C) identifying, measuring, and managing the firm's risk exposures
• D) managing the risks of domestic and international financial transactions
• E) setting sales targets and monitoring progress toward these targets

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Definitions:

Reinvestment

The process of using dividends, interest, or any other form of income generated by an investment to purchase additional shares or units of that investment.

IRR Method

The process of estimating the rate of return on an investment by setting the net present value of all cash flows to zero, to assess its profitability.

MIRR

Modified Internal Rate of Return, a financial measure used to assess the attractiveness of investments by accounting for the cost of borrowing and reinvestment rates.

Cash Flows

The aggregate sum of money entering and exiting a business, notably affecting its cash flow.