AFP Certified Treasury Professional CTP Question # 508 Topic 28 Discussion

AFP Certified Treasury Professional CTP Question # 508 Topic 28 Discussion

CTP Exam Topic 28 Question 508 Discussion:
Question #: 508
Topic #: 28

ABC Company is a net borrower with a weighted average cost of capital of 11.5%. What kind of bank fee arrangement is it likely to prefer?


A.

Fee compensation


B.

Balance compensation


C.

Average balance compensation


D.

Average fee compensation


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