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IMA CMA-Strategic-Financial-Management Exam Syllabus Topics:
| Section | Objectives |
|---|---|
| Topic 1: Professional Ethics | - Ethical Decision-Making in Financial Management |
| Topic 2: Decision Analysis | - Budgeting and Forecasting Techniques - Performance Measurement and Variance Analysis |
| Topic 3: Corporate Finance | - Capital Structure and Cost of Capital - Working Capital Management |
| Topic 4: Financial Statement Analysis | - Ratio and Performance Analysis - Financial Statement Interpretation |
| Topic 5: Investment Decisions | - Investment Appraisal and Selection - Capital Budgeting Techniques |
| Topic 6: Risk Management | - Enterprise Risk Management - Financial Risk Identification and Mitigation |
IMA CMA Part 2: Strategic Financial Management Sample Questions:
1. Which one of the following statements best describes an offering after an initial public offering where a benchmark stock price will already exist?
A) Private placement
B) Stock repurchase
C) Over-the-counter offering
D) Subsequent or secondary public offering.
2. The Transformer Division of Keller Electrical Supply IS developing its Budget for next year Preliminary estimates for the next year are as follows.
* Sales of 10.000 units
* Variable cost of $350 per unit
* Fixed costs of $800,000
. Net assets utilized on the Transformer Division are $7 million
* Target rate of return on investment required by Keller is 15%
If the Transformer Division utilizes cost-based pricing and uses a markup based on its target rate of return, what price per unit (rounded to the nearest dollar) should it use for the budget?
A) $495
B) $430
C) $535
D) $506
3. A company plans to purchase equipment for $110 000. The equipment is expected to generate an annual cash flow o( $44 500 (of the next three years The company has a predetermined hurdle rate of 9% Using the internal rate of return (IRR). should the company purchase this equipment?
A) Yes, the IRR is greater than the hurdle rate
B) No, the IRR is less than the hurdle rate
C) Yes, the IRR is less than the hurdle rate
D) No, the IRR is greater than the hurdle rate
4. A company has incurred $2,500 to produce its four products. These products can either be sold as is or processed further. The selling prices and additional costs necessary to finish these products ace shown below
A) Products A
B) Product D
C) Product C
D) Products B
5. Marsalls Products Inc. manufactures and sells two products CD-ROMs and DVD's. The latest forecast on me products and their costs tor the coming year is shown in the following table.
Note 1: Fixed manufacturing cost of Si.500 000 per year is allocated to products based on the number of machine hours required to produce the product at a rate of S3 per machine hour The Manufacturing Team leader just informed the CEO that a fire occurred at one of the manufacturing lines and that line would be unavailable for the next 12 months. The result is that mere will only be 400 000 machine Hours available The CEO requested the management team to revise the plan for the coming year based on the new constraint. The Marketing Team leader stated that in order to minimize customer complaints about the shortage, a minimum of 100,000 units of each product should be produced With the new information from the Manufacturing and Marketing teams what is the optimal product mix for the coming 12 months'' Assume Marsalls can sell allot its production.
A) 200,000 CD-ROm's a dn 100,000 DVD
B) 150.000 CD-ROMS and 125.000 DVD
C) 100,000 CD-ROM's and 150,000 DVD'[s
D) 120.000 CD-ROM's 140,000 DVD.
Solutions:
| Question # 1 Answer: D | Question # 2 Answer: C | Question # 3 Answer: A | Question # 4 Answer: B | Question # 5 Answer: A |







