IMA CMA Strategic Financial Management Practice Exams
Last updated on Apr 06,2025 - Exam Code: CMA Strategic Financial Management
- Exam Name: CMA Part 2: Strategic Financial Management Exam
- Certification Provider: IMA
- Latest update: Apr 06,2025
All of the following describe ethical leaders except
- A . dedicated leaders who can keep promises and commitment
- B . flexible leaders how new ethical behavior to be negotiable
- C . supportive leaders who encourage employees to adhere to company policy
- D . leaders who demonstrate high ethical standards
A retail company sells numerous products m its one department store.
The income statements tot two of these products are shown below
After reviewing the income statements, the president is considering drooping one or both products.
Which produces), if any should the company discontinue?
- A . Both Product A and Product B
- B . Product A only
- C . Product B only
- D . Neither Product A nor Product B
Abex Employment Agency has requested an increase in the firm’s line of credit, and the bank is reviewing Abex’s sales and collections history Although the firm’s sales have increased the bank is concerned about the credit quality of the firm’s customers
Based on the following information calculate the average collection period for the firm Use a 365-day year in your calculations.
- A . 80 days
- B . 88 days
- C . 99 days
- D . 101 days
To minimize me risk of a two-stock portfolio, a company should most likely purchase stocks that have
- A . negatively correlated expected returns
- B . positively correlated expected returns
- C . equally correlated expected returns
- D . no correlated expected returns
Using the dividend discount model, an analyst determines mat Beverly Company’s equity is worth $80 per share.
Beverly Company’s required rate of return is 15% and the current risk-free rate is 5% assuming a 0% long-term growth rate, what is Beverly’s estimated future annual dividend?
- A . $16.00
- B . $12.00
- C . $8.00
- D . $1.20
K Malone is a successful entrepreneur, Currently she is considering investing in a capital protect, which would benefit tourism in North Caroina Because of tourism, the State of North Carolina is willing to lent) her $150,000 at a rate of 5%. well below the market rate Her estimated net cash flows for the 3-year lifetime of the project are S15 000 $89,000 and $60,000 respectively Recommend whether or not Malone should undertake this project.
- A . She should undertake this project because the present value (PV) of this project is $146,843
- B . She should undertake this project because the net present value (NPV) is $31,022.
- C . She should not undertake this project because the net present value NPV is ($14.051).
- D . She should not undertake this protect because the net present value (NPV) is ($3.157)
Your organization is considering implementing an Enterprise Risk Management process. You expect to obtain many benefits from this process.
Which of the following is not an expected Benefit?
- A . Aligning risk appetite and strategy
- B . Eliminating risk response decisions
- C . Reducing operational surprises and losses
- D . Seizing opportunities.
CORRECT TEXT
Explain now QDD’s share repurchase plan would affect each of the following measures EPS, the degree of operating leverage, and the interest coverage ratio No calculations required
Essay
Quality Digital Design (QDD) Inc is a public-traded technology company Selected financial data of QDD for the prior year are as follows
QDD’s stock was trading at $160 per share at the beginning of the yea: and at $176 per share by the end of the year. The company paid dividends of S5 per share. The company "s stock had a beta of 1 4 The stock market provided a total return of 12% last year, well above the 3°o risk free rate of return
QDD is considering the issuance of $200 million of bonds to fund the repurchase of $200 million of its stock. QDD is evaluating the bond, including its term structure, maturity, and whether it should be callable obtaining the lowest coupon interest is an important objective of QDD. The CFO has estimated that sales for the current year would remain the same as last year and the new bond would add S12 million in annual interest payments
Management is responsible for identifying potential events mat could represent opportunities or threats.
Which one of the following is not a viable event identification technique?
- A . Facilitated workshops and interviews
- B . Loss event data methodologies
- C . Review of control categories
- D . Process flow analysis
Marlow Company s partial balance sheet indicated the following.
- A . 2.08
- B . 1.96
- C . 1.58
- D . 0.51