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IMA CMA-Strategic-Financial-Management Exam Overview:
| Certification Vendor: | Institute of Management Accountants (IMA) |
|---|---|
| Exam Name: | CMA Part 2: Strategic Financial Management |
| Exam Number: | CMA-Strategic-Financial-Management |
| Related Certifications: | CMA Part 1: Financial Planning, Performance, and Analytics |
| Exam Duration: | 240 minutes |
| Passing Score: | 360 (scaled, range 0-500) |
| Exam Price: | $495 - $545 USD (varies by IMA membership type) |
| Available Languages: | English, Simplified Chinese |
| Real Exam Qty: | 102 (100 MCQs + 2 essay scenarios) |
| Exam Format: | Essay / Constructed Response, Multiple Choice Questions (MCQs) |
| Certificate Validity Period: | 3 years from program enrollment to pass both parts; certification valid with continuing education |
| Recommended Training: | IMA Official Learning System CMA Candidate Handbook |
| Exam Registration: | Prometric Scheduling IMA Official Registration |
| Sample Questions: | IMA CMA-Strategic-Financial-Management Sample Questions |
| Exam Way: | Computer-based testing (CBT) at Prometric test centers or remote proctored online |
| Pre Condition: | IMA membership + CMA program enrollment; no prior exam required; education and work experience required to obtain certification |
| Official Syllabus URL: | https://www.imanet.org/ima-certifications/cma-certification |
IMA CMA-Strategic-Financial-Management Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| Enterprise Risk Management | 10% | - Risk identification and classification
|
| Corporate Finance | 20% | - Risk and return
|
| Professional Ethics | 15% | - IMA Statement of Ethical Professional Practice
|
| Business Decision Analysis | 25% | - Cost-volume-profit analysis
|
| Financial Statement Analysis | 20% | - Basic financial statement analysis
|
| Capital Investment Decisions | 10% | - Capital budgeting process
|
IMA CMA Part 2: Strategic Financial Management Sample Questions:
Delman inc considering upgrading its manufacturing facility, and it is expected that the new equipment will cost $180,000. The project's is considering similar to the risk of the firm's other investments. the after-tax cash inflows attribute to this project are expected to increase by $50,000 every year over the next five years. The firm's marginal tax rate is 30%, its debt-to-equal ratio (using market values) is 60%, and its pre-tax cost of debt and equity are 8% and 12% respectively. the weighted average cost of capital appropriate for evaluating this project is closest to
- A. 8.0%
- B. 10.5%
- C. 9.6%
- D. 8.2%
Correct Answer: C 🗳️
Define the term structure of interest rates and explain now it could impact QDD's objective of obtaining the lowest coupon rate 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% 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
Correct Answer:
See the explanation for the answer.
Explanation
* A callable bond allows companies to pay off their debt early and benefit from favorable interest rate drops
* A capable bono benefits the issuer and so investors of these bonds ate compensated vutn a more attractive interest rate than on otherwise similar non-callable bonds However callable bones are more expensive The term structure of interest rates reflects the expectations of market participants about future changes in interest rates and their assessment of monetary policy conditions in general terms yields increase in line with maturity, giving rise to an upard-sloping or normal yield curve
On January 1, 2008 the exchange rate between the U S dollar (S) and Indian Rupee (Rs) was $t = Rs 39. 2676.
On January 1, 2009 the rate was Rs 1 = $0,0205. Based only on the relative currency appreciation or depreciation, which country's exports would likely have increased?
- A. Both India and U.S
- B. Neither India or U.S
- C. India
- D. U.S
Correct Answer: D 🗳️
A company can by identical raw materials from four suppliers. Each supplier offers a different term of sale.
Which one of the following terms of sale has the highest effective annual interest rate if the company does not take the cash discount?
- A. 1/10, net 90
- B. 1/10, net 45
- C. 1/30 net 45
- D. 1/30, net 90
Correct Answer: C 🗳️
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% 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
Correct Answer:
See the explanation for the answer.
Explanation
The share repurchase program will reduce the weighted average number of shares outstanding which is turn will increase the earning per share as the same income will be divided over a fewer number of shares It has no impact on the operating leverage and me .Merest cover ratio as it has nothing to do with cost and interest expense (therefore profitability) its an equity based transaction only
By Jessica
