Free CMA-Strategic-Financial-Management Exam Dumps

Question 6

- (Topic 1)
A company had an operating cycle of 110 days, a cash cycle of 40 days, and an accounts receivable period of so days. The company s inventory period and accounts payable period are

A. inventory period = 50 days ana accounts payable period - 150 flays
B. inventory period = 70 flays and accounts payable period = 50 flays
C. inventory period = 10 days and accounts payable period = 50 days
D. inventory period = 50 days and accounts payable period = 70 days

Correct Answer:D

Question 7

- (Topic 1)
A capital budgeting analysis involves an initial investment of $500. The expected cash inflow in Year 1 is $300, and the expected cash inflow in Year 2 is $350. Which one of the following equations can get the correct internal rate of return (IRR) of this project?

A. $500 = $300/(1 + IRR) + $350/(1 + IRR)
B. $500 = $300/(1 + IRR) + $350/(1 + IRR)2
C. -$500 = $300'(1 + IRR) + 5350/(1 + IRR)2
D. $0 = $300/(1 + IRR) + $350/11 + IRR)2

Correct Answer:C

Question 8

- (Topic 1)
Company A is concerned with its debt status and interested in analyzing how each one of the following activities might affect its to equity ratio. Assuming each activity is independent, which one of following activities is

A. Purchase back some of its common stock during the year.
B. Acquiring a subsidiary and consolidating for year-end financial statements.
C. Changing its inventory method from LIFO to weighted average.
D. Creating a separate entity to purchase a needed machine and leasing it from this entity.

Correct Answer:B

Question 9

CORRECT TEXT - (Topic 2)
Calculate AMI??s degree of operating leverage. Show your calculations. Essay
Apex Manufacturing lnc. (AMI) is a Canada-based company that manufactures a manufactures and unique part for aircrafts. It has few competitors in the market. The company is exposed to exchange rate risk because about 90% of its products are exported to the U.S, and most of its sales contracts are in U.S. dollars. AMI has the capacity to manufacture 1,500 units of the part per year. For the year just ended. AMI manufactured and sold 1,000 units. The operating results are shown below.
CMA-Strategic-Financial-Management dumps exhibit
Recently, A new customer made a one-area order of 500 units of the part at $1.200 per unit. The CTO asked the controller to analyze this offer. AMI is considering adjusting its sales price next year in a recent meeting, the CFO suggested to use the market-based approach for pricing decisions, bat the controller insisted that the cost-based approach is more favorable to the company.
Solution:
$1m/$0.5, 2 times
contribution/operating income
They can simply revalue their assets and hence ask for a higher price for their company or they re structure their financing structure by either issuing fleets or reducing me equity by paying a special one off dividend.

Does this meet the goal?

A. Yes
B. No

Correct Answer:A

Question 10

- (Topic 1)
A corporation shows the following on its financial statements (in millions).
CMA-Strategic-Financial-Management dumps exhibit
The corporation has a financial leverage ratio of

A. 0.06
B. 0.50
C. 2.00
D. 3.60

Correct Answer:B