CMA Part #2 Practice MCQ -Investment & Corp Finance Sections
Description
Test questions on the following Topics
B. Corporate Finance (20% - Levels A, B, and C)
1. Risk and return a. Calculating return b. Types of risk c. Relationship between risk and return
2. Long-term financial management a. Term structure of interest rates b. Types of financial instruments c. Cost of capital d. Valuation of financial instruments
3. Raising capital a. Financial markets and regulation b. Market efficiency c. Financial institutions d. Initial and secondary public offerings e. Dividend policy and share repurchases f. Lease financing
4. Working capital management a. Working capital terminology b. Cash management c. Marketable securities management d. Accounts receivable management e. Inventory management f. Types of short-term credit g. Short-term credit management
5. Corporate restructuring a. Mergers and acquisitions b. Bankruptcy c. Other forms of restructuring
6. International finance a. Fixed, flexible, and floating exchange rates b. Managing transaction exposure c. Financing international trade d. Tax implications of transfer pricing
E. Investment Decisions (15% - Levels A, B, and C)
1. Capital budgeting process
a. Stages of capital budgeting
b. Incremental cash flows
c. Income tax considerations
2. Discounted cash flow analysis
a. Net present value
b. Internal rate of return
c. Comparison of NPV and IRR
3. Payback and discounted payback
a. Uses of payback method
b. Limitations of payback method
c. Discounted payback
4. Risk analysis in capital investment
a. Sensitivity and scenario analysis
Who this course is for:
- CMA Candidates preparing for Exam #2
Instructor
I am a Professor of Accounting with over thirty-five years experience teaching accounting to college students, undergraduate and MBA university students as well as CMA candidates seeking to earn their Professional Certified Management Accountant Designation.
I achieved my Certified Management Accountant Designation 40 years ago. With that I then earned my Masters of Business Administration degree and later a PHD in accounting.
I have developed and will continue to develop a number of courses in both Financial Accounting and Management Accounting for you - a college or university student (or even a secondary student) to help you to achieve the best result in your undergraduate accounting course. If you get an "A" from me I guarantee you will get an "A" from your accounting prof.
For Graduate students, I have a course to prepare those of you who do not have a business degree for the Masters of Business Administration. Also I have a course at the masters level called Managerial Accounting.
For CMA Candidates, I have courses to prepare you to successfully pass their Certified Management Accounting Exams offered by Institute of Management Accountants.
Dr. John