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| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Business Decision Analysis | 25% | - Pricing Methodologies - Marginal Analysis - Cost-Volume-Profit Analysis |
| Topic 2: Professional Ethics | 15% | - IMA Statement of Ethical Professional Practice - Organizational Ethics - Ethical Considerations for Management Accountants |
| Topic 3: Enterprise Risk Management | 10% | - Types of Risk - Risk Mitigation Strategies - Risk Identification and Assessment - Managing Enterprise Risk |
| Topic 4: Corporate Finance | 20% | - Long-Term Financial Management - International Finance - Corporate Restructuring - Raising Capital - Financial Risk and Return - Working Capital Management |
| Topic 5: Financial Statement Analysis | 20% | - Profitability Analysis - Special Issues in Financial Statement Analysis - Financial Ratios - Comparative Financial Statement Analysis |
| Topic 6: Capital Investment Decisions | 10% | - Capital Budgeting Process - Net Present Value (NPV) - Discount Rates - Internal Rate of Return (IRR) - Incremental Cash Flow Analysis - Payback Analysis - Sensitivity Analysis |
1. 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) 1/30 net 45
B) 1/10, net 45
C) 1/30, net 90
D) 1/10, net 90
2. As the number of stocks in a portfolio increases, unsystematic risk
A) increases, and systematic risk increases
B) decreases and systematic risk decreases
C) increases, and systematic risk does not change
D) decreases and systematic risk does not change
3. Sunnyvale Gas Company had a $50 million issue of 30-year mortgage bonds issued at par 10 years ago The coupon rate on the bonds is 15% and Interest is payable semi-annually on March 1 and September 1. The bonds are currently trading at SI 300. The can provision of the issue states that the bonds are callable after the S-year deferral period at 108 plus accrued interest. If Sunnyvale calls the bonds effective June 1 what is the cash payment, ignoring taxes, to the bondholders?
A) $66,875,000
B) $55 875 000
C) $51875 000
D) $57 750 000
4. A manufacturing company is reviewing the budget for one of its component parts for next year based on the need for 5.000 units.
The company receives a bid from a supplier offering lo provide (lie needed component for a price of $115 per unit The company is deciding whether to make or buy the component What decision should the firm make if (1) the fixed facilities costs can be avoided or (2) if the fixed facilities costs cannot be avoided If purchasing from the supplier?
A) (1) Buy; (2) Buy
B) (1) Make; (2) Make
C) (1) Make; (2) Buy
D) (1) Buy; (2) Make
5. Which one of the following statements best describes an offering after an initial public offering where a benchmark stock price will already exist?
A) Subsequent or secondary public offering.
B) Private placement
C) Over-the-counter offering
D) Stock repurchase
Solutions:
| Question # 1 Answer: A | Question # 2 Answer: D | Question # 3 Answer: D | Question # 4 Answer: B | Question # 5 Answer: A |
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