CMA-Strategic-Financial-Management IMA Exam Questions and Free Practice Test

Question 19

- (Topic 1)
Which one of the following situations describes a secondary offering of stock by a company?

A. The company has an initial public offering of its stock and its investment bank needs to add mote shares to the initial public offering to meet excess demand by investors

B. After the lockup period of the initial public offering ends, the company 3 founders sell some of their shares to the public

C. The company repurchases shares of its stock in the open market, but it then later sells these shares in the open market

D. After completing its initial public offering, the company sells more new shares of its stock

Correct Answer:B

Question 20

- (Topic 1)
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. India

B. U.S

C. Neither India or U.S

D. Both India and U.S

Correct Answer:B

Question 21

- (Topic 1)
Which one of the following statements regarding portfolio diversification is not correct?

A. A well diversified portfolio can eliminate systematic risk.

B. A well diversified portfolio can minimize unsystematic risk

C. A well diversified portfolio should include individual stock investments having a balance of positive and negative betas.

D. The standard deviation of a well diversified portfolio's percentage returns should be approximately equal to the standard deviation of the entire stock market's percentage returns.

Correct Answer:A

Question 22

- (Topic 1)
An accountant for a company has not used readily available professional development opportunities to stay aware of changes in tax laws and applied previous tax rules to the most recent tax return, resulting in an overpayment of income tax Using IMA's Statement of Ethical Professional Practice, how would the accountant's behavior best be described?

A. The accountant has complied with the competence standard if the lack of professional development is disclosed to supervisors

B. The accountant has complied with the competence standard if the lack of professional development is disclosed in any reports or analyses the accountant produces

C. The accountant has not complied with the credibility standard but has complied with thecompetence standard

D. The accountant has not complied with the competence standard

Correct Answer:D

Question 23

- (Topic 1)
Below is the income statement and balance sheet for a retail corporation.
CMA-Strategic-Financial-Management dumps exhibit
What is the corporation??s return on equity in Year 2?

A. 23%

B. 26%

C. 39%

D. 48%

Correct Answer:D

Question 24

- (Topic 1)
Alliantz Company, a USA-based manufacturer needs to set up a hedge to protect against dollar exchange rate devaluation. The protection is necessary (or an open balance of $2478.450 Payment is to be settled in a rare currency 40 days from today excluding transaction fees which investment instrument would be used to provide the best hedge?

A. Stock options

B. Market-traded futures

C. Forward agreement

D. Currency warrant

Correct Answer:C

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