IMA CMA Strategic Financial Management Practice Exams
Last updated on Oct 22,2026- Exam Code: CMA Strategic Financial Management
- Exam Name: CMA Part 2: Strategic Financial Management Exam
- Certification Provider: IMA
- Latest update: Oct 22,2026
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 $2 478.450 Payment is to be settled in a rare currency 40 days from today excluding transaction fees which investment instrument would be used to provide the best hedge?
- A . Stock options
- B . Market-traded futures
- C . Forward agreement
- D . Currency warrant
Given the financial information shown below, what amounts would be shown for sales revenue and for gross prom, respectively in a common size income statement?
- A . 100% and 20%
- B . 100% and 45%
- C . 222% and 225$
- D . 100% and 55%
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 . 8.2%
- C . 9.6%
- D . 10.5%
A furniture retail company uses the LIFO inventory method Due to the nigh inflation rate in me past year, the company’s
- A . current ratio may be overstated
- B . quick ratio may be understated
- C . net income may be understated
- D . quick ratio may be overstated
CORRECT TEXT
Assuming mere are no other imitations, should AMI accept the one-time order from a financial perspective? Explain your answer
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.
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.
IF a company does not have a code of conduct, the company most likely
- A . is missing important guidance on ethical decision making
- B . will lack an expressed statement of values regarding ethical behavior
- C . can use its statement of values instead to implement ethics in daily decision making
- D . must find another way to express its ethical principles
Employee performance review and development systems must be fully aligned with the requirements for ethical conduct Ethical expectations should be included in
- A . competencies, only
- B . job descriptions only
- C . competencies and job descriptions only
- D . compliances, job descriptions and objectives
A corporation’s board of directors has just declared its next regular quarterly cash dividend. The record date for this dividend will occur
- A . before the ex-dividend date and after the payment date
- B . before the ex-dividend date and before the payment date
- C . after the ex-dividend date and after the payment date
- D . before the payment date and after the ex-dividend date
An accounting manage’ is deciding which performance measurement tool would be most appropriate to compare firms within their company s industry given that the firms vary in size significantly.
Which one of the following analysis methods would be the most appropriate?
- A . Cash flow analysis
- B . Horizontal analysis
- C . Sensitivity analysis
- D . Vertical analysis
L&H Sports owns and operates several stadiums used for baseball and soccer games Management is considering installing machines that would be used to roast peanuts on the premises. This equipment would allow L&H to sell freshly roasted peanuts rather than the pre-roasted peanuts that are currently sold Marketing studies suggest that this feature would increase peanut sales.
The roasters can be purchased in several sizes, and the annual rental fees and operating costs vary with the size of the roaster Information about the roasters is shown below.
L&H currently sells pre-roasted peanuts for $0 60 pet bag. Management plans to sell the freshly roasted peanuts for a higher price but at no more than a 10% increase. The demand for freshly roasted peanuts is estimated to be 250, 000 bags pet year.
Which roaster should L&H purchase to maximize its profit?
- A . Economy
- B . Regular
- C . Super