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
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
Genco Healthcare has asked ns controller to summarize the company’s financial performance for the past two years. The accountant provided the following two years financial ratios for reference.
- A . Less liquid mote profitable more solvent
- B . Less liquid mote profitable less solvent
- C . More Liquid Less profitable less solvent
- D . More liquid, less profitable mote solvent
CORRECT TEXT
Explain one reason each Tot and against issuing bonds with a call feature
Essay
Quality Digital Design (QDD) Inc is a public-traded technology company Selected financial data of QDD for the prior year are as follows
QDD’s stock was trading at $160 per share at the beginning of the yea: and at $176 per share by the end of the year. The company paid dividends of S5 per share. The company "s stock had a beta of 1 4 The stock market provided a total return of 12% last year, well above the 3°o risk free rate of return QDD is considering the issuance of $200 million of bonds to fund the repurchase of $200 million of its stock. QDD is evaluating the bond, including its term structure, maturity, and whether it should be callable obtaining the lowest coupon interest is an important objective of QDD. The CFO has estimated that sales for the current year would remain the same as last year and the new bond would add S12 million in annual interest payments
Which one of the following moral philosophies states that the morality of an action is inherent and not based on the consequences of the action?
- A . Utilitarianism
- B . Deontology
- C . Teleology
- D . Relativism
A company produces 10,000 units of Product A monthly at the costs shown below.
The company estimates that 30% of the fixed overhead costs allocated to Product A are avoidable if the company chooses to outsource the production If the company purchases Product A from an outside supplier for $18 per unit what would be the net effect on its operating income?
- A . $23,000
- B . $5,00C
- C . ($5,000)
- D . ($17,000)
The Transformer Division of Keller Electrical Supply IS developing its Budget for next year Preliminary estimates for the next year are as follows.
• Sales of 10.000 units
• Variable cost of $350 per unit
• Fixed costs of $800,000
. Net assets utilized on the Transformer Division are $7 million
• Target rate of return on investment required by Keller is 15%
If the Transformer Division utilizes cost-based pricing and uses a markup based on its target rate of return, what price per unit (rounded to the nearest dollar) should it use for the budget?
- A . $430
- B . $495
- C . $506
- D . $535
if a company increases the price of its product from $3010 $35, demand would decrease from 30, 000 units to 20.000 units.
What is the price elasticity of demand for the company using the midpoint formula?
- A . 0.4
- B . 0.5
- C . 2.0
- D . 2.7
Which one of the following statements with respect to ethics is correct?
- A . Every organization that follows the law is ethical
- B . Good ethics stems from formal education
- C . Ethics and laws are not closely related
- D . One may act legally and still be acting unethically
A management accountant overheard the company’s procurement manager discussing a kickback payment for one of the company s recent projects. The procurement manager promised to pay a share to the other person II the arrangement was kept confidential According to the IMA Statement of Ethical Professional Practice which one of the following is the most appropriate action for the management accountant to take?
- A . Take no action since the incident is not related to the accounting department
- B . Report the information directly to a nigh-level company executive since it is a serious matter
- C . Call the company’s ethics helpline and report the matter anonymously
- D . Discuss the incident with his or her own attorney and consider disassociating from the company
Company Y records a receivable from a foreign customer in Company Y’s functional currency. The receivable is due in 90 days and is to be paid in the customer s currency.
This is an example of which type of risk exposure?
- A . Economic risk
- B . Transaction risk
- C . Foreign investment risk
- D . Translation risk