CompTIA
Checkpoint
ISC
HP
Dell
EC-Council
EXIN
Fortinet
ITIL®
Juniper
PMI
Microsoft
VMware
Avaya
Google
Salesforce
Amazon
Palo Alto Networks
Certiport
ISC2
All Vendors
  2. Home
  3. Exams
  4. Financial
  5. CMA

Free CMA Exam Braindumps (page: 140)

Page 140 of 336
PDF with 1336 Questions
View Related Case Study

The par value of a common stock represents

  1. The estimated market value of the stock when it was issued.
  2. The liability ceiling of a shareholder when a company undergoes bankruptcy proceedings.
  3. The total value of the stock that must be entered in the issuing corporation's records.
  4. A theoretical value of $100 per share of stock with any differences entered in the issuing corporation's records as discount or premium on common stock

Answer(s): B

Explanation:

Par value represents a stock's legal capital. It is an arbitrary value assigned to stock before it is issued. Par value represents a shareholder's liability ceiling because, as long as the par value has been paid in to the corporation, the shareholders obtain the benefits of limited liability.



View Related Case Study

Each share of nonparticipating, 8%, cumulative preferred stock in a company that meets its dividend obligations has all of the following characteristics except

  1. Voting rights in corporate elections.
  2. Dividend payments that are not tax deductible by the company.
  3. No principal repayments
  4. A superior claim to common stock equity in the case of liquidation.

Answer(s): A

Explanation:

Dividends on cumulative preferred stock accrue until declared; that is, the book value of the preferred stock increases by the amount of any undeclared dividends. Participating preferred stock participates with common shareholders in excess earnings of the company. In other words, 8% participating preferred stock might pay a dividend each year greater than 8% when the corporation is extremely profitable. Therefore, nonparticipating preferred stock will receive no more than is stated on the face of the stock. Preferred shareholders rarely have voting rights. Voting rights are exchanged for preferences regarding dividends and liquidation of assets.



View Related Case Study

If a $1,000 bond sells for $1,125, which of the following statements are true?

I). The market rate of interest is greater than the coupon rate on the bond.
II). The coupon rate on the bond is greater than the market rate of interest.
III). The coupon rate and the market rate are equal IV). The bond sells at a premium.
IV). The bond sells at a discount.

  1. I and IV
  2. I and V
  3. II and lV
  4. II and V

Answer(s): C

Explanation:

The excess of the price over the face value is a premium. A premium is paid because the coupon rate on the bond is greater than the market rate of interest. In other words, because the bond is paying a higher rate than other similar bonds, its price is bid up by investors.



View Related Case Study

Debentures are

  1. Income bonds that require interest payments only when earnings permit.
  2. Subordinated debt and rank behind convertible bonds.
  3. Bonds secured by the full faith and credit of the issuing firm
  4. A form of lease financing similar to equipment trust certificates

Answer(s): C

Explanation:

Debentures are unsecured bonds. Although no assets are mortgaged as security for the bonds, debentures are secured by the full faith and credit of the issuing firm. Debentures are a general obligation of the borrower. Only, companies with the best credit ratings can issue debentures because only the company's credit rating and reputation secure the bonds.



Page 140 of 336



Post your Comments and Discuss Financial CMA exam with other Community members:

nancy commented on March 16, 2024
Good to learn from here
INDIA
upvote

Tacy commented on October 18, 2023
Awesome content
Anonymous
upvote

Georgodino commented on April 29, 2021
The study package is helpful in passing your exam since the practice questions are copied from real exam. But in order to learn the modules in details you need books.
ARGENTINA
upvote

Joe commented on May 16, 2019
Just Bought it, will share result with you.
Anonymous
upvote

emad hamdy commented on May 03, 2019
great for passing not so good for learning. Just use it as cheat sheet.
UNITED STATES
upvote

Amer Alnajjar commented on March 11, 2019
Still the test is under process
Anonymous
upvote

Exam Passer commented on December 06, 2018
I wrote the exam yesterday and it was a great success. Good job guys.
UNITED ARAB EMIRATES
upvote

Muhannad commented on October 09, 2018
Easy way to download
Anonymous
upvote

Harshavardhan Yedla commented on October 02, 2017
good
UNITED STATES
upvote

James commented on February 23, 2017
Ok just downloaded this exam....looks pretty damn good to me..I think this will help me pass easily.
UNITED STATES
upvote

RYAN commented on December 24, 2016
I JUST BOUGHT THIS AND I WILL BE SURE IT IS HELPFUL!! I'LL LET YOU KNOW AFTER TAKING EXAM.
UNITED STATES
upvote

KT commented on December 17, 2016
I just bought the test bank. I will provide a feedback once I start going through it and studying.
UNITED STATES
upvote

Sachin commented on May 16, 2016
Seems to be a great Stuff. Needs to prepare for the exam and hope it will be very useful.
UNITED ARAB EMIRATES
upvote

Sairam Beeman commented on January 05, 2016
very bad. pdf e-book not downloading. Latest updated questions not available. Waste of money. Don't buy this product.
UNITED STATES
upvote

Mik commented on October 08, 2015
I have difficulties downloading the CMA material! I hope that the product is right. Could anyone help me in downloading this please?
JORDAN
upvote