Free CMA Exam Braindumps (page: 153)

Page 153 of 336
View Related Case Study

What is the pence of a 10-year, 10% coupon bond with a $1 .000 face value if investors require a 12% return? Assume annual coupon payments.

  1. $565.00
  2. $322.00
  3. $604.50
  4. $887.00

Answer(s): B

Explanation:

The pence of the bond is equal to the sum of present value of the face value of the bond and the present value of the interest payments. Thus, the price is $887.00 [($1 .000 x .322 PV factor) + ($100 x 5.65 PV factor)].



View Related Case Study

What is the duration of a 9%, 5-year Treasury bond that has a yield of 8%?

  1. 3.27
  2. 4.26
  3. 0.69
  4. 0.98

Answer(s): B

Explanation:

To calculate the duration of a bond, the present value of the cash flows associated with the bond, and the proportion of die total value of the bond that is realized in each period that the bond is held must be determined. The duration is then the product of the proportion of the value and the time (until that proportion of the value is recognized). Thus, the duration is 4.26. calculated as follows:



View Related Case Study

If a firm uses external financing as a plug item, has a new capital budget of $1 million, a net income of $750,000, and a plowback ratio of 40%. how much should be raised in external funds?

  1. $300,000
  2. $450,000
  3. $550,000
  4. $700,000

Answer(s): D

Explanation:

Mumping the 40% plowback ratio times the $750,000 of income produces $300,000 of funds for arrestment. Subtracting the $300,000 from the $1 million needed results in $700,000 to be obtained from external sources.



View Related Case Study

What happens to the NPV of a 1-year project if fixed costs are increased from $200 to $300, the firm is profitable, has a 35% tax rate and employs a 12% cost of capital?

  1. NPV decreases by $100.
  2. NPV decreases by $89.29.
  3. NPV decreases by $65.
  4. NPV decreases by $58 .05%

Answer(s): D

Explanation:

The $100 increase in costs is tax deductible. Therefore, the after-tax effect is only $65. Discounting the $65 decline at 12% (PV factor = .893) results in a decline in NPV of $58.05.



Page 153 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