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: 152)

Page 151 of 336
PDF with 1336 Questions
View Related Case Study

A $1,000 par value convertible bond is selling at $1,200. If the conversion ratio is 20, what is the conversion price?

  1. $3846
  2. $41.60
  3. $50.00
  4. $60.00

Answer(s): C

Explanation:

The conversion price is calculated by duding the par value of the bond by the conversion ratio. Thus, the conversion price is $50 ($1,000 20).



View Related Case Study

If the interest rate is to be determined in a given transaction in which the present value and future value are known, which formula would be used?

  1. Option
  2. Option
  3. Option
  4. Option

Answer(s): A

Explanation:

The basic formula. PV x (1 + j)fl FVn. can be used to solve any time value of money problem that involves a single future cash flow (FVn). To determine the interest rate, the formula is transformed to the relationship (1 + j)fl FV1PV by dividing each side of the basic formula by PV). Since the TVMF is equal to (1 + one can then look in the future value of $1 table for n periods to find that interest rate for which the table's TVMF is equal to the TVMF calculated from the formula



View Related Case Study

If the amount to deposit today to be able to replace an asset at a specified time in the future is to be determined, which formula should be used?

  1. Option
  2. Option
  3. Option
  4. Option

Answer(s): C

Explanation:

The basic formula is .This formula can be used to solve any time value of money problem incoming a single future cash flow (FVn). In this problem, the future amount needed after n time periods and the interest rate are known, The unknown is the value of an amount to be deposited today, i.e., the present value (PV). The formula PV = FV/(1 + j)fl is a transformed version of the basic TVMF formula. The future value of $1 table can be used to find the TVMF equal to (1 + or the present value of $1 table can be used to find the TVMF equal to 11(1 + 1) fl.



View Related Case Study

Future value is best described as

  1. The sum of dollars-in discounted to time zero.
  2. The sum of dollars-out discounted to time zero.
  3. The value of a dollar-in at a future time adjusted for any compounding effect
  4. The value of a dollar-in at a future time adjusted for any compounding effect and the value of a dollar-out at a future time adjusted for any compounding effect.

Answer(s): D

Explanation:

The future value of a dollar is its value at a time in the future given its present value. The future value of a dollar is affected both by the discount rate and the time at which the dollar is received. Hence, both dollars-En and dollars-out in the future maybe adjusted for the discount rate and any compounding that may occur.






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

CMA Exam Discussions & Posts