Exam Code: CMA-Strategic-Financial-Management
Exam Questions: 126
CMA Part 2 Strategic Financial Management
Updated: 21 May, 2026
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Practicing : 1 - 5 of 126 Questions
Question 1

Southwest Supplies Inc. (SSI) is considering the following two projects with cash-flows discounted at SSI's weighted average cost of capital.

CMA-Strategic-Financial-Management-page49-image10SSI can only afford to invest in one of the projects. Which statement would most likely explain why SSI would choose Project B over project A? 

Options :
Answer: D

Question 2

Below is the income statement and balance sheet for a retail corporation.

CMA-Strategic-Financial-Management-page49-image5
What is the corporation’s return on equity in Year 2? 

Options :
Answer: D

Question 3

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.

CMA-Strategic-Financial-Management-page49-image21
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?

Options :
Answer: B

Question 4

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? 

Options :
Answer: C

Question 5

Which one or the following costs Is a variable product cost? 

Options :
Answer: C

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