Title Details

IMA®, the association of accountants and financial professionals in business, is one of the largest and most respected associations focused exclusively on advancing the management accounting profession. Globally, IMA supports the profession through research, the CMA® (Certified Management Accountant) program, continuing education, networking, and advocacy of the highest ethical business practices. IMA has a global network of more than 65,000 members in 120 countries and 200 local chapter communities. IMA provides localized services through its offices in Montvale, NJ, USA; Zurich, Switzerland; Dubai, UAE; and Beijing, China. For more information about IMA, please visit www.imanet.org.

Candidate Study Information xi

How to Use the CMA Learning System® xv

Create a Study Plan xix

Introduction 1

Section AFinancial Statement Analysis 3

Topic 1: Basic Financial Statement Analysis 27

Topic 2: Financial Performance Metrics—Financial Ratios 39

Topic 3: Profitability Analysis 61

Topic 4: Analytical Issues in Financial Accounting 85

Practice Questions: Financial Statement Analysis 105

Section B Corporate Finance 115

Topic 1: Risk and Return 145

Topic 2: Managing Financial Risk 165

Topic 3: Financial Instruments 171

Topic 4: Cost of Capital 211

Topic 5: Managing Current Assets 229

Topic 6: Raising Capital 265

Topic 7: Corporate Restructuring 285

Topic 8: International Finance 293

Practice Questions: Corporate Finance 313

Section C Decision Analysis and Risk Management 323

Topic 1: Cost/Volume/Profi t Analysis 339

Topic 2: Marginal Analysis 361

Topic 3: Pricing 377

Topic 4: Risk Assessment 407

Practice Questions: Decision Analysis and Risk Management 423

Section D Investment Decisions 435

Topic 1: Capital Budgeting Process 449

Topic 2: Discounted Cash Flow Analysis 465

Topic 3: Payback and Discounted Payback 479

Topic 4: Ranking Investment Projects 485

Topic 5: Risk Analysis in Capital Investment 493

Topic 6: Valuation 503

Practice Questions: Investment Decisions 531

Section E Professional Ethics 541

Topic 1: Ethical Considerations for the Organization 547

Practice Questions: Professional Ethics 561

Essay Exam Support Materials 563

Essay Exam Study Tips 566

Examples of Essay Question Answers 568

Practice Essay Questions and Answers 578

Answers to Section Practice Questions 659

Appendix A: Time Value of Money Tables 725

Appendix B: ICMA Learning Outcome Statements—Part 2 729

Bibliography 745

Index 749