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 A

Financial Statement Analysis 3

Topic 1: Basic Financial Statement Analysis 5

Topic 2: Financial Performance Metrics—Financial Ratios 17

Topic 3: Profi tability Analysis 37

Topic 4: Analytical Issues in Financial Accounting 61

Practice Questions: Financial Statement Analysis 81

Section B

Corporate Finance 91

Topic 1: Risk and Return 93

Topic 2: Managing Financial Risk 113

Topic 3: Financial Instruments 121

Topic 4: Cost of Capital 161

Topic 5: Managing Current Assets 179

Topic 6: Raising Capital 215

Topic 7: Corporate Restructuring 235

Topic 8: International Finance 243

Practice Questions: Corporate Finance 263

Section C

Decision Analysis and Risk Management 273

Topic 1: Cost/Volume/Profi t Analysis 275

Topic 2: Marginal Analysis 297

Topic 3: Pricing 313

Topic 4: Risk Assessment 343

Practice Questions: Decision Analysis and Risk Management 359

Section D

Investment Decisions 371

Topic 1: Capital Budgeting Process 373

Topic 2: Discounted Cash Flow Analysis 389

Topic 3: Payback and Discounted Payback 403

Topic 4: Ranking Investment Projects 409

Topic 5: Risk Analysis in Capital Investment 417

Topic 6: Valuation 427

Practice Questions: Investment Decisions 455

Section E

Professional Ethics 465

Topic 1: Ethical Considerations for the Organization 467

Practice Questions: Professional Ethics 481

Essay Exam Support Materials 483

Essay Exam Study Tips 486

Examples of Essay Question Answers 488

Practice Essay Questions and Answers 498

Answers to Section Practice Questions 557

Appendix A: Time Value of Money Tables 623

Appendix B: ICMA Learning Outcome Statements–Part 2 629

Bibliography 645

Registration for the Wiley CMA Learning

System Exam Review 649

Index 653