CMA PART 2

STRATEGIC FINANCIAL MANAGEMENT

SECTION A
FINANCIAL STATEMENT ANALYSIS
 TOPIC 1: BASIC FINANCIAL STATEMENT ANALYSIS
A. Common-Size Financial Statement Analysis (Vertical Analysis)
B. Horizontal Financial Statement Analysis
 TOPIC 2: FINANCIAL RATIOS
A. Liquidity Ratios
B. Solvency Ratios
C. Operating Leverage & Financial Leverage
D. Efficiency Ratios
 TOPIC 3: PROFITABILITY ANALYSIS
A. Profitability – Use of Assets
B. Profitability – Vertical Analysis Revisited & Return Ratios
C. Profitability – Market Value Ratios
D. Profitability – EPS, Yields, & Shareholder Returns
E. Limitations of Ratio Analysis
F. Sources of Financial Information & their Use in Evaluating a Company’s
Financial Strength
G. ROA & ROE – A Closer Look
H. Revenues & Its Relationship to Current Assets
I. Cost of Sales & the Different Profit Margins
J. Considerations when Measuring Income
 TOPIC 4: SPECIAL ISSUES
A. Sales & Revenues – Important Considerations
B. Foreign Exchange Fluctuations
C. Inflation & the Financial Ratios
D. Changes in Accounting Treatment
E. Book vs Market Value & Accounting vs Economic Profit
F. Quality Earnings
CMA PART 2
STRATEGIC FINANCIAL MANAGEMENT

SECTION B
CORPORATE FINANCE
 TOPIC 1: RISK AND RETURN
A. Calculating Return
B. Types of Risk
C. Capital Asset Pricing Model
 TOPIC 2: LONG-TERM FINANCIAL MANAGEMENT
A. Term Structures of Interest Rates
Types of Financial Instruments:
B. Bonds
C. Stock
D. Other Financial Instruments
E. Taxes & Capital Structure
F. Cost of Capital
Valuation of Financial Instruments:
G. Valuing Debt & Equity
H. Valuing Options
 TOPIC 3: RAISING CAPITAL
A. Financial Markets & Regulation
B. Market Efficiency
C. Financial Institutions
D. Initial & Secondary Public Offerings
E. Dividend Policy & Share Repurchases
 TOPIC 4: WORKING CAPITAL MANAGEMENT
A. Working Capital Terminology
B. Cash Management
C. Marketable Securities Management
D. Accounts Receivable Management
E. Inventory Management
F. Types of Short-Term Credit
G. Short-Term Credit Management
 TOPIC 5: CORPORATE RESTRUCTURING
A. Mergers & Acquisitions
Other Forms of Restructuring:
B. Restructuring & Combining
C. Evaluating Business Combinations
a)
 TOPIC 6: INTERNATIONAL FINANCE
A. Fixed, Flexible, & Floating Exchange Rates
B. Managing Transaction Exposure
C. Financing International Trade
CMA PART 2
STRATEGIC FINANCIAL MANAGEMENT

SECTION C
DECISION ANALYSIS
 TOPIC 1: CVP ANALYSIS
A. Cost Behavior
B. Contribution Margin
C. Targeted Profit and Taxes
D. Multiple Products C-V-P
E. Risk and Uncertainty
 TOPIC 2: MARGINAL ANALYSIS
A. Defining Relevant Costs
B. Sunk Costs, Opportunity Costs, & Capacity
C. Marginal Analysis & Product Line Decisions
D. Practice Problems
E. Comprehensive Problems with Opportunity Costs
 TOPIC 3: PRICING
A. Pricing Methods
B. Cost-Based Pricing
C. Competition-Based Pricing
D. Customer-Based Pricing
E. Pricing Strategy & the Product Life Cycle
CMA PART 2
STRATEGIC FINANCIAL MANAGEMENT

SECTION D
RISK MANAGEMENT
 TOPIC 1: ENTERPRISE RISK
A. Types of Enterprise Risk
B. Risk Identification & Assessment: Enterprise Risk Management
C. Risk Identification & Assessment: Risk Assessment Tools
D. Use of Probabilities
E. Risk Mitigation Strategies
F. Managing Risk
CMA PART 2
STRATEGIC FINANCIAL MANAGEMENT

SECTION E
INVESTMENT DECISIONS
 TOPIC 1: CAPITAL BUDGETING PROCESS
A. Introducing the Capital Budgeting Process
B. Cash Flows & Profits in the Capital Budgeting Process
TOPIC 2: CAPITAL INVESTMENT ANALYSIS METHODS
A. NPV & IRR Computations
B. Comparing NPV & IRR Methods with Uneven Cash Flows
C. The Payback Method
D. Risk Analysis & Qualitative Issues in Capital Budgeting
CMA PART 2
STRATEGIC FINANCIAL MANAGEMENT

SECTION F
PROFESSIONAL ETHICS
 TOPIC 1: BUSINESS ETHICS
A.Moral Philosophies & Ethical Decision Making
TOPIC 2: ETHICAL CONSIDERATIONS FOR MANAGEMENT
ACCOUNTING & FINANCIAL MANAGEMENT
PROFESSIONALS
A.Principles & Standards of Professional Ethics
B.Controlling Fraud & Resolving Ethical Issues
 TOPIC 3: ETHICAL CONSIDERATION FOR THE
ORGANIZATION
A. Ethics in an International Environment
B. Ethics & the Organization
C. Ethics & HR Management