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CMA-Strategic-Financial-Management – CMA Part 2: Strategic Financial Management Exam

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Showing 4–6 of 10 questions

Question 4 (Section 1)

Delman inc considering upgrading its manufacturing facility, and it is expected that the new equipment will cost $180,000. The project's is considering similar to the risk of the firm's other investments. the after-tax cash inflows attribute to this project are expected to increase by $50,000 every year over the next five years. The firm's marginal tax rate is 30%, its debt-to-equal ratio (using market values) is 60%, and its pre-tax cost of debt and equity are 8% and 12% respectively. the weighted average cost of capital appropriate for evaluating this project is closest to

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    8.0%
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    8.2%
  • ○

    9.6%
  • ○

    10.5%
Question 5 (Section 1)

A company manufactures two products Product X and Product Y, during a joint process Product Y canoe processed further to create Product Z Relevant data are shown below.

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    Product Y should be processed further because me selling once of Product Z Is higher than Product Y
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    Product Y should he processed further because an additional S5.000 profit can be achieved by processing further
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    Product y should not be processed further because an additional S35 000 loss can be achieved by processing further
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    Product Y should be processed further because an additional $45,000 prof* can be achieved by processing further
Question 6 (Section 1)

Javier makes hand-looted learner dog collars. The materials cost $10 per collar and the collars are sold for $50 each. Javier sells me collars at a local farmer's market mat charges S100 per month for space rental if Javier's income tax rate is 30%, how many collars must Javier sell each year to earn $1,000 net income?

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    29
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    53
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    66
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    263