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VCE
The maximum capital expansion that FLF Corporation can support in the coming year without resorting to external equity financing is
A. $2 million.
B. $3 million.
C. $5 million.
D. Cannot determine from the information given.
What is the duration of a 9%, 5-year Treasury bond that has a yield of 8%?
A. 3.27
B. 4.26
C. 0.69
D. 0.98
The profitability index (present value index)
A. Represents the ratio of the discounted net cash outflows to cash inflows.
B. Is the relationship between the net discounted cash inflows less the discounted cash outflows divided by the discounted cash outflows.
C. Is calculated by dividing the discounted profits by the cash outflows.
D. Is the ratio of the discounted net cash inflows to discounted cash outflows.