CMA Part 2

Suggested Additional Reading – from HOCK

Section # Section / Topic Miles Page Additional Reading Additional Reading -
Name No. – HOCK materials HOCK Page No.
Section A Financial Statements Analysis
A.3 (I) Earnings Per Share A-23 to A-27 Diluted Earnings Per Vol 1: Pg 53 - Pg 64
Share
A.4 (III) Effects of Changing A-40 Inflation & Financial Vol 1: Pg 91
Prices & Inflation Ratios
Section B Corporate Finance
B.1 (VI) Capital Asset Pricing B-19 to B-20 The Security Market Line Vol 1: Pg 112 - Pg 116
Model
B.2 (II) Bonds B-33 to B-43 The Term structure of Vol 1: Pg 132 - Pg 134
Interest Rates & Yield
Curve
B.2 (VI) Derivatives B-55 to B-60 Stock Rights, Warrants, Vol 1: Pg 147 - Pg 150
and ADRs
B.2 (VI) Derivatives B-55 to B-60 Hedging Strategies with Vol 1: Pg 181 - Pg 185
Puts & Calls
B.2 (VIII) Cost of Capital B-62 to B-70 The Theoretical (or Vol 1: Pg 150 - Pg 151
Intrinsic) Value of a share
of stock
B.2 (VI) Derivatives B-55 to B-60 Exiting an Option Position Vol 1: Pg 179
B.2 (VI) Derivatives B-55 to B-60 Extrinsic Value Vol 1: Pg 180
B.3 (III) Debt Financing B-75 to B-86 Lease Vs. Purchase Vol 1: Pg 186
Analysis
B.4 (III) Marketable Securities B-99 Baumol Cash Vol 1: Pg 204 - Pg 205
Management Management Model
B.4 (III) Marketable Securities B-99 Miller Orr Cash Vol 1: Pg 205 - Pg 206
Management Management Model
B.4 Working Capital B-96 Loans with Compensating Vol 1: Pg 216 - Pg 217
Management Balance
B.6 (II) Fixed, Flexible & B-116 to B-120 Measuring the amount of Vol 1: Pg 239
Floating currency Appreciation or
exchange rates Depreciation of currency
B.6 (II) Fixed, Flexible & B-116 to B-120 The Discount or Premium Vol 1: Pg 240 - Pg 242
Floating currency of currency in Foreign
exchange rates Market
B.6 (II) Fixed, Flexible & B-116 to B-120 Purchasing Power Parity Vol 1: Pg 244 - Pg 245
Floating currency Theorem
exchange rates
Section C Decision Analysis
C.1 (II) CVP Analysis (Break- C-6 to C-9 Effect of Changes on BEP Vol 2: Pg 24
Even Analysis) due to change in sales
mix
C.3 (I) Setting Prices C-29 to C-30 Illegal Pricing Vol 2: Pg 87
C.3 (I) Setting Prices C-29 to C-30 Qualitative Factors in Vol 2: Pg 88 - Pg 89
Decision Analysis
Section D Risk Management
D.1 (II) Enterprise Risk D-9 to D-20 Risk Based Event Vol 2: Pg 94 - Pg 95
Management Identification Techniques
D.1 Risk Management D-2 Risk Measurement in Vol 2: Pg 114 - Pg 116
Banks
Section E Investment Decisions
E.1 (II) Capital Budgeting E-7 to E-10 Incremental Analysis: Vol 2: Pg 152 - Pg 154
Process New Asset replacing an
Old Asset
E.4 Risk Analysis in E-24 Capital Budgeting & Vol 2: Pg 156 - Pg 160
Capital Investment Inflation
E.4 Risk Analysis in E-24 Real Options in Capital Vol 2: Pg 171 - Pg 174
Capital Investment Budgeting
Section F Professional Ethics
F.1 (I) Business Ethics F-4 to F-7 Effect of 'Groupthink' on Vol 2: Pg 196
Ethical Behaviour
F.2 (I) IMA Statement of F-19 Provisions of Values & Vol 2: Pg 198
Ethical Professional Ethics: From Inception to
Practice Practice lined out in SMA
F.3 (III) Measuring & F-25 Failure Mode and Effect Vol 2: Pg 203
Improving Ethical Analysis (FEMA)
Compliance Poka Yoke Assessment