November 2009: CMA Part 3 Textbook Update

[Kevin Hock]

The CMA Part 3 textbook has been revised, and the new document is now available for download in My Studies. Printed textbooks shipped on or after Wednesday, November 4th, 2009 include the new version.

The major, substantive changes and their page numbers are as follows:

• The definition of competitive advantage has been expanded, beginning in the second paragraph; and a new third paragraph is added, page 6.
• An explanation of the Boston Consulting Group Growth-Share Matrix has been added, pages 90-91.
• The discussion of lockbox and concentration banking services has been revised, pages 135-136.
• The example of cost of not taking the discount has been corrected, page 138.
• The topic of Treasury Bills has been revised, page 142.
• “Inventory Management Ratios” (Inventory Turnover Ratio and Days Sales in Inventory) added at the end of the Inventory Management topic in Section C, page 153.
• Loans with Compensating Balances was rewritten, page 155.
• “The Bond Itself” – some changes in terminology were made, and a paragraph was added about bond interest generally being paid semi-annually, page 166.
• Information has been added to the topic “Value of Common Stock” to show the derivation of the formula from the dividend growth model formula, pages 215-216.
• The answer to Question 78 has been revised, page 374.

In addition to the listed changes, many small improvements and technical corrections that are too numerous to list were made throughout the volume. The changes we are not listing are not changes that will cause you to fail an exam if you do not note them; but they are changes that could cause you to question something if you do not have the updated information. If you have a book that was printed earlier and you have a question about something in it, please check the online version to see if it has been changed.