The 2015 CMA Part 2 textbook has been revised, and the new document is now available for download in My Studies. The changes are minor, mostly correcting small issues discovered since the first publication in July. If you are currently studying Part 2, it is not necessary to re-study any Sections that you have already studied or to re-print your textbook. The full list of significant changes is shown below.
Section B, Corporate Finance:
“Yield to Maturity of a Bond” (p. 174 and 175, vol. 1): Information was added about calculating the yield to maturity (effective interest rate) for a bond with a maturity date one year in the future if the bond pays interest only one time per year.
“Callable preferred shares” (p. 181, vol. 1): the definition was expanded to include the definition of a call premium.
“The Fair Value (Appropriate Price) of a Share of Stock” (p. 184, vol. 1): Interpretive information was added to the explanation of dividend models as used to calculate the fair value of a share of stock.
“Capital Asset Pricing Model” (p. 234-236, vol. 1): Explanatory material was added, p. 236.
The heading, “Managing Current Assets,” was corrected to “Working Capital Management” (p. 279, vol. 1).
“Marketable Securities Management” (p. 295, vol. 1): Information was added regarding the marketability of negotiable certificates of deposit.
“Economic Order Quantity (EOQ)” (p. 308-309, vol. 1): Information was added regarding the use of the model to calculate the Economic Lot Size for manufacturers.
“Bankruptcy” (p. 340-342, vol. 1): The list of the various classes of creditors and their priority in a business bankruptcy was deleted because it is no longer required for the exam.
“The Discounted Cash Flow Approach to Valuing a Business” (p. 343-350, vol. 1): The two examples of the valuation of Assimilated Stores, Inc. on pages 347 and 349 were revised to simplify and clarify them.
“Transfer Pricing and Taxes” (p. 392-393, vol. 1): Minor changes were made in the explanation, and two examples were added.
Section C, Decision Analysis:
The “High-Low Points Method” was deleted (vol. 2) because the topic was moved to the Part 1 exam.
Section D, Risk Management:
“Quantitative Risk Assessment Tools” (p. 112-113, vol. 2): Information and a question were added.
“Risk Measurement in Banks” (p. 129, vol. 2): Information about the scheduled date for implementation of Basel III was added.
Section E, Investment Decisions:
“Capital Budgeting,” “Adjustments to the Discount Rate for Risk or Inflation” (p. 203, vol. 2): Two new sub-topics, “The Capital Asset Pricing Model and the Required Rate of Return for a Project” and “Net Present Value and Risk-Adjusted Discount Rates” were added.
“Decision Trees and Valuing Real Options” (p. 207, vol. 2): The example was deleted because calculations are no longer required on the exam.
Section F, Professional Ethics:
The heading “Employee Fraud” was changed to “Employee Fraud and the Fraud Triangle,” and some information was added to the discussion of the employee hotline (p. 212, vol. 2).