CMA Sri Lanka SL2 Financial Strategy & Valuation Exam study guide
CMA Sri Lanka SL2 Financial Strategy & Valuation Exam · Work through your exam, one topic at a time.
SL2 Financial Strategy & Valuation is the second subject of the Strategic Level of the CMA Sri Lanka professional qualification, and it is the point where the programme stops asking you mainly to compute and starts asking you to decide. Candidates usually arrive from the operational and managerial levels, fluent in costing, budgeting and financial reporting, and meet a syllabus that treats the firm as a set of financing, investment and distribution choices made on behalf of stakeholders. The CMA Sri Lanka SL2 Financial Strategy & Valuation Exam study guide has 10 sections and about 2,743 words.
01Financial Strategy
Financial strategy is the top-level domain: it tests whether you can translate mission into financial objectives, choose between strategic options and judge whether a strategy creates value after financing and risk. Expect questions on the strategy hierarchy, PESTEL/SWOT, Porter's five forces and value chain, Ansoff's growth matrix, the BCG portfolio matrix, and SAF (suitability, acceptability, feasibility) evaluation.
321 words, about 2 min02Corporate Objectives and Stakeholder Value
This domain examines whose interests the company serves and how conflicts are controlled. The exam tests shareholder wealth maximisation, agency theory, stakeholder mapping, corporate governance, ESG and the measurement of stakeholder value.
300 words, about 2 min03Capital Structure
Capital structure tests whether the mix of debt and equity affects cost of capital and firm value. Learn Modigliani-Miller (MM) propositions, the tax shield, financial distress costs, trade-off theory, pecking order and EBIT-EPS analysis.
299 words, about 1 min04Cost of Capital and Gearing Decisions
Cost of capital is the discount rate for investment and valuation. SL2 tests CAPM, dividend growth, bond yields, WACC, asset and equity beta, and the effect of gearing.
267 words, about 1 min05Investment Appraisal
This domain tests the selection of long-term projects using discounted and non-discounted methods, relevant cash flows and capital rationing. NPV is the primary criterion: discount incremental after-tax cash flows at the opportunity cost of capital.
252 words, about 1 min06Capital Budgeting and Project Risk
Capital budgeting under risk tests sensitivity, scenario, simulation, risk-adjusted discount rates, certainty equivalents, decision trees and real options. Sensitivity asks how far one variable can move before NPV reaches zero.
250 words, about 1 min07Business Valuation Methods and Value-Based Management
This domain covers DCF, dividend valuation, free cash flow, multiples, asset-based valuation, EVA and MVA. The exam tests both the calculation and the logic of matching cash flow to discount rate.
267 words, about 1 min08Long-Term Financing: Equity, Debt, Hybrids and Leasing
This domain covers equity issues, debt, hybrids and leasing. You must compare financing methods by cost, dilution, control, covenants and tax.
271 words, about 1 min09Working Capital, Liquidity and Treasury Management
This domain tests the management of inventory, receivables, payables, cash and liquidity, and the role of the treasury function. The cash conversion cycle = inventory days + receivable days - payable days; a shorter cycle releases cash.
261 words, about 1 min10Financial Risk Management and Derivative Instruments
This domain covers forwards, futures, options, swaps, caps, floors and collars, and the hedging of FX and interest-rate risk. Forwards lock a future price and are customised; futures are standardised and marked to market.
255 words, about 1 min