CMA (IMA) Practice Test 11

10 free CMA (IMA) practice questions in the real exam format, covering the official content areas, with an explanation for every answer.

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Question 1 of 10

Corporate Finance

Garrison Foods has net income of $6,000,000 and 3,000,000 common shares outstanding, trading at $50 per share. The board plans to use $15,000,000 of excess cash, which currently earns 4% before tax, to repurchase 300,000 shares at $50. The tax rate is 25%. Assuming operating income is unchanged, earnings per share after the repurchase will be closest to