Free CIMA CIMAPRA19-F03-1-ENG Exam Questions

Absolute Free CIMAPRA19-F03-1-ENG Exam Practice for Comprehensive Preparation 

  • CIMA CIMAPRA19-F03-1-ENG Exam Questions
  • Provided By: CIMA
  • Exam: F3 Financial Strategy (Online)
  • Certification: CIMA Professional Qualification
  • Total Questions: 305
  • Updated On: Dec 06, 2025
  • Rated: 4.9 |
  • Online Users: 610
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  • Question 1
    • Company Z has just completed the all-cash acquisition of Company A.
      Both companies operate in the advertising industry.
      The market considered the acquisition a positive strategic move by Company Z.
      Which THREE of the following will the shareholders of Company Z expect the company's directors to
      prioritise following the acquisition?

      Answer: A,C
  • Question 2
    • When valuing an unlisted company, a P/E ratio for a similar listed company may be used but adjustments to
      the P/E ratio may be necessary.
      Which THREE of the following factors would justify a reduction in the proxy p/e ratio before use? 

      Answer: A,B,C
  • Question 3
    • Company A is located in Country A, where the currency is the A$.
      It is listed on the local stock market which was set up 10 years ago.
      It plans a takeover of Company B, which is located in Country B where the currency is the B$, and where the
      stock market has been operating for over 100 years.
      Company A is considering how to finance the acquisition, and how the shareholders of Company B might
      respond to a share exchange or cash (paid in B$).
      Which of the following is likely to explain why the shareholders of Company B would prefer a share exchange
      as opposed to a cash offer?

      Answer: D
  • Question 4
    • The Board of Directors of Company T is considering a rights issue to fund a new investment opportunity
      which has a zero NPV.
      The Board of Directors wishes to explain to shareholders what the theoretical impact on their wealth will be as
      a result of different possible actions during the rights issue.
      Which THREE of the following statements in respect of theoretical shareholder wealth are true?

      Answer: A,C
  • Question 5
    • Company P is a large unlisted food-processing company.
      Its current profit before interest and taxation is $4 million, which it expects to be maintainable in the future.
      It has a $10 million long-term loan on which it pays interest of 10%.
      Corporate tax is paid at the rate of 20%.
      The following information on P/E multiples is available:

      32


      Which of the following is the best indication of the equity value of Company P? 

      Answer: D
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