Free CIMA CIMAPRO19-F03-1-ENG Exam Questions
Absolute Free CIMAPRO19-F03-1-ENG Exam Practice for Comprehensive Preparation
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CIMA CIMAPRO19-F03-1-ENG Exam Questions
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Provided By: CIMA
- Exam: F3 Financial Strategy
- Certification: CIMA Professional Qualification
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Total Questions: 305
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Updated On: Dec 05, 2025
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Rated: 4.9 |
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Online Users: 610
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Question 1
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M is an accountant who wishes to take out a forward rate agreement as a hedging instrument but the company
treasurer has advised that a short-term interest rate future would be a better option.
Which of the following is true of a short-term interest rate future?
Answer: C
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M is an accountant who wishes to take out a forward rate agreement as a hedging instrument but the company
treasurer has advised that a short-term interest rate future would be a better option.
Which of the following is true of a short-term interest rate future?
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Question 2
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Company C is a listed company. It is currently considering the acquisition of Company D. The originalfounder of Company C currently owns 52% of the shares.Alternative forms of consideration for Company D being considered are as follows:• Cash payment, financed by new borrowing• issue of new shares in Company CWhich of the following is an advantage of a cash offer over a share-for exchange from the viewpoint of theoriginal founder of Company C?
Answer: A
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Question 3
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A listed company in a high growth industry, where innovation is a key driver of success has always operated aresidual dividend policy, resulting in volatility in dividends due to periodic significant investments in researchand development.The company has recently come under pressure from some investors to change its dividend policy so thatshareholders receive a consistent growing dividend. In addition, they suggested that the company should usemore debt finance.If the suggested change is made to the financial policies, which THREE of the following statements are true?
Answer: A,B
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Question 4
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A company has 6 million shares in issue. Each share has a market value of $4.00.$9 million is to be raised using a rights issue.Two directors disagree on the discount to be offered when the new shares are issued.• Director A proposes a discount of 25%• Director B proposes a discount of 30%Which THREE of the following statements are most likely to be correct?
Answer: B,C,D
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Question 5
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A company is funded by:• $40 million of debt (market value)• $60 million of equity (market value)The company plans to:• Issue a bond and use the funds raised to buy back shares at their current market value.• Structure the deal so that the market value of debt becomes equal to the market value of equity.According to Modigliani and Miller's theory with tax and assuming a corporate income tax rate of 20%, thisplan would:
Answer: C
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