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: Jul 22, 2026
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Rated: 4.9 |
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Online Users: 610
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Question 1
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The Board of Directors of a listed company is considering the company's dividend/retentions policy.The inflation rate in the economy is currently high and is expected to remain so for the foreseeable future.The board are unsure what impact the high level of inflation might have on the dividend policy.Which THREE of the following statements are true?
Answer: B,C,D
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Question 2
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A company plans to acquire new machinery.It has two financing options; buy outright using a bank loan, or a finance lease.Which of the following is an advantage of a finance lease compared with a bank loan?
Answer: B
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Question 3
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Company A is a listed company that produces pottery goods which it sells throughout Europe. The pottery isthen delivered to a network of self employed artists who are contracted to paint the pottery in their own homes.Finished goods are distributed by network of sales agents.The directors of Company A are now consideringacquiring one or more smaller companies by means of vertical integration to improve profit margins.Advise the Board of Company A which of the following acquisitions is most likely to achieve the stated aimof vertical integration?
Answer: D
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Company A is a listed company that produces pottery goods which it sells throughout Europe. The pottery is
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Question 4
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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 5
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A company is concerned that a high proportion of its debt portfolio consists of variable rate finance with aninterest rate of LIBOR ' 1 .0%.It is considering using an interest rate swap to reduce interest rate risk out is concerned about additionalfinance cost this might create.A bank has quoted swap rates of 3% 3.5% against LIBOR.A bank has quoted swap rates of 3% 3.5% against LIBOR.Is an interest rate swap likely to be beneficial to the company at current LIBOR rates?
Answer: B
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