Ultimate Guide to the F3 - Latest Mar 25, 2022 Edition Available Now
2022 Updated Verified Pass F3 Exam - Real Questions and Answers
Cost of the CIMA F3: Financial Strategy Exam
The cost of the CIMA F3: Financial Strategy Exam is 300 US Dollars.
Best solution for the preparation of CIMA F3: Financial Strategy Exam
There are lots of ways to prepare for any exam. You can take classes at a local college or university, but they can be extremely expensive. Products from big companies may be very good, but they often cost a lot of money. Support from a larger company may be good, but again they can charge a lot of money. Simulator is the cheapest way to pass CIMA F3: Financial Strategy Exam. CIMA F3 exam dumps are developed by expert IT lecturers. It is the best choice. You can get started at any time. Files with a lot of questions and answers. All exam questions and answers are updated regularly to match the latest CIMA F3: Financial Strategy Exam questions. Offer the best and most convenient simulator for the preparation of CIMA F3: Financial Strategy Exam. Collection of files and most recent questions and answers is updated regularly. Secure payment is guaranteed. Target and focus on the CIMA F3: Financial Strategy Exam materials. Data security is the top priority. Guarantee the best quality and accuracy of CIMA F3: Financial Strategy Exam. You can find free demo for each product. Real CIMA F3: Financial Strategy Exam questions and answers. PDF format of the CIMA F3: Financial Strategy Exam. 100% pass guarantee for CIMA F3: Financial Strategy Exam. Updates are also provided in time. Content of the CIMA F3: Financial Strategy Exam is very comprehensive. You can take the exam directly in your computer or laptop.
The product will be provided to you via email and an account will be set up for you after purchase. Months of preparation is required, but it will be worth it. Question and answer format with an explanation of the answer. Textbox for the exercise of the product. Hyperlinks to relevant topics in the presentation. Vce format of the CIMA F3: Financial Strategy Exam product is provided with some quizzes. Very simple steps to start using the product immediately. Document format of the CIMA F3: Financial Strategy Exam is convenient for reading. Both Mac and Windows software support.Refund policy if you are unhappy with the product. Hours of study are very important to pass the exam. Befitting preparation will be required to pass the CIMA F3: Financial Strategy Exam. It would be good if you can answer some questions before taking the actual exam. Comprehensive explanations with diagrams.
NEW QUESTION 98
Company HJK is planning to bid for listed company BNM
Financial data for BNM for the financial year ended 31 December 20X1:
HJK is not forecasting any growth in these figures for the foreseeable future Profit and cost data above should be assumed to be equivalent to cash flow data when answenng this question Which THREE of the following approaches would be most appropriate for HJK to use to value the equity of BNM?
- A. Cash flows of S14 million discounted at the cost of equity
- B. Share price x number of shares in issue
- C. Share price x number of shares in issue plus retained profits
- D. Cash flows of S24 million discounted at the cost of equity
- E. Cash flows of $30 million (= S40 million net of tax at 25%) discounted at WACC minus the value of debt
Answer: B,C,E
NEW QUESTION 99
A listed company is financed by debt and equity.
If it increases the proportion of debt in its capital structure it would be in danger of breaching a debt covenant imposed by one of its lenders.
The following data is relevant:
The company now requires $800 million additional funding for a major expansion programme.
Which of the following is the most appropriate as a source of finance for this expansion programme?
- A. Rights issue
- B. Retained earnings
- C. Bank overdraft
- D. Private placement of a bond
Answer: A
NEW QUESTION 100
A company in country T is considering either exporting its product directly to customers in country P or establishing a manufacturing subsidiary in country P.
The corporate tax rate in country T is 20% and 25% tax depreciation allowances are available Which TIIRCC of the following would be considered advantages of establishing a subsidiary in country T?
- A. Year 1 tax depreciation allowances of 100% are available in country P.
- B. There are high customs cuties payable of products entering country P.
- C. The corporate tsx rate in country P is 40%.
- D. There is a double tax treaty between country T and country P.
- E. There are restrictions on companies wishing to remit profit from country P
Answer: A,B,D
NEW QUESTION 101
Company A is planning to acquire Company B.
Company A's managers think they can improve the performance of Company B to the extent that its own P/E ratio should be applied to Company B's earnings.
Relevant Data:
What is the expected synergy if the acquisition goes ahead?
Give your answer to the nearest $ million.
$ ? million
Answer:
Explanation:
8, 8000000
NEW QUESTION 102
A company's dividend policy is to pay out 50% of its earnings.
Its most recent earnings per share was $0.50, and it has just paid a dividend per share of $0.25.
Currently, dividends are forecast to grow at 2% each year in perpetuity and the cost of equity is 10.5%.
In order to grow its earnings and dividends, the company is considering undertaking a new investment funded entirely by debt finance. If the investment is undertaken:
* Its cost of equity will immediately increase to 12% due to the increased finance risk.
* Its earnings and dividends will immediately commence growing at 4% each year in perpetuity.
Which of the following is the expected percentage change in the share price if the new investment is undertaken?
- A. Increase = 2%
- B. Increase = 8.3%
- C. Increase = 10.5%
- D. Decrease = 7.7%
Answer: B
NEW QUESTION 103
Company X is based in Country A, whose currency is the A$.
It trades with customers in Country B, whose currency is the B$.
Company X aims to maintain its revenue from exports to Country B at 25% of total revenue.
Company A has the following forecast revenue:
The forecast revenue from Country B has assumed an exchange rate of A$1/B$2, that is A$1 = B$2.
If the B$ depreciates against the A$ by 10%, the ratio of revenue generated from Country B as a percentage of total revenue will:
- A. rise to 30.3%.
- B. rise to 27.0%.
- C. fall to 23.3%.
- D. fall to 22.7%.
Answer: C
NEW QUESTION 104
A listed company follows a policy of paying a constant dividend. The following information is available:
* Issued share capital (nominal value $0.50) $60 million
* Current market capitalisation $480 million
The shareholders are requesting an increased dividend this year as earnings have been growing. However, the directors wish to retain as much cash as possible to fund new investments. They therefore plan to announce a
1-for-10 scrip dividend to replace the usual cash dividend.
Assuming no other influence on share price, what is the expected share price following the scrip dividend?
Give your answer to 2 decimal places.
Answer:
Explanation:
$ ?
3.64, 3.63, 3.65
NEW QUESTION 105
Company T is a listed company in the retail sector.
Its current profit before interest and taxation is $5 million.
This level of profit is forecast to be maintainable in future.
Company T has a 10% corporate bond in issue with a nominal value of $10 million.
This currently trades at 90% of its nominal value.
Corporate tax is paid at 20%.
The following information is available:
Which of the following is a reasonable expectation of the equity value in the event of an attempted takeover?
- A. $65.0 million
- B. $41.6 million
- C. $50.2 million
- D. $32.0 million
Answer: B
NEW QUESTION 106
A company is valuing its equity prior to an initial public offering (IPO).
Relevant data:
* Earnings per share $1.00
* WACC is 8% and the cost of equity is 12%
* Dividend payout ratio 40%
* Dividend growth rate 2% in perpetuity
The current share price using the Dividend Valuation Model is closest to:
- A. $4.00
- B. $6.80
- C. $6.12
- D. $4.08
Answer: D
NEW QUESTION 107
Company X is an established, unquoted company which provides IT advisory services.
The company's results and cashflows are growing steadily and it has few direct competitors due to the very specialised nature of it's business. Dividends are predictable and paid annually.
Company P is looking to buy 30% of company X's equity shares.
Which TWO of the following methods are likely to be considered most suitable valuation methods for valuing company P's investment in Company X?
- A. P/E ratio method using IT industry average
- B. Earnings yield method using a listed IT company as proxy
- C. Dividend based using DVM
- D. Asset based using replacement cost
- E. Cash based using free cash flow before interest
Answer: C,E
NEW QUESTION 108
A government is currently considering the privatisation of the national airline. The shares are to be offered to the public via a fixed price Initial Public Offering (IPO).
Which THREE of the following statements are correct?
- A. The use of a fixed price offer will ensure that the government raises the maximum amount of finance.
- B. The rational airline will receive significant financial resources as a direct result of the shares company shares in the IPO.
- C. The rational airline employees will no longer be public sector employees following the completion of the privatisation
- D. An IPO is normally underwritten
- E. The government will receive significant financial resources from the sale of its shareholding in the national airline.
Answer: A,B,E
NEW QUESTION 109
Company C invests heavily in Research and Development an need to raise $45 million to finance future projects. It has decided to use equity finance raised by a tender offer, The following tender offers have been received from potential investors:
Company C wishes to select an offer price that will project shareholders from a significant dilution of control but still raise the required amount of finance.
What offer price should Company C's select?
- A. $4.00
- B. $4.50
- C. $4.75
- D. $4.25
Answer: B
NEW QUESTION 110
An unlisted company wishes to obtain an estimated value for its shares in anticipation of a private sale of a large parcel of shares.
Relevant data for the unlisted company:
* It has a residual dividend policy.
* It has earnings that are highly sensitive to underlying economic conditions.
* It is a small business in a large industry where there are listed companies but there are none with a similar capital structure.
The company intends to base valuations on the cost of equity of a proxy company after adjusting for any differences in capital structure where appropriate.
Which of the following methods is likely to give the most accurate equity value for this unlisted company?
- A. P/E based valuation using the P/E of a similar listed company in the same industry.
- B. Discounted cash flow analysis at WACC based on free cash flow to equity.
- C. Dividend valuation model.
- D. Net asset valuation.
Answer: C
NEW QUESTION 111
A company has identified potential profitable investments that would require a total of S50 million capital expenditure over the next two years The following information is relevant.
* The company has 100 million shares in issue and has a market capitalisation of S500 million
* It has a target debt to equity ratio of 40% based on market values This ratio is currently 30%
* Earnings for the current year are expected to be S1 00 million
* Its last dividend payment was $1 per share One of the company's objectives is to increase dividends by at least 10% each year
* The company has no cash reserves
Which of the following is the most suitable method of financing to meet the company's requirements?
- A. Increase debt to meet the target debt to equity ratio.
- B. Maintain dividends at $1 per share for the next two years.
- C. Use a share repurchase scheme rather than pay a cash dividend
- D. Reduce dividends for this year only to 50 cents a share.
Answer: C
NEW QUESTION 112
A company plans to raise S15 million to finance an expansion project using a rights issue Relevant data
* Shares will be offered at a 20% discount to the present market price of S12 50 per share
* There are currently 3 million shares in issue
* The project is forecast to yield a positive NPV of $9 million
What is the yield-adjusted Theoretical Ex-Rights Price following the announcement of the rights issue?
- A. $9.50
- B. $11.67
- C. $13.67
- D. $11 25
Answer: B
NEW QUESTION 113
A company needs to raise $20 million to finance a project.
It has decided on a rights issue at a discount of 20% to its current market share price.
There are currently 20 million shares in issue with a nominal value of $1 and a market price of $5 per share.
Calculate the terms of the rights issue.
- A. 1 new share for every 20 existing shares
- B. 1 new share for every 4 existing shares
- C. 1 new share for every 25 existing shares
- D. 1 new share for every 5 existing shares
Answer: B
Explanation:
Calc_Set2
NEW QUESTION 114
Which THREE of the following would be most important if a hospital wishes to review the effectiveness of its services?
- A. The proportion of surgical procedures that are deemed to be successful.
- B. Staff costs compared to previous years.
- C. Patient satisfaction ratings.
- D. Revenue generated from car park charges.
- E. Average waiting times for treatment.
Answer: A,C,E
NEW QUESTION 115
XYZ has a variable rate loan of $200 million on which it is paying interest of Liber ' 3%.
XYZ entered into a swap with AG bank to convert this to a fixed rate 8% loan. AB bank charges an annual commission of 0.4% for making this arrangement Calculate the net payment from KYZ to AB bank at the end of the first year if Libor was 2% throughout the year.
Give your answer in $ million, to one decimal place.
Answer:
Explanation:
22.8
NEW QUESTION 116
A venture capitalist invests in a company by means of buying:
* 9 million shares for $2 a share and
* 8% bonds with a nominal value of $2 million, repayable at par in 3 years' time.
The venture capitalist expects a return on the equity portion of the investment of at least 20% a year on a compound basis over the first 3 years of the investment.
The company has 10 million shares in issue.
What is the minimum total equity value for the company in 3 years' time required to satisify the venture capitalist's expected return?
Give your answer to the nearest $ million.
Answer:
Explanation:
$ million.
34, 35, 34000000, 35000000
NEW QUESTION 117
A company is based in Country Y whose functional currency is YS. It has an investment in Country Z whose functional currency is ZS This year the company expects to generate ZS20 million profit after tax.
Tax Regime
* Corporate income tax rate in Country Y is 60%
* Corporate income tax rate in Country Z Is 30%
* Full double tax relief is available
Assume an exchange rate of YS1 = ZS5
What is the expected profit after tax in YS if the ZS profit is remitted to Country Y?
- A. YS57.14 million
- B. YS1 60 million
- C. YS2 29 million
- D. YS6.67 million
Answer: C
NEW QUESTION 118
A company intends to sell one of its business units, Company R by a management buyout (MBO).
A selling price of $100 million has been agreed.
The managers are discussing with a bank and a venture capital company (VCC) the following financing proposal:
The VCC requires a minimum return on its equity investment in the MBO of 30% a year on a compound basis over 5 years.
What is the minimum TOTAL equity value of Company R in 5 years time in order to meet the VCC's required return?
Give your answer to one decimal place.
$ ? million
Answer:
Explanation:
111.4, 111, 111.0, 111.1, 111.2, 111.3, 111.5, 111.6, 111.7
NEW QUESTION 119
......
Dumps Moneyack Guarantee - F3 Dumps Approved Dumps: https://www.torrentexam.com/F3-exam-latest-torrent.html
Verified F3 Exam Dumps PDF [2022] Access using TorrentExam: https://drive.google.com/open?id=1IahKhBnzMKCpnjA6vlbqDDV1GkP1rDbv
