CIMA CIMAPRA19-F03-1 dumps - in .pdf

CIMAPRA19-F03-1 pdf
  • Exam Code: CIMAPRA19-F03-1
  • Exam Name: F3 Financial Strategy
  • Updated: Nov 03, 2026
  • Q & A: 435 Questions and Answers
  • PDF Price: $59.99
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  • Exam Code: CIMAPRA19-F03-1
  • Exam Name: F3 Financial Strategy
  • Updated: Nov 03, 2026
  • Q & A: 435 Questions and Answers
  • PDF Version + PC Test Engine + Online Test Engine
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CIMAPRA19-F03-1 Testing Engine
  • Exam Code: CIMAPRA19-F03-1
  • Exam Name: F3 Financial Strategy
  • Updated: Nov 03, 2026
  • Q & A: 435 Questions and Answers
  • Software Price: $59.99
  • Testing Engine

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CIMA CIMAPRA19-F03-1 Exam Syllabus Topics:

TopicDetails
Topic 1
  • Evaluate the various valuation methods
  • Analyse strategic financial policy decisions
Topic 2
  • Recommend ways of managing financial risks
  • Evaluate the capital structure of a firm
Topic 3
  • Evaluate equity finance
  • Evaluate financial risks
  • Evaluate dividend policy
Topic 4
  • Analyse long-term debt finance
  • Discuss post-transaction issues
Topic 5
  • Analyse pricing and bid issues
  • Discuss the external influences on financial strategic decisions
Topic 6
  • Discuss the sources and types of financial risks
  • Advice on strategic financial objectives

Reference: https://planner.cimaglobal.com/proqual/2019/strategic/F3

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CIMA F3 Financial Strategy Sample Questions:

Question #1

Two unlisted companies TTT and YYY are being valued. The companies have similar capital structures and risk profiles and operate in the same industry sector It is easier to value TTT than to value YYY because there have recently been several well-publicised private sales of TTT shares.
Relevant company data:

What is the best estimate of YYY's share price?

  • A. $0.60
  • B. $0.94
  • C. $1.20
  • D. $0.68
Reveal Solution  Discussion  0

Correct Answer: C  🗳️

Question #2

The competition authorities are investigating the takeover of Company Z by a larger company, Company Y.
Both companies are food retailers.
The takeover terms involve using a part cash, part share exchange means of payment.
Company Z is resisting the bid, arguing that it undervalues its business, while lobbying extensively among politicians to sway public opinion against the bidder.
Which of the following actions by Company Y is most likely to persuade the competition authorities to approve the acquisition?

  • A. Company Y agrees to dispose of specified outlets which geographically overlap those of Company Z.
  • B. Company Y increases the cash element of its bid offer.
  • C. Company Y undertakes to pass on any cost savings to customers.
  • D. Company Y guarantees to preserve employment at its cental distribution depot.
Reveal Solution  Discussion  0

Correct Answer: A  🗳️

Question #3

LPM Company is based in Country C. whose currency is the CS
It has entered Into a contract to buy a machine in three months' time. The supplier is overseas and the payment is to be made in a different currency from the CS The treasurer at LPM Company is considering using a money market hedge to manage the transaction risk associated with a payment.
The assumptions of interest rate parity apply
Which THREE of the following statements concerning the use of a money market hedge for this supplier payment are correct?

  • A. It offers a significantly better outcome than a forward contract
  • B. lt avoids the need to find immediate finance
  • C. It manages transaction risk
  • D. Any opportunity to benefit from future exchange rate movements is lost.
  • E. It can be tailored to match the size of the payment
Reveal Solution  Discussion  0

Correct Answer: A,C,E  🗳️

Question #4

Listed Company A has prepared a valuation of an unlisted company. Company B. to achieve vertical integration Company A is intending to acquire a controlling interest in the equity of Company B and therefore wants to value only the equity of Company B.
The assistant accountant of Company A has prepared the following valuation of Company B's equity using the dividend valuation model (DVM):
Where:
* S2 million is Company B's most recent dividend
* 5% is Company B's average dividend growth rate over the last 5 years
* 10% is a cost of equity calculated using the capital asset pricing model (CAPM), based on the industry average beta factor

Which THREE of the following are valid criticisms of the valuation of Company B's equity prepared by the assistant accountant?

  • A. The DVM calculation should use Company A's cost of equity rather than Company B's cost of equity
  • B. The 5% growth rate may not reflect the future growth of Company B.
  • C. An unlisted company cannot use the capital asset pricing model to calculate its cost of equity
  • D. The beta factor used may not reflect Company B's financial risk.
  • E. It is better to use the present value of earnings rather than present value of dividends to value a controlling interest
Reveal Solution  Discussion  0

Correct Answer: A,B,D  🗳️

Question #5

A company has an opportunity to invest in a positive net present value project, but the project would require debt finance that would push the company's gearing ever a limit imposed by a debt covenant on an existing loan.
Which THREE of the following actions could be taken by the company?

  • A. The company could approach its existing Lenders to negotiate a relaxation of :he conditions imposed by the covenant.
  • B. The company could seek alternative sources of finding, such as a reduction in the annual dividend payment, to finance the project.
  • C. The directors could meet with key shareholder to discuss whether they wish the project proceed despite the breach of the covenant
  • D. The directors could proceed will the project because their primary duly is maximise shared older wealth, even if that conflicts with lenders' interest.
  • E. The project could proceed if the cash inflows from the project will enable some of the debt to be repaid before the end of the financial year and so the breach of covenant may never be detected
  • F. The project could be foregone if it cannot be funded without breaching the covenant
Reveal Solution  Discussion  0

Correct Answer: A,B,F  🗳️

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