Pass Your CIMA Strategic level CIMAPRA19-F03-1 Exam on Oct 13, 2022 with 346 Questions
CIMAPRA19-F03-1 Free Exam Study Guide! (Updated 346 Questions)
Difficulty in taking the CIMA F3: Financial Strategy Exam
If you want to pass your exam with an average score of at least 85%, you may trust our highly educated specialists. CIMA F3 exam dumps are the quickest way to study and pass the CIMA F3 exam. Every week, we review the CIMA F3 exam questions and answers to make sure they are up-to-date. Leader of the finance industry. The most frequently asked questions and answers about the CIMA exam. Authorized services to help you pass the exam. Study materials for the CIMA F3 exam. The CIMA F3 exam is very important for your career. Inavailable exam materials. Preparatory material that is necessary for the CIMA F3 exam. Study material that will help you prepare for the CIMA F3 exam. License holder of the CIMA F3 exam. You can trust our exam material. Our site has a wealth of study material for the CIMA F3 exam. We're committed to serving you. Grades you will get on the CIMA F3 exam. The best way to prepare for the CIMA F3 exam. Active CIMA F3 certification program. We provide all of the CIMA exam questions and answers. Compiled for the CIMA F3 exam. Most of the test takers want to pass the test. Devised CIMA F3 exam material. Internet access is required to register for the exam. Appearing in the CIMA F3 exam. CIMA exam questions and answers are important.
The CIMA F3 certification is extensive and requires a lot of preparation. Talk to the CIMA exam officer. The CIMA F3 exam is tough, but it's doable if you study the materials well. Entry requirements for the CIMA F3 exam. Advertisement on the CIMA exam website. The CIMA F3 exam is very hard, but it's doable if you study the materials well. Engineering students are eligible to get the CIMA F3 exam. Code of conduct in the CIMA F3 exam. The website is in the process of being updated to provide you with the most up-to-date information. Total number of CIMA F3 certifications issued in the last year. Saved CIMA F3 exam questions and answers. Designed for mobile devices. Complete coverage of the CIMA F3 exam. Absolutely essential CIMA F3 exam questions. Correct and updated information. You can pass the exam by applying what you've learned. Rewarding CIMA F3. The CIMA F3 exam can be taken online or offline. Concepts and requirements of the CIMA F3 exam. Preparing for the CIMA F3 exam is not easy. Contact us if you have specific questions. Drag and drop page is the easiest way to access the CIMA F3 exam. Our experts will send you an email with complimentary materials.
Format of the CIMA F3: Financial Strategy Exam
- Passing score: 70 percent
- Number of questions: 60
- Language: English
- Length of Examination: 90 minutes
- Format: Numerous choices, multiple responses
Certification Path for CIMA F3: Financial Strategy Exam
It's a radical departure from traditional courses, which emphasize accounting, taxation, and auditing. By 2021, the CIMA F3 test will be the most in-demand of the CIMA certifications. Using the most recent CIMA F3 exam dumps, you can easily pass CIMA F3. Using this method, you will have a high success rate on the CIMA F3 exam. Hired the CIMA F3 exam as a postgraduate student. You can also draft your own strategy and prepare ample time to take this exam. Assure that you can pass the CIMA F3 exam after reading this guide. Panel of experts will be of great help. Paper writing service helps you to take the CIMA F3 exam. Career options after passing the CIMA F3 exam. You can use our CIMA F3 exam to become an independent consultant. To become a certified financial consultant (CFC) after passing the CIMA F3 exam. Mock exams are available for you to practice. Account for the CIMA F3 exam is that you can achieve your goals by preparing to take the exam. Opportunities to use your skills. You can apply what you've learned to be a professional. Careers for those who prepare to take the CIMA F3 exam.
Quick and easy preparation for the CIMA F3 exam. The delivery method is flexible. This will ensure that you have the much-needed preparation before the CIMA F3 exam. Guaranteed to pass the CIMA F3 exam. You can use this guide to study for the CIMA F3 exam. Instantly available for download. You can start studying for the exam today. Prepared with the most current exam information. Save time and money by using this quick and easy CIMA F3 exam prep. Complete coverage of the CIMA F3 exam. Assembled for the most up-to-date exam information. You can get a deep understanding of this guide. The trustworthy and reliable study material for the CIMA F3 exam. Videos and preparation guides that will help you pass the exam. Simple and easy instructions to follow. Start preparing with our CIMA F3 exam prep guide. Thousands of students have passed this exam. Information to help you prepare for the CIMA F3 exam. CIMA F3 exam dumps will be of great help. The professionals who provide studies and practice exams for the CIMA exam. Package for the CIMA F3 exam. Only our experts can provide you with this guide.
NEW QUESTION 198
A company currently has a 6.25% fixed rate loan but it wishes to change the interest style of the loan to variable by using an interest rate swap directly with the bank.
The bank has quoted the following swap rate:
* 5.50% - 5.55% in exchange for LIBOR
LIBOR is currently 5%.
If the company enters into the swap and LIBOR remains at 5%, what will the company's interest cost be?
- A. 6.25%
- B. 5.00%
- C. 5.70%
- D. 5.75%
Answer: D
NEW QUESTION 199
Company C is a listed company. It is currently considering the acquisition of Company D.
The original founder 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 C
Which of the following is an advantage of a cash offer over a share-for exchange from the viewpoint of the original founder of Company C?
- A. A share-for-share exchange would require the approval of the Competition Authorities but a cash offer would not.
- B. A share-for-share exchange would require the approval shareholders in Company C but a cash offer would not.
- C. A share for share exchange would result in a significant change in control of Company C whereas a cash offer would not.
- D. A cash offer would result in a lower gearing ratio therefore reduce the weighted overage cost of capital whereas a cash offer would not.
Answer: C
NEW QUESTION 200
Integrated reporting is designed to make visible the capitals on which the organisation depends, and how the organisation uses those capitals to create value in the short, medium and long term
Which THREE of the following capitals are specifically identified in the Integrated Reporting <IR> Framework?
- A. Research and Development
- B. Community
- C. Financial
- D. Human
- E. Manufactured
Answer: D,E
NEW QUESTION 201
At the last financial year end, 31 December 20X1, a company reported:
The corporate income tax rate is 30% and the bank borrowings are subject to an interest cover covenant of 4 times.
The results are presently comfortably within the interest cover covenant as they show interest cover of 8.3 times. The company plans to invest in a new product line which is not expected to affect profit in the first year but will require additional borrowings of $20 million at an annual interest rate of 10%.
What is the likely impact on the existing interest cover covenant?
- A. Interest cover would reduce to 5 times and the covenant would NOT be breached.
- B. Interest cover would reduce to 5 times and the covenant would be breached.
- C. Interest cover would reduce to 3 times and the covenant would NOT be breached.
- D. Interest cover would reduce to 3 times and the covenant would be breached.
Answer: A
NEW QUESTION 202
A private company was formed five years ago and is currently owned and managed by its five founders. The founders, who each own the same number of shares have generally co-operated effectively but there have also been a number of areas where they have disagreed
The company has grown significantly over this period by re-investing its earnings into new investments which have produced excellent returns
The founders are now considering an Initial Public Offering by listing 70% of the shares on the local stock exchange
Which THREE of the following statements about the advantages of a listing are valid?
- A. Provides an exit route for the founders
- B. Increases the profile and reputation of the business.
- C. Increases dividend payouts
- D. Reduces agency conflict
- E. Helps access to wider sources of finance.
Answer: A,B,E
NEW QUESTION 203
A company is considering either directly exporting its product to customers in a foreign country or setting up a subsidiary in the foreign country to manufacture and supply customers in that country.
Details of each alternative method of supplying the foreign market are as follows:
There is an import tax on product entering the foreign country of 10% of sales value.
This import duty is a tax-allowable deduction in the company's domestic country.
The exchange rate is A$1.00 = B$1.10
Which alternative yields the highest total profit after taxation?
- A. Domestic: A$33,750
- B. Domestic: A$41,250
- C. Foreign subsidiary: A$38,500
- D. Foreign subsidiary: A$35,000
Answer: D
NEW QUESTION 204
The financial assistant of a geared company has prepared the following calculation of the company's equity value:
Useful information;
* Tax rate - 20%
* Cost of equity = 12%
* Weighted average cost of capital (WACC) < 10%
" Debt finance of the company comprises a $6 million 7% undated bond trading at par Valuation workings.
Which of the following errors has been made by the financial assistant?
- A. A deduction for debt value is missing.
- B. Discounting at WACC is incorrect.
- C. A two year discount factor is incorrect in the perpetuity calculation.
- D. The 20% tax charge is missing.
Answer: A
NEW QUESTION 205
A profitable company wishes to dispose of a loss-making division that generated negative free cashflow in the last financial year.
The division requires significant new investment to return it to profitability.
Which of the following valuation approaches is likely to be the most useful to the company when negotiating the sales price?
- A. Asset basis
- B. Discounted forecast free cashflow
- C. P/E ratio applied to forecast earnings next year
- D. Dividend growth model
Answer: B
NEW QUESTION 206
A company has in a 5% corporate bond in issue on which there are two loan covenants.
* Interest cover must not fall below 3 times
* Retained earnings for the year must not fall below $3.5 million
The Company has 200 million shares in issue.
The most recent dividend per share was $0.04.
The Company intends increasing dividends by 10% next year.
Financial projections for next year are as follows:
Advise the Board of Directors which of the following will be the status of compliance with the loan covenants next year?
- A. The company will breach the covenant in respect of retained earnings only.
- B. The company will be in breach of the covenant in respect of interest cover only.
- C. The company will be in compliance with both covenants.
- D. The company will be in breach of both covenants.
Answer: A
NEW QUESTION 207
A company is considering whether to lease or buy an asset.
The following data applies:
* The bank will charge interest at 7.14% per annum
* The asset will cost $1 million
* Tax-allowable depreciation is available on a straight line basis over 5 years
* There is no residual value
* Corporate tax is paid at 30% in the year when the profit is earned
What is the NPV of the buy option?
Give your answer to the nearest $000.
$ ?
- A. 0
- B. 1
Answer: B
NEW QUESTION 208
A company is financed as follows:
* 400 million $1 shares quoted at $3.00 each.
* $800 million 5% bonds quoted at par.
The company plans to raise $200 million long term debt to finance a project with a net present value of
$100 million.
The bank that is providing the debt is insisting on a maximum gearing level covenant.
Gearing will be based on market values and calculated as debt/(debt + equity).
What is the lowest figure for the gearing covenant that the bank could impose without the company breaching the agreement?
- A. 44%
- B. 45%
- C. 43%
- D. 46%
Answer: A
NEW QUESTION 209
A listed company is planning a share repurchase.
The following data applies:
* There are 10 million shares in issue
* The share repurchase will involve buying back 20% of the shares at a price of $0.75
* The company is holding $2 million cash
* Earnings for the current year ended are $2 million
The Directors are concerned about the impact that this repurchase programme will have on the company's cash balance and current year earnings per share (EPS) ratio.
Advise the directors which of the following statements is correct?
- A. The cash balance will decrease by 20% and the EPS will increase by 25%.
- B. The cash balance will decrease by 20% and the EPS will decrease by 25%.
- C. The cash balance will decrease by 75% and EPS will increase by 25%.
- D. The cash balance will decrease by 75% and EPS will decrease by 25%.
Answer: C
NEW QUESTION 210
XYZ is a multi-national group with subsidiary AA in Country A and subsidiary BB in Country B. The capital structures of AA and BB are set up to take advantage of the lower tax rate in Country A Thin capitalisation rules in Country B will limit the ability for either AA or BB to claim tax relief on:
- A. interest paid by AA
- B. interest earned by BB.
- C. interest paid by BB
- D. interest earned by AA
Answer: C
NEW QUESTION 211
Company A is planning to acquire Company B by means of a cash offer. The directors of Company B are prepared to recommend acceptance if a bid price can be agreed. Estimates of the net present value (NPV) of future cash flows for the two companies and the combined group post acquisition have been prepared by Company A's accountant. There are as follows:
What is the maximum price that Company A should offer for the shares in Company B?
Give your answer to the nearest $ million
Answer:
Explanation:
150
NEW QUESTION 212
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. Private placement of a bond
- C. Retained earnings
- D. Bank overdraft
Answer: A
NEW QUESTION 213
Company Z wishes to borrow $50 million for 10 years at a fixed rate of interest.
Two alternative approaches are being considered: A. Issue a 10 year bond at a fixed rate of 6%, or B. Borrow from the bank at Libor +2.5% for a 10 year period and simultaneously enter into a 10 year interest rate swap.
Current 10 year swap rates against Libor are 4.0% - 4.2%.
What is the difference in the net interest cost between the two alternative approaches?
- A. Approach A is 0.5% a year less expensive
- B. Approach B is 2.0% a year less expensive
- C. Approach B is 2.2% a year less expensive
- D. Approach A is 0.7% a year less expensive
Answer: D
NEW QUESTION 214
Under traditional theory, an increase in a company's WACC would cause the value of the company to:
- A. Decrease
- B. Either increase or decrease
- C. Stay the same
- D. Increase
Answer: A
NEW QUESTION 215
A company has a covenant on its 5% long-term bond, stipulating that its retained earnings must not fall below
$2 million.
The company has 100 million shares in issue.
Its most recent dividend was $0.045 per share. It has committed to grow the dividend per share by 4% each year.
The nominal value of the bond is $60 million. It is currently trading at 80% of its nominal value.
Next year's earnings before interest and taxation are projected to be $11.25 million.
The rate of corporate tax is 20%.
If the company increases the dividend by 4%, advise the Board of Directors if the level of retained earnings will comply with the covenant?
- A. Covenant is not breached as retained earnings = $2.10 million.
- B. Covenant is breached as retained earnings = $1.92 million.
- C. Covenant is not breached as retained earnings = $2.40 million.
- D. The covenant is not breached as retained earnings = $4.68 million.
Answer: B
NEW QUESTION 216
Z wishes to borrow at a floating rate and has been told that it can use swaps to reduce the effective interest rate it pays. Z can borrow floating at Libor ' 1, and fixed at 10%.
Which of the following companies would be the most appropriate for Z to enter into a swap with?
- A. Company E - it can borrow floating at L +1 1/2 and fixed at 12%
- B. Company A - it can borrow floating L +1 1/2 and fixed at 9.5%
- C. Company C - it can borrow at L +1 1/2 and fixed at 9%
- D. Company D - it can borrow at L +1 1/2 and fixed at 10.5%
Answer: C
NEW QUESTION 217
Company C has received an unwelcome takeover bid from Company P.
Company P is approximately twice the size of Company C based on market capitalisation.
Although the two companies have some common business interests, the main aim of the bid is diversification for Company P.
The offer from Company P is a share exchange of 2 shares in Company P for 3 shares in Company C.
There is a cash alternative of $5.50 for each Company C share.
Company C has substantial cash balances which the directors were planning to use to fund an acquisition.
These plans have not been announced to the market.
The following share price information is relevant. All prices are in $.
Which of the following would be the most appropriate action by Company C's directors following receipt of this hostile bid?
- A. Change the Articles of Association to increase the percentage of shareholder votes required to approve a takeover.
- B. Refer the bid to the country's competition authorities.
- C. Write to shareholders explaining fully why the company's share price is under valued.
- D. Pay a one-off special dividend.
Answer: C
NEW QUESTION 218
......
CIMAPRA19-F03-1 Dumps for CIMA Strategic level Certified Exam Questions and Answer: https://examcertify.passleader.top/CIMA/CIMAPRA19-F03-1-exam-braindumps.html