Free Online CIMA CIMAPRA19-F03-1-ENG Practice Test

Prepare Your CIMA CIMAPRA19-F03-1-ENG Exam Questions with Free online CIMAPRA19-F03-1-ENG Practice Test. Get Brilliant F3 Financial Strategy (Online) Exam Results with Valid CIMAPRA19 F03 1 ENG Exam Dumps.

Page: 1 / 61

Total 305 Questions | Updated On: May 15, 2024

Add To Cart

Question 1

A listed company in a high technology industry has decided to value its intellectual capital using the

Calculated Intangible Value method (CIV).

Relevant data for the company:

• Pays corporate income tax at 30%

• Cost of equity is 9%, pre-tax cost of debt is 7% and the WACC is 8%

• The value spread has been calculated as $26 million

Calculate the CIV for the company.

A : 228 million

B : 289 million

C : 531 million

D : 325 million

Answer: A

Question 2

Company Z has just completed the all-cash acquisition of Company A.

Both companies operate in the advertising industry.

The market considered the acquisition a positive strategic move by Company Z.

Which THREE of the following will the shareholders of Company Z expect the company's directors to

prioritise following the acquisition?

A : The realisation of anticipated post-acquisition synergies.

B : The development of a dividend policy to meet the expectations of the target company shareholders.

C : The integration and retention of key employees.

D : The regulatory approval required to complete the acquisition.

E : The retention of key customers of the acquired company.

Answer: A,C

Question 3

A is a listed company. Its shares trade on a stock market exhibiting semi-strong form efficiency.

Which of the following is most likely to increase the wealth of A's shareholders?

A : Announcing that a project will be undertaken generating a positive net present value.

B : Announcing that the final dividend will remain unchanged from the previous 3 years.

C : Announcing that a non-current asset will be revalued in the statement of financial position.

D : Announcing that inventory will be impaired.

Answer: A

Question 4

For which THREE of the following risk categories does IFRS 7 require sensitivity analysis?

A : Currency risk

B : Liquidity risk

C : Interest rate risk

D : Commodity risk

E : Credit risk

F : Supply chain risk

Answer: A,C,D

Question 5

When valuing an unlisted company, a P/E ratio for a similar listed company may be used but adjustments to

the P/E ratio may be necessary.

Which THREE of the following factors would justify a reduction in the proxy p/e ratio before use?

A : The relative lack of marketability of unlisted company shares.

B : A lower level of scrutiny and regulation for unlisted companies.

C : Unlisted companies being generally smaller and less established.

D : Unlisted companies being generally smaller and less established.

E : The forecast earnings growth being relatively higher in the unlisted company.

F : A profit item within the unlisted company's latest earnings which will not reoccur.

Answer: A,B,C

Page: 1 / 61

Total 305 Questions | Updated On: May 15, 2024

Add To Cart