Free CIMA CIMAPRO19-F03-1-ENG Exam Questions

Become CIMA Certified with updated CIMAPRO19-F03-1-ENG exam questions and correct answers

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Total 305 Questions | Updated On: Oct 27, 2025

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Question 1

A listed company in a high growth industry, where innovation is a key driver of success has always operated a

residual dividend policy, resulting in volatility in dividends due to periodic significant investments in research

and development.

The company has recently come under pressure from some investors to change its dividend policy so that

shareholders receive a consistent growing dividend. In addition, they suggested that the company should use

more debt finance.

If the suggested change is made to the financial policies, which THREE of the following statements are true?

A : may give a signal to the market that the company is entering a period of stable growth.

B : ere may be a change to the shareholder profile due to 'the clientele effect'.

C : directors will not have to take shareholder dividend preferences into consideration in future.

D : tained earnings have a lower cost than debt finance.

E : company's financial risk will increase due to its increased use of debt finance.

Answer: A,B

Question 2

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 : ll to 23.3%.

B : to 27.0%.

C : to 30.3%.

D : ll to 22.7%.

Answer: A

Question 3

The Treasurer of Z intends to use interest rate options to set an interest rate cap on Z’s borrowings. Which of the following statement is correct?

A : Treasurer should buy an interested rate floor and sell an interested cap ta the same time

B : Treasurer will retain the benefit of movcTcnt3 in interest ratc3 below the floor limit.

C : cost of a collar is lower than the cost of a cap a one.

D : Treasurer will have to negotiate the options with Z's Dark

Answer: C

Question 4

A company based in Country D, whose currency is the D$, has an objective of maintaining an operating profit

margin of at least 10?ch year.

Relevant data:

• The company makes sales to Country E whose currency is the E$. It also makes sales to Country F whose

currency is the F$.

• All purchases are from Country G whose currency is the G$.

• The settlement of all transactions is in the currency of the customer or supplier.

Which of the following changes would be most likely to help the company achieve its objective?

A : D$ strengthens against the E$ over time.

B : F$ weakens against the D$ over time.

C : D$ strengthens against the G$ over time.

D : D$ weakens against the G$ over time.

Answer: C

Question 5

A company is preparing an integrated report according to the International <IR> Framework as issued by the

International Integrated Reporting Council.

Which THREE of the following should be included in the report?

A : explanation of how the organisation's governance structure supports its ability to create value in the short, medium and long term.

B : detailed analysis of the organisation's business model.

C : challenges and uncertainties that the organisation is likely to encounter in pursuing its strategy.

D : comparison of the key elements of its financial statements with those of its main competitor.

E : ummary of the key issues discussed by directors in main board meetings.

Answer: A,B,C

Page: 1 / 61

Total 305 Questions | Updated On: Oct 27, 2025

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