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: Jun 17, 2026

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Question 1

A company financed by equity and debt can be valued by discounting:

A : ee cash flow before interest at WACC.

B : ee cash flow before interest at the cost of equity.

C : ee cash flow after interest at WACC.

D : ee cash flow after interest at the cost of equity.

Answer: A

Question 2

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 3

Company A is planning to acquire Company B at a price of $ 65 million by means of a cash bid.

Company A is confident that the merged entity can achieve the same price earnings ratio as that of Company

What does Company A expect the value of the merged entity to be post acquisition?

A : $122.5 million

B : $156.0 million

C : $187.5 million

D : $207.0 million

Answer: A

Question 4

Company A needs to raise AS500 mi lion to invest in a new project and is considering using a pub ic issue of

bonds to finance the investment.

Which THREE of the following statements-relating to this bond issue are true?

A : company must be listed before it can issue bones.

B : largest issuer of bond i3 the government.

C : rchasing bonds in the capital markets enables entities to borrow large amounts of finance.

D : bond market is unregulated making it easier to raise finance

E : nds issues in the corporate debt market are underwritten.

Answer: A,B,C

Question 5

A company plans to acquire new machinery.

It has two financing options; buy outright using a bank loan, or a finance lease.

Which of the following is an advantage of a finance lease compared with a bank loan?

A : is "off-balance sheet" and will not affect the company's gearing.

B : interest rate offered might be more favourable because the lessor has the security of the asset.

C : x depreciation allowances may be passed on to the company by the lessor.

D : lessor provides maintenance of the asset.

Answer: B

Page: 1 / 61

Total 305 Questions | Updated On: Jun 17, 2026

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