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Get to Know the Real Exam with ValidExam CIMA F3 Practice Test
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CIMA F3 (Financial Strategy) Certification Exam is a professional certification exam that is designed to test the knowledge and skills of financial professionals who want to take their careers to the next level. F3 exam is offered by the Chartered Institute of Management Accountants (CIMA), which is a globally recognized professional body that provides training and certification programs for management accountants. The F3 Exam is focused on financial management and strategic decision-making, and it is an essential qualification for professionals who want to work in senior-level financial roles.
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CIMA F3 Financial Strategy Sample Questions (Q186-Q191):NEW QUESTION # 186
A company plans to cut its dividend but is concerned that the share price will fall.
This demonstrates the _____________ effect.
Answer:
Explanation:
dividend signaling
NEW QUESTION # 187
A company has 8% convertible bonds in issue. The bonds are convertible in 3 years time at a ratio of 20 ordinary shares per $100 nominal value bond.
Each share:
* has a current market value of $5.60
* is expected to grow at 5% each year
What is the expected conversion value of each $100 nominal value bond in 3 years' time?
- A. $129.6
- B. $100.0
- C. $117.6
- D. $112.0
Answer: A
NEW QUESTION # 188
An all-equity financed company currently generates total revenue of $50 million.
Its current profit before interest and taxation (PBIT) is $10 million.
Due to difficult trading conditions, the company expects its total revenue to be constant next year, although some margins will reduce.
It forecasts next year's PBIT will fall to 18% on 40% of its revenue, but that the PBIT on the other 60% of its revenue will be unaffected.
The rate of corporate tax is 20%.
What is the forecast percentage reduction in next year's Earnings?
- A. Reduction of 2.0%
- B. Reduction of 0.8%
- C. Reduction of 4.0%
- D. Reduction of 0%
Answer: C
NEW QUESTION # 189
AA is considering changing its capital structure. The following information is currently relevant to AA:

The gearing rating raising the new debt finance will be 50%.
Which THREE of the following statement about the impact of AA's change in capital structure are true under Modigliani and Miler's capital structure theory with tax.
- A. The cost of debt will increase above 4%
- B. The cost of debt remain unchanged at 4%
- C. The cost of equity will decrease below 10%
- D. The cost of equity will increase above 10%
- E. The WACC increase above 7.6
- F. The WACC will decrease below 7.6%
Answer: E,F
NEW QUESTION # 190
Company AAB is located in country A whose currency is the AS It has a subsidiary, BBA, located m country B that has the BS as its currency AAB has asked BBA to pay BS40 million surplus funds to AAB to assist with a planned new capital investment in country A The exchange rate today is AS1 = BS3
Tax regimes
* Company BBA pays withholding tax of 25% on all cash remitted to the parent company
* Company AAB pays tax of 10% on at cash received from its subsidiary
How much will company AAB have available for investment after receiving the surplus funds from BBA?
- A. A$ 12 million
- B. A$ 27 million
- C. A$ 9 million
- D. A$ 81 million
Answer: C
NEW QUESTION # 191
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