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[General] Valid CIMAPRA19-F03-1 Test Guide & High CIMAPRA19-F03-1 Quality

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【General】 Valid CIMAPRA19-F03-1 Test Guide & High CIMAPRA19-F03-1 Quality

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CIMAPRA19-F03-1 exam is a part of the Chartered Institute of Management Accountants (CIMA) professional certification program, which is recognized globally as a mark of excellence in the field of management accounting. Candidates who pass the CIMAPRA19-F03-1 exam demonstrate their proficiency in financial strategy and are equipped with the skills and knowledge necessary to advance their careers in finance and accounting. CIMAPRA19-F03-1 exam is challenging and requires significant preparation, but the benefits of achieving the certification are substantial and can help candidates stand out in a competitive job market.
The F3 Financial Strategy exam covers a wide range of topics related to financial management, including capital investment appraisal, business valuation, risk management, and financial instruments. CIMAPRA19-F03-1 Exam is divided into two sections: Section A and Section B. Section A consists of objective test questions, while Section B involves case study-style questions that require candidates to apply their knowledge and skills to real-life scenarios.
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CIMA F3 (F3 Financial Strategy) is a certification exam that is designed for finance professionals who wish to develop their skills in financial management and strategy. CIMAPRA19-F03-1 Exam is part of the CIMA Professional Qualification, which is internationally recognized and respected by employers worldwide. The CIMA F3 exam tests candidates on their ability to analyze financial information and provide strategic recommendations to improve business performance.
CIMA F3 Financial Strategy Sample Questions (Q218-Q223):NEW QUESTION # 218
Company A is subject to a takeover bid from Company B, both companies operate in the same industry and each of them demand a significant market share Company B h3S made an of an of $5 per share to the shareholders of Company A.
The directors of Company A do not believe the takeover would be in the best interests of the stakeholders and other stakeholders of Company A due to the following reruns
1. Company B has recently taken ever several ether companies resulting in them breaking up the company and se ling on the assets.
2 The directors of Company A believe the offer of $5 per snare undervalues tie company
The directors of Company A are therefore keen to prevent the bid from going ahead
Which THREE of the following defence strategies could be used by the directors of Company Air this situation?
  • A. Inform shareholders of the potential current value of the non-current assets including intangibles, to show that their true value is higher than the bid value.
  • B. Offer the company to an alternative While Knight bidder.
  • C. Refer the bid to the Competition Authorizes because of the risk of a large number of employee redundancies if Company B's Did were to be successful
  • D. Give existing shareholders the right to buy bonds in the future.
  • E. Appeal to their own shareholders that the company should not be broken up because i: has strong growth prospects.
Answer: B,C,E

NEW QUESTION # 219
A company has:
* $7 million market value of equity
* $5 million market value of debt
* WACC of 9.375%
* Corporate income tax rate of 15%
According to Modigliani and Miller's theory of capital structure with tax, what is the ungeared cost of equity?
  • A. 14.52%
  • B. 10.27%
  • C. 8.79%
  • D. 10.00%
Answer: D

NEW QUESTION # 220
A listed company plans to raise new capital which will be required for future investment projects. The company has a gearing ratio of 50%, which is just below the company's target ratio.
The directors are comparing the benefits and drawbacks of each of the following two alternative sources of finance;
* Unsecured bank borrowings.
* Convertible bonds.
Which of the following statements is correct?
  • A. If the share price does not increase sufficiently for conversion to take place the company will have more expensive debt with a convertible bond than with unsecured borrowings.
  • B. Additional finance will be raised upon conversion of the convertible bond but not with unsecured borrowings.
  • C. If the convertible bond holders eventually convert to shares the company's gearing ratio will rise whereas it will be unaffected if finance is with unsecured borrowings.
  • D. The coupon rate of a convertible bond is likely to be lower than for unsecured borrowings.
Answer: B

NEW QUESTION # 221
A company s about to announce a new project that has a positive NPV.
If the market is semi-strong form efficient, which of the following statements is most Likely to be true?
The value of the company will.
  • A. Increase by the NPV of the project once the information has been announced
  • B. only change to incorporate historical information.
  • C. already include the value of the project.
  • D. increase only on completion of the project.
Answer: A

NEW QUESTION # 222
An unlisted software development business is to be sold by its founders to a private equity house following the initial development of the software. The business has not yet made a profit but significant profits are expected for the next three years with only negligible profits thereafter. The business owns the freehold of the property from which it operates. However, it is the industry norm to lease property.
Which THREE of the following are limitations to the validity of using the Calculated Intangible Value (CIV) method for this business?
  • A. The intellectual property representing the software development has not been included in the accounts.
  • B. Significant profits are forecast for the next three years with only negligible profits thereafter.
  • C. The business owns the freehold property from which it operates.
  • D. The business has not yet made a profit.
  • E. The CIV method cannot be applied to an unlisted company.
Answer: A,C,D

NEW QUESTION # 223
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