BTW, DOWNLOAD part of FreeCram F3 dumps from Cloud Storage: https://drive.google.com/open?id=1eCBbjQpzl6Am1IrMa-gv3FGIYYXvamOc
For the F3 Financial Strategy (F3) web-based practice exam no special software installation is required. Because it is a browser-based F3 Financial Strategy (F3) practice test. The web-based F3 Financial Strategy (F3) practice exam works on all operating systems like Mac, Linux, iOS, Android, and Windows.
| Section | Weight | Objectives |
|---|---|---|
| Sources of Long-Term Funds | 25% | - Capital Structure and Dividend Policy
|
| Business Valuation | 40% | - Mergers and Acquisitions
|
| Financial Risks | 20% | - Currency Risk Management
|
| Financial Policy Decisions | 15% | - Strategic Financial Objectives
|
>> F3 Exam Questions Answers <<
With the CIMA F3 certification exam you can do your job nicely and quickly. You should keep in mind that the CIMA F3 certification exam is a valuable credential and will play an important role in your career advancement. With the right CIMA F3 Exam Preparation, commitment and dedication you can make this challenge easy and quick.
NEW QUESTION # 192
A company has identified potential profitable investments that would require a total of S50 million capital expenditure over the next two years The following information is relevant.
* The company has 100 million shares in issue and has a market capitalisation of S500 million
* It has a target debt to equity ratio of 40% based on market values This ratio is currently 30%
* Earnings for the current year are expected to be S1 00 million
* Its last dividend payment was $1 per share One of the company's objectives is to increase dividends by at least 10% each year
* The company has no cash reserves
Which of the following is the most suitable method of financing to meet the company's requirements?
Answer: A
Explanation:
Given:
Shares: 100m; market cap = $500m # share price = $5.
Target debt-to-equity = 40%; currently 30%.
Equity (market) = 500m
Current debt = 0.30 × 500 = $150m
Target debt = 0.40 × 500 = $200m
# Extra debt capacity = $50m.
Current earnings = $100m.
Last dividend = $1 per share # $100m total.
Objective: increase dividends by at least 10% each year.
No cash reserves.
Options:
A). Share repurchase instead of dividend - violates objective to increase dividends.
B). Increase debt to meet target D/E - raises $50m (exactly what's needed) and keeps dividend policy intact # Best fit.
C). Cut dividend to $0.50 - directly contradicts dividend growth objective.
D). Hold dividend at $1 for two years - no 10% annual increase, also violates objective.
NEW QUESTION # 193
PPA owns $500,000 of shares in Company ABB.
Company ABB has a daily volatility of 2% of its share price Calculate the 12-day value at risk that shows the most PPA can expect to lose during a 12-day period (PPA wishes to be 90% certain that the actual loss in any month will be less than your predicted figure)
Give your answer to the nearest thousand dollars.
Answer:
Explanation:
Pending
NEW QUESTION # 194
XCV can borrow at either 9.5% fixed or the risk-free rate plus 1.3%.
XCV wishes to borrow at a variable rate and thinks that a swap may enable it to do so cheaply BNM can borrow the same principal sum as XCV It can borrow at 10 5% fixed or the risk-free rate plus 2 1 % BNM wishes to raise fixed rate debt XCV and BNM have agreed to use an interest rate swap They will share any savings equally Calculate the effective swap rate that will be paid by XCV.
Give your answer to one decimal place.
Answer:
Explanation:
Risk-free
rate + 1.2%XCV should borrow where it has the comparative advantage (fixed) and then swap:XCV:
Fixed: 9.5%Floating: rf + 1.3%BNM:Fixed: 10.5%Floating: rf + 2.1%XCV is better by 1.0% in fixed and
0.8% in floating, so the total potential gain from a swap:1.0%#0.8%=0.2%1.0\% - 0.8\% = 0.2\%1.0%#0.8%
=0.2% They share this equally # each gets 0.1% benefit.XCV wants floating, so its effective rate should be:
rf+1.3%#0.1%=rf+1.2%\text{rf} + 1.3\% - 0.1\% = \text{rf} + 1.2\%rf+1.3%#0.1%=rf+1.2%
NEW QUESTION # 195
Company A has a cash surplus.
The discount rate used for a typical project is the company's weighted average cost of capital of 10%.
No investment projects will be available for at least 2 years.
Which of the following is currently most likely to increase shareholder wealth in respect of the surplus cash?
Answer: A
Explanation:
Calc_Set4
NEW QUESTION # 196
An all equity financed company plans an issue of new ordinary shares to the general public to raise finance for a new project
The following data applies:
* 10 million ordinary shares are currently in issue with a market value of S3 each share
* The new project will cost S2.88 million and is expected to give a positive NPV of S1 million
* The issue will be priced at a AaA discount to the current share price.
What gam or loss per share will accrue to the existing shareholders?
Answer: B
NEW QUESTION # 197
......
For busy candidates who want to study for the F3 Financial Strategy exam on the go via their smartphones, laptops, or tablets, our updated CIMA F3 PDF Questions are excellent. Because the PDF file of the latest questions is portable, you can prepare for the F3 Exam via a smart device whenever and wherever you like. Additionally, exam PDF questions are printable. You can print these F3 exam questions to study when you don't have access to a smart device.
F3 Reliable Learning Materials: https://www.freecram.com/CIMA-certification/F3-exam-dumps.html
What's more, part of that FreeCram F3 dumps now are free: https://drive.google.com/open?id=1eCBbjQpzl6Am1IrMa-gv3FGIYYXvamOc