BTW, DOWNLOAD part of ITExamSimulator CIMAPRA19-F03-1 dumps from Cloud Storage: https://drive.google.com/open?id=1XYvqYYBYUStfM1aRJlDQG83BWAn7g9-v
now our CIMAPRA19-F03-1 training materials have become the most popular CIMAPRA19-F03-1 practice materials in the international market. There are so many advantages of our study materials, and will show you some of them for your reference. First and foremost, our company has prepared CIMAPRA19-F03-1 free demo in this website for our customers. Second, it is convenient for you to read and make notes with our PDF version. So let our CIMAPRA19-F03-1 practice materials to be your learning partner in the course of preparing for the CIMAPRA19-F03-1 exam, especially the PDF version is really a wise choice for you.
| Section | Objectives |
|---|---|
| Topic 1: Financial Risk Management | - Interest rate risk - Foreign exchange risk |
| Topic 2: Financial Strategy Formulation | - Strategic financial objectives - Corporate financial planning |
| Topic 3: Dividend Policy | - Dividend decisions and shareholder value - Dividend theories |
| Topic 4: Mergers, Acquisitions and Corporate Restructuring | - Valuation principles - Synergies and takeover strategies |
| Topic 5: Sources of Long-Term Finance | - Hybrid financial instruments - Equity and debt financing |
>> CIMAPRA19-F03-1 Free Practice <<
The CIMAPRA19-F03-1 certificate is one of the popular CIMA certificates. Success in the CIMA CIMAPRA19-F03-1 credential examination enables you to advance your career at a rapid pace. You become eligible for many high-paying jobs with the Network Security Specialist CIMAPRA19-F03-1 certification. To pass the CIMA CIMAPRA19-F03-1 test on your first sitting, you must choose reliable Network Security Specialist CIMAPRA19-F03-1 exam study material. Don't worry about CIMAPRA19-F03-1 test preparation, because ITExamSimulator is offering CIMAPRA19-F03-1 actual exam questions at an affordable price.
NEW QUESTION # 380
Providers of debt finance often insist on covenants being entered into when providing debt finance for companies.
Agreement and adherence to the specific covenants is often a condition of the loan provided by the lender.
Which THREE of the following statements are true in respect of covenants?
Answer: B,D,E
Explanation:
Discursive_F0
NEW QUESTION # 381
Z wishes to borrow at a floating rate and has been told that it can use swaps to reduce the effective interest rate it pays. Z can borrow floating at Libor ' 1, and fixed at 10%.
Which of the following companies would be the most appropriate for Z to enter into a swap with?
Answer: D
NEW QUESTION # 382
The International Integrated Reporting Council (IIRC) was formed in August 2010 and brings together a cross-section of representatives from a wide variety of business sectors.
The primary purpose of the IIRC's framework is to help enable an organsation to communicate how it:
Answer: D
NEW QUESTION # 383
The Board of Directors of a listed company wish to estimate a reasonable valuation of the entire share capital of the company in the event of a takeover bid.
The company's current profit before taxation is $10 0 million.
The rate of corporate tax is 20%.
The average P/E multiple of listed companies in the same industry is 10 times current earnings.
The P/E multiple of recent takeovers in the same industry have ranged from 11 times to 12 times current earnings.
The average P/E multiple of the top 100 companies on the stock market is 16 times current earnings.
Advise the Board of Directors which of the following is a reasonable estimate of a range of values of the entire share capital in the event of a bid being made for the whole company?
Answer: C
Explanation:
Profit before tax = $10m (the "10 0" in the text).
Tax @ 20% # earnings after tax = 10 × (1 # 0.20) = $8m.
For a takeover, it's appropriate to use the takeover P/E range in the same industry: 11-12 times.
Value range = 8 × 11 to 8 × 12 = $88m to $96m.
NEW QUESTION # 384
A company has a covenant on its 5% long term corporate bond.
* Covenant - The earnings must not fall below $7 million
The bond has a nominal value of $60 million.
It is currently trading at 80% of its nominal value.
The projected earnings before interest and taxation for next year are $11.5 million.
The company retains 80% of its earnings. It pays tax at 20%.
Advise the Board of Directors which of the following covenant conditions will apply next year?
Answer: A
Explanation:
Explanation with calculations:
Bond nominal value = $60m
Coupon = 5% # Interest = 0.05 × 60 = $3m
Projected EBIT = $11.5m
Profit before tax (PBT)
PBT=EBIT#Interest=11.5#3=8.5 million\text{PBT} = \text{EBIT} - \text{Interest} = 11.5 - 3 = 8.5\ \text
{million}PBT=EBIT#Interest=11.5#3=8.5 million
Tax (20%)
Tax=0.20×8.5=1.7 million\text{Tax} = 0.20 \times 8.5 = 1.7\ \text{million}Tax=0.20×8.5=1.7 million Earnings after tax (profit for the year) Earnings=8.5#1.7=6.8 million\text{Earnings} = 8.5 - 1.7 = 6.8\ \text{million}Earnings=8.5#1.7=6.8 million The covenant states that earnings must not fall below $7m. On the standard CIMA F3 treatment, "earnings" in such a covenant is interpreted as profit after interest and tax, i.e. the $6.8m we've just calculated.
6.8 million<7 million6.8\ \text{million} < 7\ \text{million}6.8 million<7 million So the covenant will be breached.
The retention rate (80%) and bond market price (80% of nominal) are red herrings for the covenant calculation.
Therefore the correct option is:
C). The earnings will be = $6.80 million (The covenant will be breached).
NEW QUESTION # 385
......
In order to reflect our sincerity on consumers and the trust of more consumers, we provide a 100% pass rate guarantee for all customers who have purchased CIMAPRA19-F03-1 study quiz. If you fail to pass the exam after you purchased CIMAPRA19-F03-1 preparation questions, you only need to provide your transcript to us, and then you can receive a full refund. Or we can free exchange two other exam materials for you if you have other exams to attend at the same time. So just buy our CIMAPRA19-F03-1 Exam Questions!
Exam CIMAPRA19-F03-1 Questions Pdf: https://www.itexamsimulator.com/CIMAPRA19-F03-1-brain-dumps.html
BONUS!!! Download part of ITExamSimulator CIMAPRA19-F03-1 dumps for free: https://drive.google.com/open?id=1XYvqYYBYUStfM1aRJlDQG83BWAn7g9-v