The Board of Directors of a listed company have decided that it needs to increase its equity capital to ensure it is in a more stable financial position.The shareholder profile is a mix of institutional and individual small shareholders.The board is considering either:· A scrip dividend· A zero dividendWhich THREE of the following would be considered disadvantages of a scrip dividend compared to a zero dividend?
Answer(s): A,C,D
A company's current earnings before interest and taxation are $5 million.These are expected to remain constant for the forseeable future.The company has 10 million shares in issue which currently trade at $3.60.It also has a $10 million long term floating rate loan.The current interest rate on this loan is 5%.The company pays tax at 20%.The company expects interest rates to increase next year to 6% and it's Price/Earnings (P/E) ratio to move to 9.5 times by the end of next year.What percentage reduction in the share price will occur by the end of next year if the interest rate increase and the P/E movement both occur?
Answer(s): A
A company financed by equity and debt can be valued by discounting:
A company is deciding whether to offer a scrip dividend or a cash dividend to its shareholders.Although the company has excellent long-term growth prospects, it is experiencing short- term profit and cash flow problems.Which of the following statements is most likely to be a reason for choosing the scrip dividend?
Answer(s): C
Listed company R is in the process of making a cash offer for the equity of unlisted company S.Company R has a market capitalisation of $200 million and a price/earnings ratio of 10.Company S has a market capitalisation of $50 million and earnings of $7 million.Company R intends to offer $60 million and expects to be able to realise synergistic benefits of $20 million by combining the two businesses. This estimate excludes the estimated $8 million cost of integrating the two businesses.Which of the following figures need to be used when calculating the value of the combined entity in $ millions?
Share your comments for CIMA F3 Financial Strategy exam with other users:
wish you would allow more free questions
great simulation
very g inood
q35 should be a
sap c_ts450_2021
nice questions
ecellent materil for unserstanding
good so far
this is way too informative
very helpfull
q.189 - answers are incorrect.
awesome job in getting these questions
i cant find aws certified practitioner clf-c01 exam in aws website but i found aws certified practitioner clf-c02 exam. can everyone please verify the difference between the two clf-c01 and clf-c02? thank you
grazie mille. i got a satisfactory mark in my exam test today because of this exam dumps. sorry for my english.
some of the answers are incorrect. need to be reviewed.
so far so good
i am really liking it
thanks good stuff
need dump c_tadm_23
next time i will write a full review
first time using this site
please sent me oracle 1z0-1105-22 pdf
very helpful
good info about oml
very useful to practice
this website is very helpful.
good content
so challenging
17 should be d ,for morequery its scale out
nice question
yes.
good mateial
good practice exam
impressivre qustion