CIMA F3 Financial Strategy F3 Dumps in PDF

Free CIMA F3 Real Questions (page: 1)

A listed company is planning to raise $21.6 million to finance a new project with a positive net present value of $5 million.  The finance is to be raised via a rights issue at a 10% discount to the current share price.  There are currently 100 million shares in issue, trading at $2.00 each.
Taking the new project into account,  what would the theoretical ex-rights price be?
Give your answer to two decimal places.  

  1. 2.02, 2.03
  2. 2.02, 1.03

Answer(s): A



Company A is planning to acquire Company B.
Company A's managers think they can improve the performance of Company B to the extent that its own P/E ratio should be applied to Company B's earnings.
Relevant Data:

What is the expected synergy if the acquisition goes ahead? 
Give your answer to the nearest $ million.

  1. 8, 8000000
  2. 7, 8000000

Answer(s): A



Which THREE of the following remain unchanged over the life of a 10 year fixed rate bond?

  1. The coupon rate
  2. The yield
  3. The market value
  4. The nominal value
  5. The amount payable on maturity

Answer(s): A,D,E



On 31 October 20X3:   
* A company expected to agree a foreign currency transaction in January 20X4 for settlement on 31 March 20X4.
* The company hedged the currency risk using a forward contract at nil cost for settlement on 31 March 20X4.   
* The transaction was correctly treated as a cash flow hedge in accordance with IAS 39 Financial Instruments: Recognition and Measurement. On 31 December 20X3, the financial year end, the fair value of the forward contract was $10,000 (asset).
How should the increase in the fair value of the forward contract be treated within the financial statements for the year ended 31 December 20X3?

  1. Not recognised in 20X3 as the forward contract is not settled until after the year end.
  2. Not recognised in 20X3 as the gain will be offset by a loss on the hedged transaction.
  3. A $10,000 profit will be recognised within the Income Statement.
  4. A $10,000 profit will be recognised within other comprehensive income.

Answer(s): D



A company is funded by:   
* $40 million of debt (market value)   
* $60 million of equity (market value) The company plans to:   
* Issue a bond and use the funds raised to buy back shares at their current market value.   
* Structure the deal so that the market value of debt becomes equal to the market value of equity.
According to Modigliani and Miller's theory with tax and assuming a corporate income tax rate of 20%, this plan would: 

  1. increase the company's asset beta.
  2. decrease the company's equity beta.
  3. increase shareholder wealth.
  4. increase the market value of the company's equity.

Answer(s): C



A company has 6 million shares in issue. Each share has a market value of $4.00. $9 million is to be raised using a rights issue. Two directors disagree on the discount to be offered when the new shares are issued.   
* Director A proposes a discount of 25%    
* Director B proposes a discount of 30%
Which THREE of the following statements are most likely to be correct?

  1. The theoretical ex-rights price will be higher under Director B's proposal than under Director A's proposal.
  2. More shares will be issued under Director B's proposal than under Director A's proposal.
  3. The rights issue price will be $3.00 under Director A's proposal.
  4. The terms of the rights issue will be one new share for every two existing shares under Director A's proposal.
  5. Shareholder wealth will be higher under Director A's proposal than under Director B's proposal.

Answer(s): B,C,D



A wholly equity financed company has the following objectives:
1. Increase in profit before interest and tax by at least 10% per year.
2. Maintain a dividend payout ratio of 40% of earnings per year.
Relevant data:   
* There are 2 million shares in issue.   
* Profit before interest and tax in the last financial year was $5 million.   
* The corporate income tax rate is 30%. At the beginning of the current financial year, the company raised long term debt of $2 million at 10% interest each year. 
Calculate the dividend per share that will be announced this year assuming the company achieves its objective of increasing profit before interest and tax by 10%.

  1. $0.74
  2. $0.67
  3. $1.11
  4. $1.01

Answer(s): A



When valuing an unlisted company, a P/E ratio for a similar listed company may be used but adjustments to the P/E ratio may be necessary.
Which THREE of the following factors would justify a reduction in the proxy p/e ratio before use? 

  1. The relative lack of marketability of unlisted company shares.
  2. A lower level of scrutiny and regulation for unlisted companies.
  3. Unlisted companies being generally smaller and less established.
  4. Control premium not being included within the proxy p/e ratio used.
  5. The forecast earnings growth being relatively higher in the unlisted company.
  6. A profit item within the unlisted company's latest earnings which will not reoccur.

Answer(s): A,B,C



Share your comments for CIMA F3 exam with other users:

K
Katiso Lehasa
9/15/2025 11:21:52 PM

Thanks for the practice questions they helped me a lot.

E
Einstein
9/2/2025 7:42:00 PM

Passed this exam today. All questions are valid and this is not something you can find in ChatGPT.

V
vito
8/22/2025 4:16:51 AM

i need to pass exam for VMware 2V0-11.25

M
Matt
7/31/2025 11:44:40 PM

Great questions.

O
OLERATO
7/1/2025 5:44:14 AM

great dumps to practice for the exam

A
Adekunle willaims
6/9/2025 7:37:29 AM

How reliable and relevant are these questions?? also i can see the last update here was January and definitely new questions would have emerged.

A
Alex
5/24/2025 12:54:15 AM

Can I trust to this source?

S
SPriyak
3/17/2025 11:08:37 AM

can you please provide the CBDA latest test preparation

C
Chandra
11/28/2024 7:17:38 AM

This is the best and only way of passing this exam as it is extremely hard. Good questions and valid dump.

S
Sunak
1/25/2025 9:17:57 AM

Can I use this dumps when I am taking the exam? I mean does somebody look what tabs or windows I have opened ?

F
Frank
2/15/2024 11:36:57 AM

Finally got a change to write this exam and pass it! Valid and accurate!

A
Anonymous User
2/2/2024 6:42:12 PM

Upload this exam please!

N
Nicholas
2/2/2024 6:17:08 PM

Thank you for providing these questions. It helped me a lot with passing my exam.

T
Timi
8/19/2023 5:30:00 PM

my first attempt

B
Blessious Phiri
8/13/2023 10:32:00 AM

very explainable

M
m7md ibrahim
5/26/2023 6:21:00 PM

i think answer of q 462 is variance analysis

T
Tehu
5/25/2023 12:25:00 PM

hi i need see questions

A
Ashfaq Nasir
1/17/2024 1:19:00 AM

best study material for exam

R
Roberto
11/27/2023 12:33:00 AM

very interesting repository

N
Nale
9/18/2023 1:51:00 PM

american history 1

T
Tanvi
9/27/2023 4:02:00 AM

good level of questions

B
Boopathy
8/17/2023 1:03:00 AM

i need this dump kindly upload it

S
s_123
8/12/2023 4:28:00 PM

do we need c# coding to be az204 certified

B
Blessious Phiri
8/15/2023 3:38:00 PM

excellent topics covered

M
Manasa
12/5/2023 3:15:00 AM

are these really financial cloud questions and answers, seems these are basic admin question and answers

N
Not Robot
5/14/2023 5:33:00 PM

are these comments real

K
kriah
9/4/2023 10:44:00 PM

please upload the latest dumps

E
ed
12/17/2023 1:41:00 PM

a company runs its workloads on premises. the company wants to forecast the cost of running a large application on aws. which aws service or tool can the company use to obtain this information? pricing calculator ... the aws pricing calculator is primarily used for estimating future costs

M
Muru
12/29/2023 10:23:00 AM

looks interesting

T
Tech Lady
10/17/2023 12:36:00 PM

thanks! that’s amazing

M
Mike
8/20/2023 5:12:00 PM

the exam dumps are helping me get a solid foundation on the practical techniques and practices needed to be successful in the auditing world.

N
Nobody
9/18/2023 6:35:00 PM

q 14 should be dmz sever1 and notepad.exe why does note pad have a 443 connection

M
Muhammad Rawish Siddiqui
12/4/2023 12:17:00 PM

question # 108, correct answers are business growth and risk reduction.

E
Emmah
7/29/2023 9:59:00 AM

are these valid chfi questions

AI Tutor 👋 I’m here to help!