CIMA CIMAPRA19-F03-1 Free Sample Exam Questions 2026

Here you can get the actual CIMA CIMAPRA19-F03-1 exam questions and answers in PDF for free and for all questions premium file. These best F3 Financial Strategy Exam CIMAPRA19-F03-1 PDF questions are for every CIMA users. Real CIMAPRA19-F03-1 exam dumps that will assist you to crack the %certification% certification exam in the PDF format. For Advance preparation premium PDF files available for perfect exam preparation on reilable price option.

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Page: 1 / 79
Total Questions: 391

Questions & Answers PDF

• Question 1

  

  A company is considering either exporting its product directly to customers in a foreign country or establishing a manufacturing subsidiary in that country.The corporate tax rate in the company'sown country is 20% and 25% tax depreciation allowances are available.Which THREE of the following would be considered advantages of establishing the subsidiary in the foreign country?

  • The corporate tax rate in the foreign country is 40%.
  • There isa double tax treaty between the company's domestic country and the foreign country.
  • Year 1 tax depreciation allowances of 100% are available in the foreign country.
  • There are high customs duties payable on products entering the foreign country.
  • There arerestrictions on companies wishing to remit profit from the foreign country.

  Reveal Answer Answer: B, C, D Next Question

• Question 2

  

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

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

  Reveal Answer Answer: A, B, C Next Question

• Question 3

  

  A company has a cash surplus which it wishes todistributeto shareholders by a share repurchase rather than paying a special dividend.WhichTHREEof the following statementsare correct?

  • The payment of a special dividend could raise shareholders' expectations of similar distributions in the future, unlike a share repurchase.
  • The share repurchase could send a negative signal to shareholders as it could be interpreted as a failure of management to find suitable investment opportunities.
  • Determination of the repurchase price will be easy as shareholders will insist on receiving the open market price.
  • Different tax regimes could result in shareholders having a preference for a share repurchase due to the often more preferential tax treatment of capital gains.
  • The share repurchase, if approved by the shareholders, will be binding on all of the company's shareholders.

  Reveal Answer Answer: A, B, D Next Question

• Question 4

  

  The ex div share price ofa company's shares is $2.20.An investor in the company currently holds 1,000 shares.Thecompany plans to issue a scrip dividend of 1 new share for every 10 shares currently held.After the scrip dividend, what will bethe total wealth of the shareholder?Give your answer to the nearest whole $.$? .

  Reveal Answer Answer: Next Question

• Question 5

  

  A company based inCountry D, whose currency is the D$, has an objective of maintaining an operating profit margin of at least 10% each year.Relevant data:* The companymakes sales to Country E whose currency is the E$. It also makes sales to Country F whose currency is the F$.* All purchases are from Country G whose currency is the G$.* The settlement of all transactions is in the currency of the customer or supplier.Whichof the following changes wouldbe most likely to help the company achieve its objective?

  • The D$ strengthens against the E$ over time.
  • The F$ weakens against the D$ over time.
  • The D$ strengthens against the G$ over time.
  • The D$ weakens against the G$ over time.

  Reveal Answer Answer: C Next Question

• Question 6

  

  Company Z has just completed the all-cash acquisition of Company A.Both companies operate in the advertising industry.The market considered the acquisition a positive strategic move by Company Z.WhichTHREE of the following will the shareholders of Company Z expect the company's directors to prioritise following the acquisition?

  • The realisation of anticipated post-acquisition synergies.
  • The development of a dividend policy to meet the expectations of the target company shareholders.
  • The integration and retention of key employees.
  • The regulatory approval required to complete the acquisition.
  • The retention of key customers of the acquired company.

  Reveal Answer Answer: A, C, E Next Question

• Question 7

  

  A large, quoted company that is all-equity financed is planning to acquire a smaller unquoted company that is also all-equity financed.The acquiring company's directors are using the dividend valuation model to value the target company before making an offer.Relevant data for the target company:* Dividends paid in the last financial year $2 million* Book value of net assets $15 million* Shares in issue 1 millionThe acquiring company's cost of capital is 10%.Its directors believe they can improve the target company's performance in the long term.They estimate there will be no growth in the first year of the acquisition butfrom year 2 onwards there will bea 4% growth each year in perpetuity.What is the maximum price the acquiring company should offer for each of the shares in the target company?

  • $33.33
  • $34.67
  • $32.78
  • $15.00

  Reveal Answer Answer: A Next Question

• Question 8

  

  A company plans to raise $12 millionto finance an expansion project using a rights issue.Relevant data:* Shares will be offered at a 20% discountto the present market price of $15.00 per share.* There are currently 2 million shares in issue.* The project is forecast to yield a positive NPV of $6 million.What is the yield-adjusted Theoretical Ex-Rights Price following the announcement of the rights issue?

  • $16.00
  • $14.00
  • $9.00
  • $11.00

  Reveal Answer Answer: A Next Question

• Question 9

  

  A company needs to raise $20 million to finance a project.It has decided on a rights issue at a discount of 20% to its current market share price.There are currently 20 million shares in issuewith a nominal value of $1 and a marketprice of $5per share.Calculate the terms of the rights issue.

  • 1 new share for every 4 existing shares
  • 1 new share for every 20 existing shares
  • 1 new share for every 5 existing shares
  • 1 new share for every 25 existing shares

  Reveal Answer Answer: A Next Question

• Question 10

  

  A company plans to raise $12 millionto finance an expansion project using a rights issue.Relevant data:* Shares will be offered at a 20% discountto the present market price of $15.00 per share.* There are currently 2 million shares in issue.* The project is forecast to yield a positive NPV of $6 million.What is the yield-adjusted Theoretical Ex-Rights Price following the announcement of the rights issue?

  • $16.00
  • $14.00
  • $9.00
  • $11.00

  Reveal Answer Answer: A Next Question

Page: 1 / 79
Total Questions: 391

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