How to pass the Cima F3 exam in first attempt?

1. CIMA F3 - Financial Strategy exam in just 24HOURS! 100% REAL EXAM QUESTIONSANSWERS CIMA F3 - FinancialStrategy Buy Complete Questions Answers Filefrom http://www.certs4you.com/cima/f3-dumps.html 100% Exam Passing Guarantee & Money BackAssurance SampleQuestions

2. Question No1: • Which THREE of the following remain unchanged over the life of a 10 year fixed ratebond? • The couponrate • Theyield • The marketvalue • The nominalvalue • The amount payable onmaturity • Answer: A, D, E Question No2: • Companies A, B, C andD: • Are based in a country that uses the K$ as itscurrency. • Have an objective to grow operating profit year onyear. • Have the same total levels of revenue andcost. • Trade with companies or individuals in the eurozone. All import and export trade with companies or individuals in the eurozone is priced inEUR. • Typical import/export trade for each company in a year are asfollows: • Which company's growth objective is most sensitive to a movement in the EUR/K$ exchange rate? • CompanyA • CompanyB • CompanyC • CompanyD • Answer: B Question No3: • A company currently has a 6.25% fixed rate loan but it wishes to change the interest style of the loan to variable by using an interest rate swap directly with thebank. • The bank has quoted the following swaprate: • 5.50% - 5.55% in exchange for LIBOR LIBOR is currently5%. • If the company enters into the swap and LIBOR remains at 5%, what will the company's interest costbe?

3. A. 5.00% B. 5.75% C. 5.70% D. 6.25% Answer: B Question No4: A private company manufactures goods for export, the goods are priced in foreign currency B$. The company is partly owned by members of the founding family and partly by a venture capitalist who is helping to grow the business rapidly in preparation for a planned listing in three years' time. The company therefore has significant long term exposure to the B$. This exposure is hedged up to 24 months into the future based on highly probable forecast future revenue streams. The company does not apply hedge accounting and this has led to high volatility in reported earnings. Which of the following best explains why external consultants have recently advised the company to apply hedgeaccounting? To provide a more appropriate earnings figure for use in calculating the annualdividend. To make it easier for the market to value the business when it is listed on the Stock Exchange. To ensure that the venture capitalist receives regular annual returns on itsinvestment. To fully adopt IFRS in preparation for listing thecompany. Answer: B Question No5: A company is currently all-equity financed. The directors are planning to raise long term debt to finance a new project. The debt:equity ratio after the bond issue would be 30:60 based on estimated market values. According to Modigliani and Miller's Theory of Capital Structure without tax, the company's cost of equitywould: Stay thesame. Decrease. Increase. Increase or decrease depending on the bond's couponrate. Answer:C

4. Question No6: • 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 beforeuse? • The relative lack of marketability of unlisted companyshares. • A lower level of scrutiny and regulation for unlistedcompanies. • Unlisted companies being generally smaller and lessestablished. • Control premium not being included within the proxy p/e ratioused. • The forecast earnings growth being relatively higher in the unlistedcompany. • A profit item within the unlisted company's latest earnings which will notreoccur. • Answer: A, B,C Question No7: • A company's Board of Directors wishes to determine a range of values for itsequity. • The following information is available: Estimated net asset values (total asset less total liabilities includingborrowings): • Net book value = $20million • Net realisable value = $25million • Free cash flows to equity = $3.5 million each year indefinitely,post-tax. • Cost of equity =10% • Weighted Average Cost of Capital =7% • Advise the Board on reasonable minimum and maximum values for theequity. • Minimum value = $25.0 million, and maximum value = $35.0million • Minimum value = $25.0 million, and maximum value = $50.0million • Minimum value = $20.0 million, and maximum value = $35.0 million • Minimum value = $20.0 million, and maximum value = $50.0million • Answer: A Question No8: • A consultancy company is dependent for profits and growth on the high value individuals it employs. The company has relatively few tangible assets. Select the most appropriate reason for the net asset valuation method being considered unsuitable for such acompany. • It does not account for the intangibleassets. • It accounts for the intangible assets at historicalvalue. • It accounts for intangible assets at net realisablevalue.

5. D. It does not account for tangibleassets. Answer: A Question No9: Company Z has identified four potential acquisition targets: companies A, B, C and D. Company Z has a current equity market value of $580 million. The price it would have to pay for the equity of each company is as follows: Only one of the target companies can be acquired and the consideration will be paid in cash. The following estimations of the new combined value of Company Z have been prepared for each acquisition before deduction of the cash consideration: Ignoring any premium paid on acquisition, which acquisition should the directorspursue? A B C D Answer: C Question No10: A profit-seeking company intends to acquire another company for a variety of reasons, primarily to enhance shareholder wealth. Which THREE of the following offer the greatest potential for enhancing shareholderwealth? Achieving more press coverage for thecompany. Creating new opportunities foremployees. Achieving greater culturaldiversity. Acquiring Intellectual Propertyassets. Exploiting productionsynergies. Elimination of existingcompetition. Answer: D, E,F Buy Complete Questions Answers Filefrom 100% Exam Passing Guarantee & Money BackAssurance

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