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CIMA F3 Exam With Confidence Using Practice Dumps

Exam Code:
F3
Exam Name:
Financial Strategy
Certification:
CIMA Strategic
Vendor:
CIMA
Questions:
435
Last Updated:
Dec 10, 2025
Exam Status:
Stable
CIMA F3

F3: CIMA Strategic Exam 2025 Study Guide Pdf and Test Engine

Are you worried about passing the CIMA F3 (Financial Strategy) exam? Download the most recent CIMA F3 braindumps with answers that are 100% real. After downloading the CIMA F3 exam dumps training , you can receive 99 days of free updates, making this website one of the best options to save additional money. In order to help you prepare for the CIMA F3 exam questions and verified answers by IT certified experts, CertsTopics has put together a complete collection of dumps questions and answers. To help you prepare and pass the CIMA F3 exam on your first attempt, we have compiled actual exam questions and their answers. 

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Financial Strategy Questions and Answers

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Question 1

Company A is planning to acquire Company B. Both companies are listed and are of similar size based on market capitalisation No approach has yet been made to Company B's shareholders as the directors of Company A are undecided about the most suitable method of financing the offer Two methods are under consideration a share exchange or a cash offer financed by debt.

Company A currently has a gearing ratio (debt to debt plus equity) of 30% based on market values. The average gearing ratio (debt to debt plus equity) for the industry is 50% Although no formal offer has been made there have been market rumours of the proposed bid. which is seen as favorable to Company A. As a consequence. Company As share price has risen over the past few weeks while Company B's share price has fallen.

Which THREE of the following statements are most likely to be correct?

Options:

A.

Based on current share price movements, a share exchange would mean Company A has to issue fewer shares to acquire Company B than it would have done a few weeks ago

B.

Company B's shareholders will be able to participate in the future growth of the combined business if it is a share exchange

C.

The method of finance chosen will not affect the post-acquisition earning per share of the combined business

D.

Company A's weighted average cost of capital will fall if financing is with debt

E.

Company A's gearing will increase following a share exchange.

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Question 2

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?

Options:

A.

Not recognised in 20X3 as the forward contract is not settled until after the year end.

B.

Not recognised in 20X3 as the gain will be offset by a loss on the hedged transaction.

C.

A $10,000 profit will be recognised within the Income Statement.

D.

A $10,000 profit will be recognised within other comprehensive income.

Question 3

JAG and ZEB are two listed companies. JAG is approximately 20 times the size of ZEB.

10 days ago JAG made a hostile bid for ZEB. offering a share exchange.

The bid price represents a 10% profit to the shareholders of ZEB at today's market prices to reflect the high levels of synergistic benefits that JAG expects to realise from the transaction.

Which of the following is the greatest future threat to the post-transaction value for JAG?

Options:

A.

Forecast synergistic benefits are not realised.

B.

New shareholders acquired from ZEB demand a higher dividend payout than JAG is used to.

C.

Negative market response to the bid.

D.

New shareholders acquired from ZEB withdraw their investment by selling their shares within 12 months.

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