Month End Sale 70% Discount Offer - Ends in 0d 00h 00m 00s - Coupon code: save70

CIMA F3 Exam With Confidence Using Practice Dumps

Exam Code:
F3
Exam Name:
Financial Strategy
Certification:
Vendor:
Questions:
435
Last Updated:
Apr 26, 2025
Exam Status:
Stable
CIMA F3

F3: CIMA Strategic level 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. 

Our (Financial Strategy) Study Materials are designed to meet the needs of thousands of candidates globally. A free sample of the CompTIA F3 test is available at CertsTopics. Before purchasing it, you can also see the CIMA F3 practice exam demo.

Financial Strategy Questions and Answers

Question 1

Which THREE of the following methods of business valuation would give a valuation of the equity of an entity, rather than the value of the whole entity?

Options:

A.

Expected dividend in one year's time / (cost of equity - growth rate).

B.

Total earnings x appropriate price-earnings ratio.

C.

Forecast future cash flows to all Investors, discounted at the weighted average cost of capital.

D.

Forecast future cash flows to equity, discounted at the cost of equity.

E.

Non-current assets, plus current assets, minus current liabilities

Buy Now
Question 2

The two founding directors of an unlisted geared company want to establish its value as they are intending to approach a venture capitalist for additional funding.

The funding will be used to invest in a major new project which has very high growth potential. The directors intend to sell 10% of the company to the venture capitalist They have prepared the following current valuation of the company using the divided valuation model:

The following information is relevant.

• $60,000 is the most recent dividend paid.

• 4% is the average dividend growth over the last few years.

• 10% is an estimate of the company's cost of equity using the CAPM model with the industry average asset beta

Which THREE of the following are weaknesses of the valuation method used in these circumstances?

Options:

A.

The industry average asset beta is not an appropriate beta to use in CAPM in this case.

B.

The company is unlikely to achieve constant growth in dividends year-on-year.

C.

Future dividend growth is unlikely to reflect historical dividend growth.

D.

It is not an appropriate valuation method for a small, 10% equity stake

E.

CAPM cannot be used to estimate the cost of equity of an unlisted company.

Question 3

A listed company is financed by debt and equity.

If it increases the proportion of debt in its capital structure it would be in danger of breaching a debt covenant imposed by one of its lenders.

 

The following data is relevant:

  

 

The company now requires $800 million additional funding for a major expansion programme. 

 

Which of the following is the most appropriate as a source of finance for this expansion programme?

Options:

A.

Retained earnings

B.

Private placement of a bond

C.

Rights issue

D.

Bank overdraft