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CIMA F3 Exam With Confidence Using Practice Dumps

Exam Code:
F3
Exam Name:
Financial Strategy
Certification:
Vendor:
Questions:
393
Last Updated:
Apr 2, 2026
Exam Status:
Stable
CIMA F3

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

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Financial Strategy Questions and Answers

Question 1

Company A has just announced a takeover bid for Company B. The two companies are large companies in the same industry_ The bid is considered to be hostile.

Company B's Board of Directors intends to try to prevent the takeover as they do not consider it to be in the best interests of shareholders

Which THREE of the following are considered to be legitimate post-offer defences?

Options:

A.

Have all the assets independently professionally revalued to demonstrate that the offer undervalues the company

B.

Alter the memorandum and articles of association to state that a minimum of 75% of shareholders must agree to the bid before it can proceed

C.

Make a counter bid for Company A provided such an acquisition could enhance Company B's shareholder wealth

D.

Publish very optimistic financial forecasts for Company B even though the Board of Directors realises that these are highly unlikely to be achievable

E.

Refer the bid to the competition authorities to try to have the bid prohibited on competition grounds

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Question 2

Company Z has identified four potential acquisition targets: companies A, B, C and D.

Company Z has a current equity market value of $590 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 directors pursue?

Options:

A.

A

B.

B

C.

C

D.

D

Question 3

The Board of Directors of a listed company wish to estimate a reasonable valuation of the entire share capital of the company in the event of a takeover bid.

The company's current profit before taxation is $10 0 million.

The rate of corporate tax is 20%.

The average P/E multiple of listed companies in the same industry is 10 times current earnings.

The P/E multiple of recent takeovers in the same industry have ranged from 11 times to 12 times current earnings.

The average P/E multiple of the top 100 companies on the stock market is 16 times current earnings.

Advise the Board of Directors which of the following is a reasonable estimate of a range of values of the entire share capital in the event of a bid being made for the whole company?

Options:

A.

Minimum = $110 million, and maximum = $120 million.

B.

Minimum = $88 million, and maximum = $96 million.

C.

Minimum = S100 million, and maximum = $120 million.

D.

Minimum = S80 million, and maximum = $128 million.