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CIMA Updated F3 Exam Questions and Answers by king

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CIMA F3 Exam Overview :

Exam Name: Financial Strategy
Exam Code: F3 Dumps
Vendor: CIMA Certification: CIMA Strategic level
Questions: 435 Q&A's Shared By: king
Question 128

TTT pic is a listed company. The following information is relevant:

Questions 128

TTT pic's board is considering issuing new 6% irredeemable debt to re-purchase equity. This is expected to change TTT pic's debt to equity mix to 40: 60 by market value. The corporate tax rate is 20%.

What will be TTT pic's WACC following this change in capital structure?

Options:

A.

11.66%

B.

12.67%

C.

13.43%

D.

11.09%

Discussion
Question 129

Which THREE of the following are the most likely exit routes that apply to a venture capitalist?

Options:

A.

Flotation via a stock market listing

B.

Trade sale to another company

C.

Selling back to the original owners

D.

Liquidation of the company

E.

Raising long term debt from the company

Discussion
Question 130

Company AAB is located in country A whose currency is the AS It has a subsidiary, BBA, located m country B that has the BS as its currency AAB has asked BBA to pay BS40 million surplus funds to AAB to assist with a planned new capital investment in country A The exchange rate today is AS1 = BS3

Tax regimes

• Company BBA pays withholding tax of 25% on all cash remitted to the parent company

• Company AAB pays tax of 10% on at cash received from its subsidiary

How much will company AAB have available for investment after receiving the surplus funds from BBA?

Options:

A.

A$ 12 million

B.

A$ 9 million

C.

A$ 81 million

D.

A$ 27 million

Discussion
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