Financial Strategy
Last Update Dec 22, 2024
Total Questions : 435
To help you prepare for the F3 CIMA exam, we are offering free F3 CIMA exam questions. All you need to do is sign up, provide your details, and prepare with the free F3 practice questions. Once you have done that, you will have access to the entire pool of Financial Strategy F3 test questions which will help you better prepare for the exam. Additionally, you can also find a range of Financial Strategy resources online to help you better understand the topics covered on the exam, such as Financial Strategy F3 video tutorials, blogs, study guides, and more. Additionally, you can also practice with realistic CIMA F3 exam simulations and get feedback on your progress. Finally, you can also share your progress with friends and family and get encouragement and support from them.
A company proposes to value itself based on the net present value of estimated future cash flows.
Relevant data:
• The cash flow for the next three years is expected to be £100 million each year
• The cash flow after year 3 will grow at 2% to perpetuity
• The cost of capital is 12%
The value of the company to the nearest $ million is:
A listed company follows a policy of paying a constant dividend. The following information is available:
• Issued share capital (nominal value $0.50) $60 million
• Current market capitalisation $480 million
The shareholders are requesting an increased dividend this year as earnings have been growing. However, the directors wish to retain as much cash as possible to fund new investments. They therefore plan to announce a 1-for-10 scrip dividend to replace the usual cash dividend.
Assuming no other influence on share price, what is the expected share price following the scrip dividend?
Give your answer to 2 decimal places.
$ ?
A large multi-divisional company in the food processing and distribution business is conducting a strategic review. The divisions all compete in the same market.
The sale of one of its underperforming food processing divisions to the divisional management team is currently being considered. The purchase by the divisional management team will require venture capital finance.
Which THREE of the following are likely to influence the multi-divisional company's decision on whether or not to sell the under-performing division to the management team?
Which of the following statements about companies seeking a stock market listing is correct?
TESTED 22 Dec 2024
