Free Practice CIMA CIMAPRA19-F03-1-ENG Exam Questions 2026

Stay ahead with 100% Free F3 Financial Strategy (Online) CIMAPRA19-F03-1-ENG Dumps Practice Questions

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Total 305 Questions | Updated On: May 24, 2026

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Question 1

A company gas a large cash balance but its directors have been unable to identify any positive NPV projects to invest in. Which THREE of the following are advantages of a share repurchase, compared with a one-off large dividend?

A : The shareholder can choose whether to take the cast or not.

B : It increases the number of shares issue.

C : It means that the company will be able to pay lower total dividends in the future.

D : It returns cash to shareholders so that they can choose hew to spend It

E : It will not create an expectation for future increased dividends.

Answer: A,D

Question 2

A is a listed company. Its shares trade on a stock market exhibiting semi-strong form efficiency.

Which of the following is most likely to increase the wealth of A's shareholders?

A : Announcing that a project will be undertaken generating a positive net present value.

B : Announcing that the final dividend will remain unchanged from the previous 3 years.

C : Announcing that a non-current asset will be revalued in the statement of financial position.

D : Announcing that inventory will be impaired.

Answer: A

Question 3

When valuing an unlisted company, a P/E ratio for a similar listed company may be used but adjustments to

the P/E ratio may be necessary.

Which THREE of the following factors would justify a reduction in the proxy p/e ratio before use?

A : The relative lack of marketability of unlisted company shares.

B : A lower level of scrutiny and regulation for unlisted companies.

C : Unlisted companies being generally smaller and less established.

D : Unlisted companies being generally smaller and less established.

E : The forecast earnings growth being relatively higher in the unlisted company.

F : A profit item within the unlisted company's latest earnings which will not reoccur.

Answer: A,B,C

Question 4

When valuing an unlisted company, a P/E ratio for a similar listed company may be used but adjustments to

the P/E ratio may be necessary.

Which THREE of the following factors would justify a reduction in the proxy p/e ratio before use?

A : The relative lack of marketability of unlisted company shares.

B : A lower level of scrutiny and regulation for unlisted companies.

C : Unlisted companies being generally smaller and less established.

D : Control premium not being included within the proxy p/e ratio used.

E : The forecast earnings growth being relatively higher in the unlisted company.

F : A profit item within the unlisted company's latest earnings which will not reoccur.

Answer: A,B,C

Question 5

An unlisted company operates in a niche market, exploring the west coast of Africa for new oiI reservoirs.

The oil exploration program has been successful in recent years and t now has a substantial amount of oil

reserves with a high level of certainty of being recoverable Under financial reporting regulations, oil still in the

ground is not recognised as an asset unit is extracted.

The expense of the exploration program has used up all the company’s available cash resources.

The company has denied to list or a stock market and raise finds through an initial public offering to finance

its drilling program.

Which of the following valuation methods in the appropriate to use in calculating an initial listing price for this

company?

A : Market capitalisation.

B : Framings valuation using the ratio of a multinational oil exploration company

C : Net asset valuation based on book values.

D : Discounted cash flow valuation

Answer: D

Page: 1 / 61

Total 305 Questions | Updated On: May 24, 2026

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