Free Practice CIMA CIMAPRA19-F03-1-ENG Exam Questions 2025

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: Apr 23, 2025

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Question 1

Which THREE of the following would be most important if a hospital wishes to review the effectiveness of its services?

A : The proportion of surgical procedures that are deemed to be successful.

B : Average waiting times for treatment.

C : Patient satisfaction ratings.

D : Staff costs compared to previous years.

E : Revenue generated from car park charges.

Answer: A,B,C

Question 2

Company W has received an unwelcome takeover bid from Company B. The offer is a share exchange of 3

shares in Company B for 5 shares in Company W or a cash alternative of $5.70 for each Company W share.

Company B is approximately twice the size of Company W based on market capitalisation. Although the two

companies have some common business interested the main aim of the bid is diversification for Company B.

Company W has substantial cash balances which the directors were planning to use to fund an acquisition.

These plans have not been announced to the market.

The following share price information is relevant.

Which of the following would be the most appropriate action by Company W's directors following receipt of

this hostile bid?

A : Change the Articles of Association to increase the percentage of shareholder votes required to approve atakeover.

B : Refer the bid to the country's competition authorities.

C : Write to shareholders explaining fully why the company's share price is under valued.

D : Pay a one-off special dividend.

Answer: C

Question 3

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 4

Which THREE of the following are considered in detail in IFRS 7 Financial Instruments: Disclosures?

A : Credit risk

B : Business risk

C : Market risk

D : Enterprise risk

E : Liquidity risk

Answer: A,C

Question 5

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

Page: 1 / 61

Total 305 Questions | Updated On: Apr 23, 2025

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