Preparing for a CIMA credential calls for material that follows the official scope. Actual4dump builds its CIMA F3 Financial Strategy practice set around the F3 objectives, with 435 questions designed to support a focused review.

CIMA F3 Exam Overview:

CIMA F3 Exam Syllabus Topics:

Common Questions About CIMA F3 Financial Strategy

CIMA F3 Financial Strategy Sample Questions:

Question 1

X exports goods to customers in a number of small countries Asia. At present, X invoices customers in X's home currency.
The Sales Director has proposed that X should begin to invoice in the customers currency, and the Treasurers considering the implications of the proposal.
Which TWO of the following statement are correct?

A. X will know advance the amount of home currency it will receive for the export sales.
B. If the proposal is adopted, X will have a lower effective sales price per unit due to exchange rate fluctuations.
C. The overseas customers may have difficulty obtaining X's name currency with which to make the purchases, so the Sales Director's proposal may increase sales.
D. X may be able to sell the receipts forward.
E. The customer will tear the foreign exchange risk and will only buy from X if they are prepared to accept this.

Question 2

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. Net asset valuation based on book values.
B. Market capitalisation.
C. Framings valuation using the ratio of a multinational oil exploration company
D. Discounted cash flow valuation

Question 3

Company RRR is a well-established, unlisted, road freight company.
In recent years RRR has come under pressure to improve its customer service and has had some success in doing this However, the cost of improved service levels has resulted in it making small losses in its latest financial year. This is the first time RRR has not been profitable.
RRR uses a 'residual' dividend policy and has paid dividends twice in the last 10 years.
Which of the following methods would be most appropriate for valuing RRR?

A. The earnings yield method, adjusting the earnings yield of a listed company downwards to reflect RRR's unlisted status.
B. Valuing the tangible assets and intangible assets of RRR.
C. The P/E method, adjusting the P/E of a listed company downwards to reflect RRR's unlisted status.
D. The dividend valuation model.

Question 4

Select the most appropriate divided for each of the following statements:

Question 5

Select whether the following statements are true or false with regard to Modigliani and Miller's dividend policy theory.

Solutions: