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CIMA F3 Exam Dumps

Exam Name: Financial Strategy
Certification Name: CIMA Strategic F3 - Financial Strategy

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  • Total Questions: 338
  • Last Updation Date: 16-Apr-2024

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Which THREE of the following statements are true of a money market hedge?

 

 

They offer roughly the same outcome as a forward contract.

 

They leave the company exposed to currency risks.

 

They may be a little more flexible in comparison to a forward contract.

 

They are more complex than forward contracts

 

They are easy to set up.


They offer roughly the same outcome as a forward contract.


They leave the company exposed to currency risks.


They are more complex than forward contracts






 Company A has a cash surplus. 

 The discount rate used for a typical project is the company's weighted average cost of
capital of 10%.
No investment projects will be available for at least 2 years.
Which of the following is currently most likely to increase shareholder wealth in respect of
the surplus cash?
 

 

 Investing in a 2 year bond returning 5% each year. 

 

 Investing in the local money market at 4% each year. 

 

 Maintaining the cash in a current account. 

 

 Paying the surplus cash as a dividend at the earliest opportunity. 


 Paying the surplus cash as a dividend at the earliest opportunity. 






Company AB was established 6 years ago by two individuals who each own 50% of the
shares.
Each individual heads a separate division within the company, which now has annual
turnover of GBP10 million and employs 40 people.
Some of the employees are very highly paid as they are important contributors to the
company's profitability.
The owners of the company wish to realise the full value of their investment within the next
12 months.
Which TWO of the following options are most likely to be acceptable exit strategies to the
two owners of the company?

 

Initial Public Offering (IPO)

 

Management Buyout

 

Sale to a larger competitor

 

Sale to a Private Equity Investor on an earn-out basis

 

Spin off (or de-merger)


Management Buyout


Sale to a larger competitor




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