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CIMA F3 Exam With Confidence Using Practice Dumps

Exam Code:
F3
Exam Name:
Financial Strategy
Certification:
CIMA Strategic
Vendor:
CIMA
Questions:
393
Last Updated:
Jan 21, 2026
Exam Status:
Stable
CIMA F3

F3: CIMA Strategic Exam 2025 Study Guide Pdf and Test Engine

Are you worried about passing the CIMA F3 (Financial Strategy) exam? Download the most recent CIMA F3 braindumps with answers that are 100% real. After downloading the CIMA F3 exam dumps training , you can receive 99 days of free updates, making this website one of the best options to save additional money. In order to help you prepare for the CIMA F3 exam questions and verified answers by IT certified experts, CertsTopics has put together a complete collection of dumps questions and answers. To help you prepare and pass the CIMA F3 exam on your first attempt, we have compiled actual exam questions and their answers. 

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Financial Strategy Questions and Answers

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Question 1

A company has:

   • A price/earnings (P/E) ratio of 10.

   • Earnings of $10 million.

   • A market equity value of $100 million.

The directors forecast that the company's P/E ratio will fall to 8 and earnings fall to $9 million.

 

Which of the following calculations gives the best estimate of new company equity value in $ million following such a change?

A)

B)

C)

D)

Option A

Option B

Option C

Option D

Options:

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Question 2

A listed company in the retail sector has accumulated excess cash.

In recent years, it has experienced uncertainly with forecasting the required level of cash for capital expenditure due to unpredictable economic cycles.

Its excess cash is on deposit earning negligible returns.

The Board of Directors is considering the company's dividend policy, and the need to retain cash in the company.

 

Which THREE of the following are advantages of retaining excess cash in the company? 

Options:

A.

Retaining excess cash may make the company vulnerable to hostile takeover. 

B.

The excess cash is earning a negligible return. 

C.

The company will be in a position to respond promptly to unexpected investment opportunities.

D.

Liquidity problems are less likely to be experienced if there is a downturn in business.

E.

The market may interpret the return of excess cash as a sign of weak growth prospects.

Question 3

The Board of Directors of a listed company wish to estimate a reasonable valuation of the entire share capital of the company in the event of a takeover bid.

The company's current profit before taxation is $4.0 million.

The rate of corporate tax is 25%.

The average P/E multiple of listed companies in the same industry is 8 times current earnings.

The P/E multiple of recent takeovers in the same industry have ranged from 9 times to 10 times current earnings.

The average P/E multiple of the top 100 companies on the stock market is 15 times current earnings. 

 

Advise the Board of Directors which of the following is a reasonable estimate of a range of values of the entire share capital in the event of a bid being made for the whole company?

Options:

A.

Minimum = $36 million, and maximum = $40 million.

B.

Minimum = $27 million, and maximum = $30 million.

C.

Minimum = $32 million, and maximum = $60 million.

D.

Minimum = $24 million, and maximum = $45 million.

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