CIMA F3 Exam With Confidence Using Practice Dumps

A company's main objective is to achieve an average growth in dividends of 10% a year. 

In the most recent financial year:

Sales are expected to grow at 8% a year over the next 5 years. 

Costs are expected to grow at 5% a year over the next 5 years. 

What is the minimum dividend payout ratio in 5 years' time that would allow the company to achieve its objective?

Company Z has identified four potential acquisition targets: companies A, B, C and D.

Company Z has a current equity market value of $590 million.

The price it would have to pay for the equity of each company is as follows:

Only one of the target companies can be acquired and the consideration will be paid in cash.

The following estimations of the new combined value of Company Z have been prepared for each acquisition before deduction of the cash consideration:

Ignoring any premium paid on acquisition, which acquisition should the directors pursue?

Company AAB is located in Country A with the A$ as its functional currency It plans to grow by acquisition and has identified Company BBA as a potential takeover candidate Company BBA is located in Country B with the BS as its functional currency.

The directors of Company AAB are concerned about foreign currency risk if the acquisition goes ahead

Which of the following will be most effective in reducing Company AAB's exposure to translation risk if the acquisition is successful1?