CIMA F2 Exam With Confidence Using Practice Dumps

Only provides historic data

Only provides financial information

Limited information to identify trends over time

Provide only summarised information

Contains complicated information that needs to be summarised

Only provides forecast data

A covenant on the existing bank loan that restricts the level of dividend that can be paid.

A projected decrease in interest cover that would breach a covenant on the existing loan.

The revaluation of GG's property that shows an increase in its value since the existing bank loan was taken out.

A projected lack of profits to be able to claim tax relief on the additional interest arising from the new loan.

The administration is more complex and therefore likely to be more costly.

The shares will sell at a higher price and therefore generate more funds.

The voting rights of existing shareholders will be unaffected if the shareholders take up their rights.

The cost of underwriting will be lower because the risk of the issue is lower.

The issue will widen the base of shareholders if all shareholders take up their rights.