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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:
435
Last Updated:
Nov 26, 2025
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

Company C has received an unwelcome takeover bid from Company P.

Company P is approximately twice the size of Company C based on market capitalisation.

Although the two companies have some common business interests, the main aim of the bid is diversification for Company P.

The offer from Company P is a share exchange of 2 shares in Company P for 3 shares in Company C.

There is a cash alternative of $5.50 for each Company C share.

Company C has substantial cash balances which the directors were planning to use to fund an acquisition.

These plans have not been announced to the market.

 

The following share price information is relevant. All prices are in $.

  

 

Which of the following would be the most appropriate action by Company C's directors following receipt of this hostile bid?

Options:

A.

Write to shareholders explaining fully why the company's share price is undervalued.

B.

Change the Articles of Association to increase the percentage of shareholder votes required to approve a takeover.

C.

Pay a one-off special dividend.

D.

Refer the bid to the country's competition authorities.

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Question 2

Company A is identical in all operating and risk characteristics to Company B, but their capital structures differ.

Company B is all-equity financed. Its cost of equity is 17%.

Company A has a gearing ratio (debt:equity) of 1:2. Its pre-tax cost of debt is 7%. 

Company A and Company B both pay corporate income tax at 30%.

What is the cost of equity for Company A?

Options:

A.

20.5%

B.

21.2%

C.

22.0%

D.

17.0%

Question 3

A company has forecast the following results for the next financial year:

  

The following is also relevant:

   • Profit after tax for the year can be assumed to be equivalent to free cash flow for the year.

   • Debt finance comprises a $10 million floating rate loan which currently carries an interest rate of 5%.

   • $400,000 investment in non-current assets is required to achieve required growth, all of which is to financed from next year's free cash flow.

   • The company plans to pay a dividend of $150,000 next year, financed from next year's free cash flow.

The company is concerned that interest rates could rise next year to 6% which could then affect their investment plans.

 

If interest rates were to rise to 6% and the company wishes to maintain its dividend amount, the planned investment expenditure will decrease by:

Options:

A.

$25,000

B.

$75,000

C.

$50,000

D.

$100,000

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