CIMA CIMAPRA19-F03-1 valid study dumps : F3 Financial Strategy

Company A plans to acquire Company B in a 1-for-1 share exchange.
Pre-acquisition information is as follows:

Post-acquisition information is as follows:
Annual earnings are expected to increase by $4 million.
The P/E multiple of the combined company is expected to be 12 times.
If the acquisition proceeds, what is the expected percentage increase in the post acquisition share price of Company A?

• A. 0%
• B. 6%
• C. 8%
• D. 50%

A manufacturing company is based in Country L whose currency is the L$.
One of the company's products is exported to Country M, a rapidly growing economy, whose currency is the M$.
In the most recent financial year:
* 100,000 units of the product were sold to customers in country M
* The unit selling price was M$12
The spot rate today is L$1 = M$5
The company has an objective of growth in total sales value in L$ of 10% a year.
If the L$ strengthens by 5% next year against the M$, what volume of sales of this product is needed next year to achieve the objective?

• A. 110,000 units
• B. 115,500 units
• C. 105,000 units
• D. 104,500 units

RST wishes to raise at least $40 million of new equity by issuing up to 10 million new equity shares at a minimum price of $3.00 under an offer for sale by tender. It receives the following tender offers:

What is the maximum amount that RST can raise by this share issue?
(Give your answer to the nearest $ million).

A company raised fixed rate bank finance together with an interest rate swap for the same term and same principal value to pay floating receive fixed rate interest on an annual basis.
Which THREE of the following statements are correct?

• A. The swap contract is normally a contract between a company and a bank.
• B. LIBID (London Interbank Bid Rate) is normally used as the reference rate for determining interest due under the swap.
• C. Under the swap, interest is exchanged every year.
• D. The company has effectively obtained floating rate debt.
• E. On the first day of this arrangement, the company receives the principal borrowed from the bank and pays this across to the swap counterparty.

A is a listed company. Its shares trade on a stock market exhibiting semi-strong form efficiency.
Which of the following is most likely to increase the wealth of A's shareholders?

• A. Announcing that inventory will be impaired.
• B. Announcing that the final dividend will remain unchanged from the previous 3 years.
• C. Announcing that a non-current asset will be revalued in the statement of financial position.
• D. Announcing that a project will be undertaken generating a positive net present value.