CIMA CIMAPRA19-F03-1 問題集

質問 1：
A company plans a four-year project which will be financed by either an operating lease or a bank loan.
Lease details:
* Four year lease contract.
* Annual lease rentals of $45,000, paid in advance on the 1st day of the year.
Other information:
* The interest rate payable on the bank borrowing is 10%.
* The capital cost of the project is $200,000 which would have to be paid at the beginning of the first year.
* A salvage or residual value of $100,000 is estimated at the end of the project's life.
* Purchased assets attract straight line tax depreciation allowances.
* Corporate income tax is 20% and is payable at the end of the year following the year to which it relates.
A lease-or-buy appraisal is shown below:

Which THREE of the following items are errors within the appraisal?
A. The bank loan repayments should be included
B. Lease payments are timed incorrectly
C. Tax relief on lease payments have not been lagged correctly
D. The salvage value has been included within the lease option
E. Using the 10% discount rate is incorrect
F. The project's operating cashflows should be included
正解：C,D,E

質問 2：
Company A has agreed to buy all the share capital of Company B.
The Board of Directors of Company A believes that the post-acquisition value of the expanded business can be computed using the "boot-strapping" concept.
Which of the following most accurately describes "boot-strapping" in this context?
A. Adding together the current post-tax earnings of each company and multiplying this by the price/earnings ratio of the bidder
B. Combining the pre-acquisition market capitalisation of each company
C. Adding together the current post tax earnings of each company and multiplying this by the price earnings ratio of the acquired entity
D. Forecasting the future free cash flows of the combined entities and discounting these at the bidder's Weighted Average Cost of Capital
正解：A

質問 3：
MAN is a manufacturing company that is based in country M and sells almost exclusively to customers in country M, priced in the local currency, M$.
MAN wishes to expand the business by acquiring a company that manufactures similar products but has a more global customer base. It is particularly interested in selling to customers in country P, which uses currency P$ but recognises that the P$ is generally quite volatile against the M$.
Country P uses the same language as country M, has free entry of labour from country M, no exchange controls or withholding tax and a favourable double tax treaty.
Which of the following companies would be most suitable takeover candidates for MAN to investigate further?
A. A company based in country M with a global customer base including country P.
B. A company based in country M with a shared interest in selling in country P.
C. A company based in country P with a global customer base including country P.
D. A company based in country P with a large proportion of customers in country M.
正解：C

質問 4：
Which THREE of the following statements are correct in respect of the issuance of debt securities.
A. A corporate entity coming to the bond market for the first time will find it easier to issue corporate bonds than to arrange a conventional term loan.
B. Governments are the most frequent issuers of bonds and the proceeds are used to fund government expenditure or service the national debt.
C. A bond issuer must appoint at least one market-maker to ensure that there is a liquid market in its traded bonds.
D. The redemption yield on a corporate bond can be determined by calculating the internal rate of return based on the cash flows arising during the duration of the bond.
E. Investors in traded bonds have an ownership (or equity stake) in the company which issued the bonds.
正解：A,B,E

質問 5：
XYZ is a multi-national group with subsidiary AA in Country A and subsidiary BB in Country B. The capital structures of AA and BB are set up to take advantage of the lower tax rate in Country A Thin capitalisation rules in Country B will limit the ability for either AA or BB to claim tax relief on:
A. interest earned by BB.
B. interest paid by BB
C. interest earned by AA
D. interest paid by AA
正解：B

質問 6：
An all equity financed company plans an issue of new ordinary shares to the general public to raise finance for a new project The following data applies:
* 10 million ordinary shares are currently in issue with a market value of S3 each share
* The new project will cost S2.88 million and is expected to give a positive NPV of S1 million
* The issue will be priced at a AaA discount to the current share price.
What gam or loss per share will accrue to the existing shareholders?
A. Gain of 0.18
B. Loss of $0.08
C. Loss of $0.18
D. Gain of $0.08
正解：D