CIMA CIMAPRA19-F03-1 問題集

質問 1：
A company wishes to raise additional debt finance and is assessing the impact this will have on key ratios.
The following data currently applies:
* Profit before interest and tax for the current year is $500,000
* Long term debt of $300,000 at a fixed interest rate of 5%
* 250,000 shares in issue with a share price of $8
The company plans to borrow an additional $200,000 on the first day of the year to invest in new project which will improve annual profit before interest and tax by $24,000.
The additional debt would carry an interest rate of 3%.
Assume the number of shares in issue remain constant but the share price will increase to $8.50 after the investment.
The rate of corporate income tax is 30%.
After the investment, which of the following statements is correct?
A. Interest cover will rise; P/E ratio will fall.
B. Interest cover will rise; P/E ratio will rise.
C. Interest cover will fall; P/E ratio will rise.
D. Interest cover will fall; P/E ratio will fall.
正解：C

質問 2：
Which of the following statements are true with regard to interest rate swaps?
Select ALL that apply.
A. An nicest rate swap is an internal hedging technique.
B. An interest rate swap is an external hedging technique.
C. When interest rates are falling the risk of default by the fixed interest rate payer is low.
D. Some companies interest rate swap to deliberately increase their risks because they believe that they are better at predicting future interest rates than the market.
E. Risk of default is high from the floating interest rate payer if interest rates rise.
正解：B,C,E

質問 3：
A listed company in a high growth industry, where innovation is a key driver of success has always operated a residual dividend policy, resulting in volatility in dividends due to periodic significant investments in research and development.
The company has recently come under pressure from some investors to change its dividend policy so that shareholders receive a consistent growing dividend. In addition, they suggested that the company should use more debt finance.
If the suggested change is made to the financial policies, which THREE of the following statements are true?
A. It may give a signal to the market that the company is entering a period of stable growth.
B. Retained earnings have a lower cost than debt finance.
C. There may be a change to the shareholder profile due to 'the clientele effect'.
D. The directors will not have to take shareholder dividend preferences into consideration in future.
E. The company's financial risk will increase due to its increased use of debt finance.
正解：A,C,E

質問 4：
A listed company is planning a share repurchase.
The following data applies:
* There are 10 million shares in issue
* The share repurchase will involve buying back 20% of the shares at a price of $0.75
* The company is holding $2 million cash
* Earnings for the current year ended are $2 million
The Directors are concerned about the impact that this repurchase programme will have on the company's cash balance and current year earnings per share (EPS) ratio.
Advise the directors which of the following statements is correct?
A. The cash balance will decrease by 75% and EPS will increase by 25%.
B. The cash balance will decrease by 20% and the EPS will decrease by 25%.
C. The cash balance will decrease by 75% and EPS will decrease by 25%.
D. The cash balance will decrease by 20% and the EPS will increase by 25%.
正解：A

質問 5：
Assume today is 31 December 20X1.
A listed mobile phone company has just launched a new phone which is proving to be a great success.
As a direct result of the product's success, earnings are forecast to increase by:
* 5% a year in each of years 20X2 - 20X6
* 3% from 20X7 onwards
Market analysts were very excited to hear the news of the success of the product and future growth forecasts.
Assuming a semi-efficient market applies, which of the following company valuation methods is likely to give the best estimate of the company's equity value today?
A. Today's share price x number of shares in issue + retained earnings.
B. Today's share price x number of shares in issue.
C. P/E valuation based on the company's long term P/E and earnings for the year ended 31 December
20X1.
D. Discounted free cash flow using the company's forecast growth rates.
正解：B

質問 6：
Company MB is in negotiations to acquire the entire share capital of Company BBA. Information about each company is as follows:

It is expected that Company BBA's profit before interest and tax will be $30 million in each of the two years after acquisition. Company AAB is considering how best to structure the offer Company AAB's discount factor and appropriate cost of equity for use in valuing Company BBA is 10% Shareholders taxation implications should be ignored Which of the following provides the shareholders of Company BBA with the highest offer price?
A. A cash offer at 105% of the share price of Company BBA.
B. Cash of $270 million now plus 60% of Company BBA's profit before interest and tax for the two years after acquisition, paid in 2 years' time.
C. A share-for-share exchange of five shares in Company AAB for every eight shares in Company BBA.
D. A cash offer of S290 million now.
正解：B