CIMA F3 問題集

質問 1：
A company with a market capitalisation of S50million is considering raising $1 million debt to fund a new
10-year capital investment protect
The value of this issue is considered to be small in comparison to the company's market capitalisation The company is considering whether to raise the debt finance by either a "bond private placing' or a 'public bond issue.
Which THREE of the following statements are correct?
A. The company's credit rating will be a key element in determining the interest rate payable and the potential success of either the public bond issue or the bond private placing
B. An initial public bond issue will be administratively complex and relatively expensive for the relatively small amount of debt being raised whereas a bond private placing will be relatively less complex
C. An initial public bond issue can be arranged relatively quickly whereas a bond private placing can take up to a year to arrange.
D. An initial public bond issue does not need to be underwritten whereas a bond private placing must be underwritten.
E. An average investor is made aware of a potential initial public bond issue whereas the average investor is only made aware of a bond private placing after it has occurred.
正解：B,C

質問 2：
An unlisted company is attempting to value its equity using the dividend valuation model.
Relevant information is as follows:
* A dividend of $500,000 has just been paid.
* Dividend growth of 8% is expected for the foreseeable future.
* Earnings growth of 6% is expected for the foreseeable future.
* The cost of equity of a proxy listed company is 15%.
* The risk premium required due to the company being unlisted is 3%.
The calculation that has been performed is as follows:
Equity value = $540,000 / (0.18 - 0.08) = $5,400,000
What is the fault with the calculation that has been performed?
A. The dividend growth rate is unsuitable given that earning growth is lower than dividend growth.
B. The cost of equity used in the calculation should have been 12% (15% subtract 3%).
C. The dividend cashflow used should have been $500,000 rather than $540,000.
D. The cost of equity used in the calculation should have been 15%; no adjustment was necessary.
正解：A

質問 3：
The directors of a financial services company need to calculate a valuation of their company's equity in preparation for an upcoming initial Public Offering (IPO) of shares. At a recent board meeting they discussed the various methods of business valuation.
The Chief Executive suggested using a Price-earing (P./E) method of valuation, but the finance Director argued that a valuation based on forecast cash flows to equity would be more appropriate.
Which THREE of the following are advantages of valuation based on forecast cash flows to equity, compared to a valuating using a price earnings methods?
A. The calculations are much simpler.
B. It give on estimate of the likely shareholder value that will be created.
C. It incorporates the time value of money.
D. Using cash is theoretically superior to using profits in a valuation calculation.
E. It avoids the problem of having to forecast a sustainable level of future growth.
正解：A,C,D

質問 4：
Listed Company A has prepared a valuation of an unlisted company. Company B. to achieve vertical integration Company A is intending to acquire a controlling interest in the equity of Company B and therefore wants to value only the equity of Company B.
The assistant accountant of Company A has prepared the following valuation of Company B's equity using the dividend valuation model (DVM):
Where:
* S2 million is Company B's most recent dividend
* 5% is Company B's average dividend growth rate over the last 5 years
* 10% is a cost of equity calculated using the capital asset pricing model (CAPM), based on the industry average beta factor

Which THREE of the following are valid criticisms of the valuation of Company B's equity prepared by the assistant accountant?
A. It is better to use the present value of earnings rather than present value of dividends to value a controlling interest
B. The 5% growth rate may not reflect the future growth of Company B.
C. The beta factor used may not reflect Company B's financial risk.
D. An unlisted company cannot use the capital asset pricing model to calculate its cost of equity
E. The DVM calculation should use Company A's cost of equity rather than Company B's cost of equity
正解：B,C,E

質問 5：
A company is considering whether to lease or buy an asset.
The following data applies:
* The bank will charge interest at 7.14% per annum
* The asset will cost $1 million
* Tax-allowable depreciation is available on a straight line basis over 5 years
* There is no residual value
* Corporate tax is paid at 30% in the year when the profit is earned
What is the NPV of the buy option?
Give your answer to the nearest $000.
正解：
$ ?
740

質問 6：
Which THREE of the following prevent the Purchasing Power Parity Model from operating effectively in practice?
A. Consumer tastes
B. Arbitrage
C. Transport costs
D. Import tariffs
E. Differing tax regimes
正解：B,D,E

質問 7：
Company Z has identified four potential acquisition targets: companies A, B, C and D.
Company Z has a current equity market value of $580 million.
The price it would have to pay for the equity of each company is as follows:

Only one of the target companies can be acquired and the consideration will be paid in cash.
The following estimations of the new combined value of Company Z have been prepared for each acquisition before deduction of the cash consideration:
Ignoring any premium paid on acquisition, which acquisition should the directors pursue?
A. D
B. A
C. B
D. C
正解：D

質問 8：
Company WWW is considering making a takeover bid for Company KKA Company KKA's current share price is $5.00 Company WWW is considering either
" A cash payment of $5.75 for each share in Company KKA
" A 5 year corporate bond with a market value of $90 in exchange for 15 shares in Company KKA Calculate the highest percentage premium which Company KKA shareholders will receive.
A. Cash premium = 15%
B. Corporate bond premium = 20%
C. Corporate bond premium = 80%
D. Cash premium = 10%
正解：B