CIMA F3 問題集

質問 1：
The primary objective of a public sector entity is to ensure value for money is generated.
Value for money is defined as performing an activity so as to simultaneously achieve economy, efficiency and effectiveness Efficiency is defined as:
A. obtaining quality inputs at minimum cost.
B. spending funds so as to achieve the objectives of the entity.
C. performing activities in the least amount of time possible
D. obtaining maximum output from minimum inputs
正解：C

質問 2：
Company A plans to diversify by a cash acquisition of Company B an unlisted company in another country (Country B) which operates in a different industrial sector Company A already manufactures its product in Country B and has a loan denominated in Country B's currency Company A regularly suffers foreign exchange losses due to volatility in the exchange rate between the two countries' currencies in recent years.
Which THREE of the following appear to be be valid justifications of this diversification decision?
A. The diversification into another product market will lower business risk
B. The diversification will give Company A greater protection from transaction risk.
C. The diversification will give Company A protection from political risk
D. The diversification will enable Company A to enjoy production scale economies
E. The diversification will give Company A greater protection from translation risk
正解：B,C,E

質問 3：
A listed company is financed by debt and equity.
If it increases the proportion of debt in its capital structure it would be in danger of breaching a debt covenant imposed by one of its lenders.
The following data is relevant:

The company now requires $800 million additional funding for a major expansion programme.
Which of the following is the most appropriate as a source of finance for this expansion programme?
A. Retained earnings
B. Bank overdraft
C. Private placement of a bond
D. Rights issue
正解：D

質問 4：
Company XXY operates in country X with the X$ as its currency. It is looking to acquire company ZZY which operates in country Z with the Z$ as its currency.
The assistant accountant at Company XXY has started to prepare an initial valuation of Company ZZY's equity for the first 3 years, however their valuation is incomplete. TBC' in the table below indicates that her calculations have yet to be completed.

The following information is relevant:

What is the correct figure (to the nearest million S) to include in year 3 as the present value in X$ million?
A. X$360 million
B. X$401 million
C. X$504 million
D. X$453 million
正解：A

質問 5：
The Board of Directors of a listed company wish to estimate a reasonable valuation of the entire share capital of the company in the event of a takeover bid.
The company's current profit before taxation is $10 0 million.
The rate of corporate tax is 20%.
The average P/E multiple of listed companies in the same industry is 10 times current earnings.
The P/E multiple of recent takeovers in the same industry have ranged from 11 times to 12 times current earnings.
The average P/E multiple of the top 100 companies on the stock market is 16 times current earnings.
Advise the Board of Directors which of the following is a reasonable estimate of a range of values of the entire share capital in the event of a bid being made for the whole company?
A. Minimum = $88 million, and maximum = $96 million.
B. Minimum = S100 million, and maximum = $120 million.
C. Minimum = S80 million, and maximum = $128 million.
D. Minimum = $110 million, and maximum = $120 million.
正解：A

質問 6：
A company has accumulated a significant amount of excess cash which is not required for investment for the foreseeable future.
It is currently on deposit, earning negligible returns.
The Board of Directors is considering returning this excess cash to shareholders using a share repurchase programme.
The majority of shareholders are individuals with small shareholdings.
Which THREE of the following are advantages of the company undertaking a share repurchase programme?
A. It reduces the amount of cash for potential future investment opportunities.
B. Institutional investors generally prefer a constant predictable income in the form of dividends.
C. Individual shareholders can realise their investment if they wish.
D. It reduces excess cash which might have been attractive to predators.
E. The earnings per share should increase for the shareholders who do not sell their shares.
正解：C,D,E

質問 7：
The two founding directors of an unlisted geared company want to establish its value as they are intending to approach a venture capitalist for additional funding.
The funding will be used to invest in a major new project which has very high growth potential. The directors intend to sell 10% of the company to the venture capitalist They have prepared the following current valuation of the company using the divided valuation model:

The following information is relevant.
* $60,000 is the most recent dividend paid.
* 4% is the average dividend growth over the last few years.
* 10% is an estimate of the company's cost of equity using the CAPM model with the industry average asset beta Which THREE of the following are weaknesses of the valuation method used in these circumstances?
A. The company is unlikely to achieve constant growth in dividends year-on-year.
B. Future dividend growth is unlikely to reflect historical dividend growth.
C. CAPM cannot be used to estimate the cost of equity of an unlisted company.
D. It is not an appropriate valuation method for a small, 10% equity stake
E. The industry average asset beta is not an appropriate beta to use in CAPM in this case.
正解：A,B,D