CIMA F3 問題集

質問 1：
A company's Board of Directors is considering raising a long-term bank loan incorporating a number of covenants.
The Board members are unsure what loan covenants involve.
Which THREE of the following statements regarding loan covenants are true?
A. A financial covenant usually requires the company to adhere to specific financial conditions or targets.
B. A covenant gives the financial institution the right but not the obligation to convert debt into equity in a case of non-compliance.
C. A positive loan covenant would require the company to undertake specific actions.
D. A restrictive covenant prohibits the company from conducting certain actions without the approval of the lending institution.
E. A loan covenant has no contractually binding obligations.
正解：A,C,D

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：
A venture capitalist invests in a company by means of buying:
* 9 million shares for $2 a share and
* 8% bonds with a nominal value of $2 million, repayable at par in 3 years' time.
The venture capitalist expects a return on the equity portion of the investment of at least 20% a year on a compound basis over the first 3 years of the investment.
The company has 10 million shares in issue.
What is the minimum total equity value for the company in 3 years' time required to satisify the venture capitalist's expected return?
Give your answer to the nearest $ million.
正解：
$ million.
34, 35, 34000000, 35000000

質問 4：
A listed company is planning to raise $21.6 million to finance a new project with a positive net present value of $5 million. The finance is to be raised via a rights issue at a 10% discount to the current share price. There are currently 100 million shares in issue, trading at $2.00 each.
Taking the new project into account, what would the theoretical ex-rights price be?
Give your answer to two decimal places.
正解：
$ ?
2.02, 2.03

質問 5：
A company is concerned about the interest rate that it will be required to pay on a planned bond issue.
It is considering issuing bonds with warrants attached.
Advise the directors which of the following statements about warrants is NOT correct?
A. Warrants can be sold back to the issuing company for the nominal value of the share if no longer required by the bond holder.
B. Warrants give the holder the right to buy ordinary shares in the company at a fixed price at a future date.
C. Warrants are a debt sweetener attached to the bond to drive down the interest rate payable on the bond.
D. Warrants can potentially be very expensive because they can involve the issue of shares at a discount in the future if exercised.
正解：A

質問 6：
An unlisted company which is owned and managed by its original founders has accumulated excess cash following many years of profitable trading.
The Board of Directors is comprised of the four original founders who each hold 25% of the equity share capital.
Which THREE of the following will be significant considerations when deciding on the company's dividend policy?
A. The impact of the dividend policy on the company's share price.
B. The cash requirements of the shareholders in the foreseeable future.
C. Income tax rates and the personal tax liabilities of the shareholders.
D. The adequacy of the pension funds of the original founders.
E. The dividend policy of listed companies in the same industry.
正解：B,C,D

質問 7：
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 8：
A large, listed company in the food and household goods industry needs to raise $50 million for a period of up to 6 months.
It has an excellent credit rating and there is almost no risk of the company defaulting on the borrowings. The company already has a commercial paper programme in place and has a good relationship with its bank.
Which of the following is likely to be the most cost effective method of borrowing the money?
A. Bank overdraft
B. Commercial paper
C. 6 month term loan
D. Treasury Bills
正解：B