CIMA F3 問題集

質問 1：
A company is financed by debt and equity and pays corporate income tax at 20%.
Its main objective is the maximisation of shareholder wealth.
It needs to raise $200 million to undertake a project with a positive NPV of $10 million.
The company is considering three options:
* A rights issue.
* A bond issue.
* A combination of both at the current debt to equity ratio.
Estimations of the market values of debt and equity both before and after the adoption of the project have been calculated, based upon Modigliani and Miller's capital theory with tax, and are shown below:

Under Modigliani and Miller's capital theory with tax, what is the increase in shareholder wealth?
A. $210 million if financed by equity
B. $160 million if financed by a mixture of debt and equity
C. $10 million irrespective of finance
D. $50 million if financed by debt
正解：D

質問 2：
A company is planning a share repurchase programme with the following details:
* Repurchased shares will be immediately cancelled.
* The shares will be purchased at a premium to the market share price.
The current market share price is greater than the nominal value of the shares.
Which of the following statements about the impact of the share repurchase programme on the company's financial statements is correct?
A. The premium to the market value would be charged to the Income Statement.
B. The premium to the nominal value would be charged to retained earnings.
C. The total value of the equity in its Statement of Financial Position would remain unchanged.
D. The share capital figure would reduce by the nominal value of the shares purchased.
正解：D

質問 3：
Which THREE of the following are benefits of integrated reporting?
A. Improve short term decision making.
B. Promote an understanding of the interdependencies of capitals.
C. Reduce the amount of work that is required to produce the report and accounts.
D. Support integrated decision-making.
E. Improve the quality of information available to the providers of financial capital.
正解：B,D,E

質問 4：
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

質問 5：
When valuing an unlisted company, a P/E ratio for a similar listed company may be used but adjustments to the P/E ratio may be necessary.
Which THREE of the following factors would justify a reduction in the proxy p/e ratio before use?
A. A profit item within the unlisted company's latest earnings which will not reoccur.
B. The relative lack of marketability of unlisted company shares.
C. A lower level of scrutiny and regulation for unlisted companies.
D. Unlisted companies being generally smaller and less established.
E. Control premium not being included within the proxy p/e ratio used.
F. The forecast earnings growth being relatively higher in the unlisted company.
正解：B,C,D

質問 6：
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 7：
A product costs USD10 when purchased in the USA. The same product costs USD12 when it is purchased in the UK and the price in GBP is convened to USD.
Which of the following statement concerning purchasing power parity is correct?
A. This type of price deferential is a reliable baas for predicting currency movements
B. Economic forces should eliminate the price difference. But there could be market imperfections that permit it to persist.
C. Economic forces will bring the prices in the USA and UK into line.
D. The exchange rate between the USD and GBP will change so that tie price differential on this product (and at other products) I s eliminated.
正解：B

質問 8：
Extracts from a company's profit forecast for the next financial year is as follows:

Since preparing the forecast, the company has decided to return surplus cash to shareholders by a share repurchase arrangement.
The share repurchase would result in the company purchasing 20% of the 2,000 million ordinary shares currently in issue and cancelling them.
Assuming the share repurchase went ahead, the impact on the company's forecast earnings per share will be an increase of:
A. $0,100
B. $0,050
C. $0,125
D. $0,075
正解：B