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CIMA Exam CIMAPRA19-F02-1 Topic 1 Question 99 Discussion

Actual exam question for CIMA's CIMAPRA19-F02-1 exam
Question #: 99
Topic #: 1
[All CIMAPRA19-F02-1 Questions]

Company A are approached by a wealthy and internationally famous investor shortly before the launch date of their IPO. He tells them that the company do not need to incur all of the cost and risk of an IPO, as he will give them S55 million for 65% equity in the company.

Which of the following statements are also true of the offer? Select ALL that apply.

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Suggested Answer: C

by Margart at Sep 14, 2024, 11:18 PM

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Delfina
6 days ago
Hmm, I'm not sure if the investor is an angel investor. The amount of investment is quite high for an angel investor. I'd say this is more likely a venture capitalist or a private equity firm.
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Catherin
14 days ago
This seems like a great opportunity for the company to avoid the hassle and risk of an IPO. The investor's offer of $55 million for a 65% stake is quite generous.
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Rueben
That's a lot of money for a majority stake in the company.
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Felix
26 days ago
C) The investor will probably want to manage the company
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Lili
27 days ago
B) The offer may ultimately require the majority stakeholder to sell his shares in the company
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Felix
30 days ago
A) This offer is from an angel investor
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