CIMAPRA19-F03-1 Exam - Topic 1 Question 34 Discussion

Actual exam question for CIMA's CIMAPRA19-F03-1 exam

Question #: 34
Topic #: 1

Company X is an established, unquoted company which providesIT advisory services.

The company's results and cashflows are growing steadilyand it has few direct competitors due to the very specialised nature of it's business. Dividends are predictable and paid annually.

Company Pis looking to buy 30% of company X's equity shares.

Which TWO of the following methods arelikely to be consideredmostsuitable valuation methods for valuing company P's investment in Company X?

AAsset based using replacement cost

BDividend based using DVM

CCash based using free cash flow before interest

DP/E ratio method using IT industry average

EEarnings yield method using a listed IT company as proxy

Show Suggested Answer

Suggested Answer: B, C

by Erinn at May 03, 2022, 09:11 AM

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5 months ago

I think I've got a handle on this. A and C seem like the most straightforward ones to me. I'll double-check my work, but I'm feeling pretty confident about those two.

upvoted 0 times

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Interesting, I didn't consider checking the CloudTrail log. That could provide some valuable insights into what might have caused the issue in the first place. I'll keep that in mind as a potential next step.

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Wilford

5 months ago

Hmm, I'm not totally sure about this one. I know dictionary-based attacks are used to crack simple passwords, but I'm not 100% certain that's the right answer here.

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Arminda

5 months ago

I'm a bit stumped on this one. The options don't seem super clear to me. I'll have to review my notes on NAT and its extensions before I can make a confident guess.

upvoted 0 times

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CIMAPRA19-F03-1 Exam - Topic 1 Question 34 Discussion

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