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CIMAPRA19-F03-1 Exam - Topic 3 Question 118 Discussion

A listed company is considering either a one-off special divided or a share repurchase scheme to reduce its surplus cash level.Identify TWO advantages that a one-off special payment has over a share repurchase scheme.
A) It will change balance of share owners. and D) It is easier to arrange than a share repurchase
B) It will reduce the possibility of a hostile takeholder
C) It allows shareholder a choice of option in or out of the payment.
E) It would result in a transfer of wealth back to the shareholder

CIMAPRA19-F03-1 Exam - Topic 3 Question 118 Discussion

Actual exam question for CIMA's CIMAPRA19-F03-1 exam
Question #: 118
Topic #: 3
[All CIMAPRA19-F03-1 Questions]

A listed company is considering either a one-off special divided or a share repurchase scheme to reduce its surplus cash level.

Identify TWO advantages that a one-off special payment has over a share repurchase scheme.

Show Suggested Answer Hide Answer
Suggested Answer: A, D

by Broderick at Nov 22, 2025, 03:28 AM

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Britt
2 months ago
Definitely, C gives flexibility. But D is still my top pick!
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Lamonica
2 months ago
I feel like C is important too. Shareholders like choices.
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Magdalene
3 months ago
Option E is also strong. Wealth transfer is direct to shareholders.
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Patrick
3 months ago
Wait, how does it change the balance of share owners? Sounds fishy.
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Thurman
3 months ago
A special dividend really does transfer wealth back to shareholders.
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Lashunda
3 months ago
Not sure about that, share buybacks can be more flexible.
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Sharee
3 months ago
I agree, a special dividend is a straightforward way to return cash.
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Raina
3 months ago
It’s definitely easier to arrange than a share repurchase!
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Marsha
4 months ago
Hmm, this is a tough one. I'm going to go with C and E.
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Fairy
4 months ago
E is the clear winner here. Who doesn't love getting their money back?
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Levi
4 months ago
I'm torn between C and E, but I think C gives shareholders more flexibility.
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Kerry
5 months ago
D is the easiest choice, but I'm not sure it's the most advantageous.
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Caprice
5 months ago
C and E seem like the best options to me.
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Alpha
5 months ago
I practiced a similar question before, and I think option B might be a stretch. I don't recall it being a major factor in deciding between the two options.
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Sheldon
5 months ago
I feel like option C could be relevant too, as it gives shareholders a clear choice, but I need to double-check if that's really an advantage over buybacks.
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Desiree
5 months ago
I'm not entirely sure, but I remember something about how special dividends can provide immediate cash to shareholders, which might relate to option E.
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Christene
5 months ago
I think option D makes sense because a special dividend is usually straightforward to implement compared to a share buyback, which can be more complex.
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Tawny
6 months ago
Alright, I've got a strategy. I'll carefully read through the answer choices and think about how each one would affect the shareholders and the company. That should help me identify the top two advantages of the special dividend.
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Margot
6 months ago
I think the key here is to focus on how each option impacts the shareholders. A special dividend seems like it would allow more flexibility and control for them, but I'll need to analyze the other choices as well.
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Claudio
6 months ago
I'm a bit confused on the difference between a special dividend and a share repurchase. I'll need to make sure I understand the mechanics of each before I can identify the advantages.
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Veronika
6 months ago
I agree, D makes sense. Less hassle for the company.
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Buck
6 months ago
I think option D is a big advantage. Easier to arrange!
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Lynsey
7 months ago
True, but E might not be as immediate as a special payment.
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Kris
7 months ago
D? Really? That's like saying a one-night stand is easier than a committed relationship.
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Diane
7 months ago
Okay, let's see. A special dividend would give shareholders the choice to participate or not, which could be an advantage over a mandatory share repurchase. I'll need to compare that to the other options.
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Carlee
7 months ago
Hmm, this is a tricky one. I'll need to think carefully about the pros and cons of each option to identify the key advantages of a special dividend.
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Shay
2 months ago
Agreed! Special dividends seem more straightforward overall.
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Pete
2 months ago
True, but I still lean towards D and E. Simplicity matters.
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Luther
2 months ago
But what about option C? Shareholders like having choices.
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Kattie
2 months ago
Definitely! And option E makes sense too. Wealth transfer is key.
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Demetra
6 months ago
I think option D is a big advantage. Easier to arrange for sure.
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