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CIMAPRA19-F03-1 Exam - Topic 5 Question 123 Discussion

A listed company has suffered a period of falling revenues and profit margins. It has been obliged to issue a profit warning to the market and its share price has fallen sharply. The company relies heavily on debt finance and is discussing with its banks possible refinancing options to assist with a restructuring programme.Which THREE of the followingare likely to be ofMOST interest to the company's banks when they review the refinancing requests?
A) Cash flow forecasts and B) Current capital structure and C) Trends in share price movements
D) Shareholder profile
E) Book value of assets

CIMAPRA19-F03-1 Exam - Topic 5 Question 123 Discussion

Actual exam question for CIMA's CIMAPRA19-F03-1 exam
Question #: 123
Topic #: 5
[All CIMAPRA19-F03-1 Questions]

A listed company has suffered a period of falling revenues and profit margins. It has been obliged to issue a profit warning to the market and its share price has fallen sharply. The company relies heavily on debt finance and is discussing with its banks possible refinancing options to assist with a restructuring programme.

Which THREE of the followingare likely to be ofMOST interest to the company's banks when they review the refinancing requests?

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Suggested Answer: A, B, C

by Michel at Apr 09, 2026, 08:17 AM

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Gianna
7 hours ago
Definitely A) Cash flow forecasts. That's crucial for banks.
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Gary
5 days ago
E) Book value of assets might not be as relevant right now.
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Cordelia
11 days ago
B) Current capital structure is definitely a key factor.
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Ria
16 days ago
Wait, why would trends in share price matter to banks?
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Ilda
2 months ago
Totally agree, they need to see the cash situation!
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Suzan
2 months ago
A) Cash flow forecasts are crucial for banks.
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Fletcher
3 months ago
I feel like the shareholder profile could be significant, especially if there are major stakeholders involved, but I’m not confident it’s one of the top three.
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Carissa
3 months ago
Trends in share price movements seem relevant, but I wonder if they matter as much as the actual financials like cash flow or capital structure.
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Mozell
3 months ago
I'm not entirely sure, but I remember something about the current capital structure being important too. It might help the banks assess the risk involved in refinancing.
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Christene
3 months ago
I think cash flow forecasts would definitely be a priority for the banks since they need to see if the company can generate enough cash to service its debt.
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