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

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

Question #: 123
Topic #: 5

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?

ACash flow forecasts

BCurrent capital structure

CTrends in share price movements

DShareholder profile

EBook value of assets

Show Suggested Answer

Suggested Answer: A, B, C

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

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Ilda

18 days ago

Totally agree, they need to see the cash situation!

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Suzan

23 days ago

A) Cash flow forecasts are crucial for banks.

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Fletcher

1 month 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

1 month 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

2 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

2 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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