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CIMAPRA19-F03-1 Exam Questions
- Topic 1: Discuss the sources and types of financial risks/ Advice on strategic financial objectives
- Topic 2: Recommend ways of managing financial risks/ Evaluate the capital structure of a firm
- Topic 3: Evaluate the various valuation methods/ Analyse strategic financial policy decisions
- Topic 4: Analyse pricing and bid issues/ Discuss the external influences on financial strategic decisions
- Topic 5: Analyse long-term debt finance/ Discuss post-transaction issues
- Topic 6: Evaluate equity finance/ Evaluate financial risks/ Evaluate dividend policy
- Topic 7: Sources of long-term funds/ Financial policy decisions/ End of topic revision and question practice
Free CIMA CIMAPRA19-F03-1 Exam Actual Questions
Note: Premium Questions for CIMAPRA19-F03-1 were last updated On Aug. 25, 2025 (see below)
A company generates and distributes electricity and gas to households and businesses.
Forecast results for the next financial year are as follows:
The Industry Regulator has announced a new price cap of $1.50 per Kilowatt.
The company expects this to cause consumption to rise by 10% but costs would remained unaltered.
The price cap is expected to cause the company's net profit to fall to:
An unlisted company which is owned and managed by its original founders has accumulated excess cash following many years of profitable trading.
The Board of Directors is comprised of the four original founders who each hold 25% of the equity share capital.
Which THREE of the following will be significant considerations when deciding on the company's dividend policy?
An unlisted company is attempting to value its equity using the dividend valuationmodel.
Relevant information is as follows:
* A dividend of$500,000 has just been paid.
* Dividend growth of 8% is expected for the foreseeable future.
* Earnings growth of 6% is expected for the foreseeable future.
* The cost of equity of a proxy listed company is 15%.
* The risk premium required due tothe companybeing unlisted is 3%.
The calculationthat has been performedis as follows:
Equity value = $540,000 / (0.18 - 0.08) = $5,400,000
What is thefaultwith the calculation that has been performed?
A company plans to raise $12 millionto finance an expansion project using a rights issue.
Relevant data:
* Shares will be offered at a 20% discountto the present market price of $15.00 per share.
* There are currently 2 million shares in issue.
* The project is forecast to yield a positive NPV of $6 million.
What is the yield-adjusted Theoretical Ex-Rights Price following the announcement of the rights issue?
Calc_Set3
A company has in a 5% corporate bond in issue on which there are two loan covenants.
* Interest covermust not fall below 3 times
* Retained earnings for the yearmust not fall below $3.5 million
The Company has 200 million shares in issue.
The most recent dividend per share was $0.04.
The Company intends increasing dividends by 10% next year.
Financial projections for next year are as follows:
Advise the Board of Directors which of the following will be the status of compliance with the loan covenants next year?
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