Free CIMA CIMAPRO19-F03-1-ENG Practice Exam Questions and Answers 2026

The Treasurer of Z intends to use interest rate options to set an interest rate cap on Z’s borrowings. Which of the following statement is correct?

The directors of a financial services company need to calculate a valuation of their company’s equity inpreparation for an upcoming initial Public Offering (IPO) of shares. At a recent board meeting they discussedthe various methods of business valuation.The Chief Executive suggested using a Price-earing (P./E) method of valuation, but the finance Directorargued that a valuation based on forecast cash flows to equity would be more appropriate.Which THREE of the following are advantages of valuation based on forecast cash flows to equity, comparedto a valuating using a price earnings methods?

A company based in Country D, whose currency is the D$, has an objective of maintaining an operating profitmargin of at least 10?ch year.Relevant data: • The company makes sales to Country E whose currency is the E$. It also makes sales to Country F whosecurrency is the F$. • All purchases are from Country G whose currency is the G$. • The settlement of all transactions is in the currency of the customer or supplier.Which of the following changes would be most likely to help the company achieve its objective?

Company A needs to raise AS500 mi lion to invest in a new project and is considering using a pub ic issue ofbonds to finance the investment.Which THREE of the following statements-relating to this bond issue are true?

A listed company in a high growth industry, where innovation is a key driver of success has always operated aresidual dividend policy, resulting in volatility in dividends due to periodic significant investments in researchand development.The company has recently come under pressure from some investors to change its dividend policy so thatshareholders receive a consistent growing dividend. In addition, they suggested that the company should usemore debt finance.If the suggested change is made to the financial policies, which THREE of the following statements are true?