Free CIMA CIMAPRO19-F03-1-ENG Exam Questions
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CIMA CIMAPRO19-F03-1-ENG Exam Questions
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Provided By: CIMA
- Exam: F3 Financial Strategy
- Certification: CIMA Professional Qualification
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Total Questions: 305
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Updated On: Nov 14, 2024
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Rated: 4.9 |
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Online Users: 610
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Question 1
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A company plans to acquire new machinery.It has two financing options; buy outright using a bank loan, or a finance lease.Which of the following is an advantage of a finance lease compared with a bank loan?
Answer: B
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Question 2
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Company A is a listed company that produces pottery goods which it sells throughout Europe. The pottery isthen delivered to a network of self employed artists who are contracted to paint the pottery in their own homes.Finished goods are distributed by network of sales agents.The directors of Company A are now consideringacquiring one or more smaller companies by means of vertical integration to improve profit margins.Advise the Board of Company A which of the following acquisitions is most likely to achieve the stated aimof vertical integration?
Answer: D
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Company A is a listed company that produces pottery goods which it sells throughout Europe. The pottery is
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Question 3
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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?
Answer: C
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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?
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Question 4
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Z wishes to borrow at a floating rate and has been told that it can use swaps to reduce the effective interest rateit pays. Z can borrow floating at Libor ' 1, and fixed at 10%.Which of the following companies would be the most appropriate for Z to enter into a swap with?
Answer: C
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Question 5
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A company is concerned that a high proportion of its debt portfolio consists of variable rate finance with aninterest rate of LIBOR ' 1 .0%.It is considering using an interest rate swap to reduce interest rate risk out is concerned about additionalfinance cost this might create.A bank has quoted swap rates of 3% 3.5% against LIBOR.A bank has quoted swap rates of 3% 3.5% against LIBOR.Is an interest rate swap likely to be beneficial to the company at current LIBOR rates?
Answer: B
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