CIMAPRA19-F03-1-ENG 시험 - CIMA실제시험문제와 답 - 222문항

Question No : 1

A company has forecast the following results for the next financial year:
The following is also relevant:
• Profit after tax for the year can be assumed to be equivalent to free cash flow for the year.
• Debt finance comprises a $10 million floating rate loan which currently carries
an interest rate of 5%.
• $400,000 investment in non-current assets is required to achieve required growth, all of which is to financed from next year's free cash flow.
• The company plans to pay a dividend of $150,000 next year, financed from next year's free cash flow.
The company is concerned that interest rates could rise next year to 6% which could then affect their investment plans.
If interest rates were to rise to 6% and the company wishes to maintain its dividend
amount, the planned investment expenditure will decrease by:

A.$25,000
B.$75,000
C.$50,000
D.$100,000

정답:

Question No : 2

A listed publishing company owns a subsidiary company whose business activity is training.
It wishes to dispose of the subsidiary company.
The following information is available:
The board of the publishing company believe that the value of the subsidiary company, and hence the value of the equity invested in it, can be determined by calculating the present value of the subsidiary's free cashflows.
Which of the following is the most appropriate discount rate to use when determining the enterprise value of the company?

A.A WACC that reflects the gearing of the publishing company and the asset beta of a listed company that provides training activities.
B.A cost of equity that reflects the asset beta of a listed company that provides training activities.
C.A WACC that reflects the gearing of the subsidiary company and the asset beta of a listed company that provides training activities.
D.A WACC that the reflects the gearing of the publishing company and the equity beta factor of the publishing company.

정답:

Question No : 3

A listed company has recently announced a profit warning.
The company's share price fell 20% on the day of the announcement but had been fairly static in the weeks leading up to the announcement.
Which form of efficient market is most likely to be indicated by this share price movement?

A.Weak form
B.Semi-strong form
C.Strong form
D.Random walk

정답:

Question No : 4

CORRECT TEXT
A company is planning to repurchase some of its shares.
Relevant details are as follows:
• 100 million shares in issue
• Current share price $5
• 5 million shares to be repurchased
• 10% repurchase premium
• Repurchased shares to be cancelled
What would you expect the share price after the repurchase to be?
Give your answer to two decimal places.
$ ?

정답: 4.97, 4.98

Question No : 5

Company A plans to acquire Company B, an unlisted company which has been in business for 3 years.
It has incurred losses in its first 3 years but is expected to become highly profitable in the near future.
No listed companies in the country operate the same business field as Company B, a unique new high-risk business process.
The future success of the process and hence the future growth rate in earnings and dividends is difficult to determine.
Company A is assessing the validity of using the dividend growth method to value Company B.
Which THREE of the following are weaknesses of using the dividend growth model to value an unlisted company such as Company B?

A.The company has been unprofitable to date and hence, there is no established dividend payment pattern.
B.The future projected dividend stream is used as the basis for the valuation.
C.The future growth rate in earnings and dividends will be difficult to accurately determine.
D.The dividend growth model does not take the time value of money into consideration.
E.The cost of capital will be difficult to estimate.

정답:

Question No : 6

A project requires an initial outlay of $2 million which can be financed with either a bank loan or finance lease.
The company will be responsible for annual maintenance under either option.
The tax regime is:
• Tax depreciation allowances can be claimed on purchased assets.
• If leased using a finance lease, tax relief can be claimed on the interest element of the lease payments and also on the accounting depreciation charge.
The trainee management accountant has begun evaluating the lease versus buy decision and has produced the following data. He is not confident that all this information is relevant to this decision.
Using only the relevant data, which of the following is correct?

A.The bank loan is $30,000 MORE expensive than the finance lease.
B.The bank loan is $20,000 LESS expensive than the finance lease.
C.The bank loan is $70,000 LESS expensive than the finance lease.
D.The bank loan is $120,000 LESS expensive than the finance lease.

정답:

Question No : 7

A company is considering the issue of a convertible bond compared to a straight bond issue (non-convertible bond).
Director A is concerned that issuing a convertible bond will upset the shareholders for the following reasons:
• it will dilute their control
• the interest payments will be higher therefore reducing liquidity
• it will increase the gearing ratio therefore increasing financial risk
Director B disagrees, and is preparing a board paper to promote the issue of the convertible bond rather than a non-convertible.
Advise the Director B which THREE of the following statements should be included in his board paper to promote the issue of the convertible bond?

A.The convertible bond may not dilute control as the bond holder has an option to choose conversion.
B.The coupon rate on the convertible bond will be lower than that on a non-convertible bond.
C.When converted into shares, the company will receive a cash inflow which can be used for future investments.
D.Issuing a convertible bond will have a more favourable impact on the gearing ratio than a non-convertible bond.
E.Over the life of the bond, a convertible will be more expensive than a non-convertible.

정답:

Question No : 8

An unlisted company is attempting to value its equity using the dividend valuation model.
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 to the company being unlisted is 3%.
The calculation that has been performed is as follows:
Equity value = $540,000 / (0.18 - 0.08) = $5,400,000
What is the fault with the calculation that has been performed?

A.The cost of equity used in the calculation should have been 12% (15% subtract 3%).
B.The dividend cashflow used should have been $500,000 rather than $540,000.
C.The dividend growth rate is unsuitable given that earning growth is lower than dividend growth.
D.The cost of equity used in the calculation should have been 15%; no adjustment was necessary.

정답:

Question No : 9

A company plans a four-year project which will be financed by either an operating lease or a bank loan.
Lease details:
• Four year lease contract.
• Annual lease rentals of $45,000, paid in advance on the 1st day of the year. Other information:
• The interest rate payable on the bank borrowing is 10%.
• The capital cost of the project is $200,000 which would have to be paid at the beginning of the first year.
• A salvage or residual value of $100,000 is estimated at the end of the project's life.
• Purchased assets attract straight line tax depreciation allowances.
• Corporate income tax is 20% and is payable at the end of the year following the year to which it relates.
A lease-or-buy appraisal is shown below:
Which THREE of the following items are errors within the appraisal?

A.Lease payments are timed incorrectly
B.Tax relief on lease payments have not been lagged correctly
C.Using the 10% discount rate is incorrect
D.The project's operating cashflows should be included
E.The bank loan repayments should be included
F.The salvage value has been included within the lease option

정답:

Question No : 10

A company has some 7% coupon bonds in issue and wishes to change its interest rate profile.
It has decided to do this by entering into a plain coupon interest rate swap with it's bank.
The bank has quoted a swap rate of: 6.0% - 6.5% fixed against LIBOR.
What will the company's new interest rate profile be?

A.VARIABLE at LIBOR
B.VARIABLE at LIBOR + 0.5%
C.VARIABLE at LIBOR + 1.0%
D.FIXED at 6.5%

정답:

Question No : 11

Which of the following explains an aim of integrated reporting in accordance
with The International <IR> Framework as issued by the International Integrated Reporting Council?

A.To highlight the need for greater reporting of performance to stakeholders in a greater level of detail than at present.
B.To support decision making and actions that focus on creating value over the short, medium and long term.
C.To integrate the various accepted accounting practices of member bodies into a single, unified code of accounting principles.
D.To highlight the separation of strategy, governance and financial performance in a social, environmental and economic context.

정답:

Question No : 12

Company A is proposing a rights issue to finance a new investment. Its current debt to equity ratio is 10%.
Which TWO of the following statements are true?
A. The issue price has to be at least 20% below the pre-rights share price.
B. The issue price of new shares should be set to guarantee the full take up of shares offered.
C. The actual ex-rights price may be higher than the theoretical ex-rights price due to the value created from the project.
D. Company A's current low gearing ratio may require a rights issue rather than a debt issue to finance the new project.
E. According to Modigliani and Miller's Theory of Capital Structure with tax, the rights issue will result in a lower cost of equity for Company A.

정답: C,E

Question No : 13

Company M is a listed company in a highly technical service industry.
The directors are considering making a cash offer for the shares in Company Q, an unquoted company in the same industry.
Relevant data about Company Q:
• The company has seen consistent growth in earnings each year since it was founded 10 years ago.
• It has relatively few non-current assets.
• Many of the employees are leading experts in their field.
A recent exercise suggested that the value of the company's human capital exceeded the value of its tangible assets.
The directors and major shareholders of Company Q have indicated willingness to sell the company.
Before negotiations become too advanced, the directors of Company M are considering the benefits to their company that would follow the acquisition.
Which THREE of the following are the most likely benefits of the acquisition to Company M's shareholders?

A.Access to technical expertise.
B.Reduction of risk through diversification.
C.Improved asset backing for borrowing due to the acquisition of intangible assets.
D.Gain economies of scale.
E.Improve earnings per share (EPS).

정답:

Question No : 14

Two listed companies in the same industry are joining together through a merger.
What are the likely outcomes that will occur after the merger has happened? Select ALL that apply.

A.Increase in customer base.
B.Competition authorities step in to stop a potential price monopoly.
C.Decrease in employee motivation due to internal changes.
D.Changes to supplier relationships owing to internal changes.
E.Cost savings from synergistic benefits and economies of scale.

정답:

Question No : 15

A company needs to raise $20 million to finance a project.
It has decided on a rights issue at a discount of 20% to its current market share price.
There are currently 20 million shares in issue with a nominal value of $1 and a market price of $5 per share.
Calculate the terms of the rights issue.

A.1 new share for every 4 existing shares
B.1 new share for every 20 existing shares
C.1 new share for every 5 existing shares
D.1 new share for every 25 existing shares

정답:

CIMA CIMAPRA19-F03-1-ENG 시험