Cima actualtests cima F3 Questions Answers by Damien q391 vce pdf

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Exam Name:	Financial Strategy
Exam Code:	F3 Dumps
Vendor:	CIMA	Certification:	CIMA Strategic level
Questions:	435 Q&A's	Shared By:	damien

Question 68

Which of the following statements about companies seeking a stock market listing is correct?

Options:

A listing may make it harder for a company to raise money from its existing lenders.

The enhanced reputation of the company can improve its credit rating reducing the risk of non-payment to suppliers and lenders.

When a company seeks a listing this may unsettle its staff, potentially resulting in a loss of valued employees.

A listing will require the owners to either sell a majority of their shares, or, if they retain their shares, to step down from the board.

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Question 69

A large multi-divisional company in the food processing and distribution business is conducting a strategic review. The divisions all compete in the same market.

The sale of one of its underperforming food processing divisions to the divisional management team is currently being considered. The purchase by the divisional management team will require venture capital finance.

Which THREE of the following are likely to influence the multi-divisional company's decision on whether or not to sell the under-performing division to the management team?

Options:

The divisional management team has detailed confidential information about the operation of the other divisions.

The divisional management team has skills and experience that are important for the future successful operation of other divisions.

The ability of the management team to raise the finance required to complete the purchase of the division at a reasonable price.

The quality of the management team and its ability to manage the divested division successfully.

The specific conditions imposed on the management team by the venture capital provider.

Discussion

Question 70

A listed company follows a policy of paying a constant dividend. The following information is available:

• Issued share capital (nominal value $0.50) $60 million

• Current market capitalisation $480 million

The shareholders are requesting an increased dividend this year as earnings have been growing. However, the directors wish to retain as much cash as possible to fund new investments. They therefore plan to announce a 1-for-10 scrip dividend to replace the usual cash dividend.

Assuming no other influence on share price, what is the expected share price following the scrip dividend?

Give your answer to 2 decimal places.

$ ?

Options: