| Exam Name: | Financial Strategy | ||
| Exam Code: | F3 Dumps | ||
| Vendor: | CIMA | Certification: | CIMA Strategic level |
| Questions: | 435 Q&A's | Shared By: | amna |
A venture capitalist invests in a company by means of buying:
• 9 million shares for $2 a share and
• 8% bonds with a nominal value of $2 million, repayable at par in 3 years' time.
The venture capitalist expects a return on the equity portion of the investment of at least 20% a year on a compound basis over the first 3 years of the investment.
The company has 10 million shares in issue.
What is the minimum total equity value for the company in 3 years' time required to satisify the venture capitalist's expected return?
Give your answer to the nearest $ million.
$ million.
Holding cash in excess of business requirements rather than returning the cash to shareholders is most likely to result in lower:
A listed company is financed by debt and equity.
If it increases the proportion of debt in its capital structure it would be in danger of breaching a debt covenant imposed by one of its lenders.
The following data is relevant:
The company now requires $800 million additional funding for a major expansion programme.
Which of the following is the most appropriate as a source of finance for this expansion programme?
TESTED 30 Apr 2025
