F3 Exam Question 1

The ex div share price of Company A's shares is $.3.50
An investor in Company A currently holds 2,000 shares.
Company A plans to issue a script divided of 1 new shares for every 10 shares currently held.
After the scrip divided, what will be the total wealth of the shareholder?
Give your answer to the nearest whole $.

F3 Exam Question 2

Company Z has identified four potential acquisition targets: companies A, B, C and D.
Company Z has a current equity market value of $580 million.
The price it would have to pay for the equity of each company is as follows:
Only one of the target companies can be acquired and the consideration will be paid in cash.
The following estimations of the new combined value of Company Z have been prepared for each acquisition before deduction of the cash consideration:
Ignoring any premium paid on acquisition, which acquisition should the directors pursue?
  • F3 Exam Question 3

    An unlisted company:
    * Is owned by the original founder and member of their families.
    * Is growing more rapidly than other companies in the same industry.
    * Pays a fixed annual divided
    Which of the following methods would be the most appropriate to value this company's equity?
  • F3 Exam Question 4

    Which TIIRCC of the following are most likely to reduce the long term credit rating co a company?
  • F3 Exam Question 5

    Which THREE of the following non-financial objectives would be most appropriate for a listed company in the food retailing industry?