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Download F3 Financial Strategy Exam Dumps
NEW QUESTION 23
A company's directors plan to increase gearing to come in line with the industry average of 40%. They need to know what the effect will be on the company's WACC.
According to traditional theory of gearing the WACC is most likely to:
Answer:
Explanation:
NEW QUESTION 24
Company A is planning to acquire Company B.
Company A's managers think they can improve the performance of Company B to the extent that its own P/E ratio should be applied to Company B's earnings.
Relevant Data:
What is the expected synergy if the acquisition goes ahead?
Give your answer to the nearest $ million.
$ ? million
- A. 8, 8000000
- B. 7, 8000000
Answer: A
NEW QUESTION 25
A company aims to increase profit before interest and tax (PBIT) each year.
The company reports in A$ but has significant export sales priced in B$.
All other transactions are priced in A$.
In 20X1, the company reported:
In 20X2, the only changes expected are:
* An increase in export prices of 10%, but no change to units sold.
* A rise in the value of the B$ to A$/B$ 2.500 (that is, A$ 1 = B$ 2.5) Is it likely that the company would still meet its objective to grow PBIT between 20X1 and 20X2?
- A. Yes, PBIT would increase by A$ 48 million.
- B. No, PBIT would fall by A$ 48 million.
- C. Yes, PBIT would increase by A$ 150 million.
- D. No, PBIT would fall by A$ 150 million.
Answer: B
NEW QUESTION 26
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