CIMAPRA19-F03-1最も有効な質問と解答で勉強

A company wishes to raise new finance using a rights issue. The following data applies:
* There are 20 million shares in issue with a market value of $6 each
* The terms of the rights will be 1 new share for 4 existing shares held
* After the rights issue, the theoretical ex-rights price (TERP) will be $5.75 Assuming all shareholders take up their rights, how much new finance will be raised ?
Give your answer to one decimal place.

Extracts from a company's profit forecast for the next financial year as follows:

Since preparing the forecast, the company has decided to return surplus cash to shareholders by a share repurchase arrangement.
The share repurchase would result in the company purchasing 20% of the 1,250 million ordinary shares currently in issue and canceling them.
Assuming the share repurchase went ahead, the impact on the company's forecast earnings per share will be an increase of:

• A. $0.200
• B. $0.100
• C. $0.175
• D. $0.125

A company has stable earnings of S2 million and its shares are currently trading on a price earnings multiple
{PIE) of 10 times. It has10 million shares in issue.
The company is raising S4 million debt finance to fund an expansion of its existing business which is forecast to increase annual earnings straight away by 25% and then remain at that level for the foreseeable future. The corporation tax rate is 20%. It is expected that the P/E will reduce to 8 times over the next year.
What is the most likely change in shareholder wealth resulting from this plan?

• A. Shareholder wealth will increase by $3.2 million.
• B. Shareholder wealth will increase by $4 million.
• C. Shareholder wealth will increase by $5 million
• D. No change in shareholder wealth.

Company M plans to bid for Company J. Company M has 20 million shares in issue and a current share price of $10.00 before publicly announcing the planned takeover. Company J has 10 million shares in issue and a current share price of $4.00.
The directors of Company M are considering an all-share bid of 1 Company M shares for 2 Company J shares.
Synergies worth $20m are expected from the acquisition.
What is the likely change in wealth for Company M's shareholders (in total) if the bid is accepted?
Give your answer to the nearest $ million.
$ ? million

• A. 8
• B. 6

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