Cisco
CompTIA
ISC
EC-Council
EXIN
Fortinet
ITIL
Juniper
Microsoft
VMware
Avaya
SAP
Google
NVIDIA
Salesforce
Amazon
Palo Alto Networks
ISC2
Splunk
ServiceNow
All Vendors
  2. Home
  3. Exams
  4. CIMA
  5. CIMAPRA19-P03-1

CIMA CIMAPRA19-P03-1 Exam Questions
P3 Risk Management (Online) (Page 5 )

Updated On: 15-Feb-2026
Page 5 of 56
PDF with 275 Questions

Which THREE of the following are principles of good corporate governance according to the UK Corporate Governance Code?

  1. Leadership
  2. Reliability
  3. Remuneration
  4. Honesty
  5. Accountability

Answer(s): A,C,E



A US company has to pay £500,000 for a new machine.
You have the following information on currencies.
EUR 1 = £1.2300
EUR 1 = USD 1.6200
What is the cost of the machine in USD?
Give your answer to the nearest $.

  1. $658501, $658537

Answer(s): A



SDF has a variable rate loan of $100 million on which it is paying interest of LIBOR + 2%. SDF entered into a swap with CV bank to convert this to a fixed rate 7% loan. CV bank charges an annual commission of 0.3% for making this arrangement. Calculate the net payment from SDF to CV bank at the end of the first year if LIBOR was 3% throughout the year.
Give your answer in $ million, to one decimal place.

  1. See Explanation section for answer.

Answer(s): A

Explanation:

Answer(s): $2.3 million



The treasurer of IOK is considering entering into a money market hedge in order to hedge a payable.

Which of the following might be valid explanations for the use of a money market hedge for this purpose?

  1. There are no forward contracts available for the purchase of the payable currency using IOK's home currency.
  2. The timing of the payable does not permit the use of a forward contract.
  3. The relevant currency markets are very thinly traded and the treasurer believes that forward contracts are mispriced.
  4. A money market hedge is easier and less expensive to organise than a future or forward contract.
  5. Money market hedges can be unwound whereas positions in derivatives cannot.

Answer(s): A,B,C



A project requires a capital investment of £2.7million. The project will save £450,000 each year after taxation. Assume the savings are in perpetuity. The business risk of the venture requires a 15% discount rate. The company has to borrow £1million to finance the project at a rate of 9% and the net tax shield is 30%, the project supports debt which generates an interest tax shield of 0.30 x 0.09 x £1million, which is £27,000 per year in perpetuity.
Calculate the project's adjusted present value.

  1. £(30,000)
  2. 0
  3. £570,000
  4. £600,000

Answer(s): D






Post your Comments and Discuss CIMA CIMAPRA19-P03-1 exam dumps with other Community members:

Join the CIMAPRA19-P03-1 Discussion