FGH plans to issue a large number of shares to the public via an IPO. It is considering either an offer for sale at a fixed price or an offer for sale by tender.Which of the following would be an advantage to FGH of using the offer for sale by tender compared to the fixed price offer?
Answer(s): C
XY has in issue a 6% convertible bond which is redeemable at par or convertible into equity shares in one year's time. The conversion terms are 20 equity shares for each $100 of convertible bond. The conversion value in one year's time is expected to be $105 per $100 nominal of the bond based on the current share price of $5.25.Which of the following statements about the bond is correct?
Answer(s): B
CORRECT TEXTCD has 200,000 equity shares with a current market value of $2.50 each. The annual dividend of $0.50 a share is about to be paid.CD also has redeemable debt with a nominal value of $100,000. This is currently trading at $90 for each $100 of nominal value.The cost of equity is 20% and the post tax cost of debt is 6%.What is CD's weighted average cost of capital?Give your answer in % to one decimal place.
Answer(s): A
Which TWO of the following are TRUE in respect of preparing a consolidated statement of cash flows where there has been an acquisition of a subsidiary part way through the year?
Answer(s): A,C
Post your Comments and Discuss CIMA F2 exam with other Community members:
frencis Commented on December 24, 2024 the questions are so easy...is real Anonymous
Our website is free, but we have to fight against bots and content theft. We're sorry for the inconvenience caused by these security measures. You can access the rest of the F2 content, but please register or login to continue.