Chartered Institute of Management Accountants (CGMA) · Strategic level
CIMA F3 Financial Strategy: mock exams and practice questions
243 original exam-style questions for CIMA F3 Financial Strategy, with full timed mock exams in the real format and an explanation for every answer. Free for everyone until 31 January 2027.
- 243practice questions
- 4syllabus areas
- 90 minutesfull mock, like the real exam
CIMA F3 exam format
90 minutes, computer-based objective test (60 questions). The pass mark is 70%.
| Section | Format | Marks |
|---|---|---|
| Objective test | 60 questions: multiple choice, multiple response and number entry | 60 |
| Total | 60 |
Syllabus areas covered
- A · Financial policy decisions39 questions
- B · Sources of long-term funds60 questions
- C · Financial risks48 questions
- D · Business valuation96 questions
Try 3 free CIMA F3 questions
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Sample question 1 · A · Financial policy decisions
The board of Velmora plc, a listed manufacturer of packaging materials, is reviewing its financial objectives. According to corporate finance theory, which of the following is the most appropriate primary financial objective for Velmora plc?
- A Maximise the wealth of its ordinary shareholders over the long term
- B Maximise reported earnings per share in each financial year
- C Maximise sales revenue growth, subject to a minimum level of profit
- D Minimise the weighted average cost of capital in each financial year
Show the answer
Answer: A. Shareholders own a listed company and bear its residual risk, so theory treats maximising shareholder wealth (the present value of future dividends and capital growth) as the primary financial objective. EPS targets, revenue growth and WACC minimisation are at best secondary objectives or measures, and each can conflict with value creation.
Sample question 2 · B · Sources of long-term funds
Corran plc is making a 1 for 4 rights issue at a subscription price of $3.20 per share. Its share price immediately before the issue goes ex-rights is $4.00. What is the theoretical ex-rights price (TERP)?
- A $3.36
- B $3.60
- C $3.80
- D $3.84
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Answer: D. TERP = (market value of existing shares + cash raised) / total shares after the issue.
For every 4 shares held: (4 x $4.00) + (1 x $3.20) = $19.20, spread over 5 shares.
TERP = $19.20 / 5 = $3.84
Sample question 3 · C · Financial risks
The spot rate is EUR 1 = USD 1.1000. Expected annual inflation is 3.5% in the US and 2.0% in the eurozone for the next two years. Using purchasing power parity, what is the expected spot rate in two years' time (USD per EUR 1)?
- A USD 1.1552
- B USD 1.1326
- C USD 1.1162
- D USD 1.0683
Show the answer
Answer: B. PPP: expected spot = current spot x [(1 + US inflation) / (1 + euro inflation)]^n
= 1.1000 x (1.035 / 1.020)^2 = USD 1.1326 per EUR 1
The dollar is expected to weaken against the euro because US inflation is higher.
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