CIMA : CIMAPRA19-F03-1 Questions & Answers

Last Updated: Aug 24, 2026

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CIMA CIMAPRA19-F03-1 Exam Syllabus Topics:

SectionWeightObjectives
Financial Risks20%- Types of financial risk
  • 1. Interest rate risk
  • 2. Foreign exchange risk
  • 3. Credit and liquidity risk
- Risk measurement and assessment
  • 1. Value-at-Risk, sensitivity analysis
- Risk reporting and governance
- Risk management techniques
  • 1. Derivatives: futures, forwards, swaps, options
  • 2. Hedging strategies
Sources of Long-term Funds25%- Capital structure theories and WACC
  • 1. Cost of capital calculation
  • 2. Modigliani-Miller propositions
- Debt finance
  • 1. Bonds, loans, convertible instruments
  • 2. Leasing and sale-and-leaseback
- Equity finance
  • 1. Flotation and listing methods
  • 2. Ordinary shares, preference shares, rights issues
- Dividend policy and distribution strategies
Financial Policy Decisions15%- Strategic financial objectives and stakeholder impact
  • 1. ESG and ethical influences
  • 2. Financial objective setting
  • 3. Taxation and regulatory framework
- Interaction between investment, financing and dividend decisions
Business Valuation40%- Impairment testing and value management
- Valuation methods
  • 1. Relative valuation: P/E, EV/EBITDA
  • 2. Asset-based valuation
  • 3. Discounted cash flow (DCF)
- Mergers, acquisitions and divestments
  • 1. Financing and post-deal integration
  • 2. Valuation of target companies
- Investment appraisal
  • 1. NPV, IRR, payback, discounted payback
  • 2. Adjusted present value (APV)

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