Accountant Strategic Case Study - CIMA-SCS Exam Practice Test
- Pay fixed sum per share to each LHD shareholder
- Would require Daistruk to raise finance unless under R$32m they currently hold
- Could impact gearing
- Easy to understand, most transparent and obvious
- Would require Daistruk to raise finance unless under R$32m they currently hold
- Could impact gearing
- Easy to understand, most transparent and obvious
Correct Answer: A
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- Guard against improper use of data
- Need integrity to support completeness, accuracy and timeliness of processing
- Integrity needed to prepare reliable financial info
- Need integrity to support completeness, accuracy and timeliness of processing
- Integrity needed to prepare reliable financial info
Correct Answer: D
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- Costs to Daistruk paying in another currency would decrease as R$ worth more
Correct Answer: C
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- Technological factors
- Environmental issues
- Social issues
- Employees, Management
- Materials
- Environmental issues
- Social issues
- Employees, Management
- Materials
Correct Answer: D
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- Investors are indifferent between receiving dividends now and having cash reinvested internally in projects with nil NPV
- If positive NPV = will increase shareholder wealth therefore don't care about dividends
- If positive NPV = will increase shareholder wealth therefore don't care about dividends
Correct Answer: B
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- Use net assets as basis
- Difficult to apply to businesses with high intangible assets
- Useful when valuing capital intensive businesses (not useful in service)
- Avoids need to forecast future earnings or cashflows
- Difficult to apply to businesses with high intangible assets
- Useful when valuing capital intensive businesses (not useful in service)
- Avoids need to forecast future earnings or cashflows
Correct Answer: D
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- Additional interest paid to bank for changing to fixed from floating
- Should do what if analysis to measure if worth it
- Rates may not rise so no point changing
- Transparency risk = Swaps are derivatives so need to account for them properly so may need to outsource specialist
- Should do what if analysis to measure if worth it
- Rates may not rise so no point changing
- Transparency risk = Swaps are derivatives so need to account for them properly so may need to outsource specialist
Correct Answer: B
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- Issue new shares and give them to acquired company shareholders in exchange for acquired company shares
- Could be 1-1 depending on valuation
- Could be 1-1 depending on valuation
Correct Answer: A
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