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CIMA CIMAPRA19-F03-1 (F3 Financial Strategy) Certification Exam is an excellent opportunity for finance professionals to enhance their skills and knowledge in financial management. It is a globally recognized certification that can open up many career opportunities in finance and accounting. F3 Financial Strategy certification exam is designed to assess the candidate's ability to develop and implement financial strategies in an organization, which is a critical skill for any finance professional.
CIMAPRA19-F03-1 exam covers a wide range of topics related to financial strategy, including financial analysis, investment decisions, risk management, and capital structure. F3 exam is divided into two sections: Section A consists of objective test questions while Section B is a case study that requires candidates to apply their knowledge and skills to a real-life scenario. F3 exam is three hours long, and candidates are required to score at least 50% in each section to pass the exam.
Reference: https://planner.cimaglobal.com/proqual/2019/strategic/F3
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CIMA F3 Exam Syllabus Topics:
| Section | Weight | Objectives |
| Sources of Long-Term Finance | 25% | - Equity finance
- 1. Cost of equity and capital structure theories
- 2. Types of equity and issue methods
- Debt and hybrid finance
- 1. Leasing, convertibles, and warrants
- 2. Types of debt, terms, and covenants
- Optimal capital structure
- 1. Impact of gearing on risk and return
- 2. Practical determinants of capital structure
|
| Financial Policy Decisions | 15% | - Strategic financial objectives and governance
- 1. Agency theory and stakeholder interests
- 2. Role of financial strategy in overall corporate strategy
- Dividend and distribution policy
- 1. Practical considerations and constraints
- 2. Theories of dividend relevance
|
| Business Valuation | 20% | - Valuation methods
- 1. Asset-based, earnings-based, cash flow-based
- 2. Relative valuation and market multiples
- Pricing and negotiation
- 1. Determining offer price and terms
- 2. Post-transaction value creation
- Valuation concepts and purposes
- 1. Valuation for mergers, acquisitions, and disposals
- 2. Valuation for listing or equity issuance
|
| Financial Risk Management | 15% | - Risk mitigation and hedging strategies
- 1. Internal controls and risk policy frameworks
- 2. Use of derivatives: forwards, futures, swaps, options
- Types and sources of financial risk
- 1. Credit and liquidity risk
- 2. Interest rate, foreign exchange, commodity risk
- Risk measurement and assessment
- 1. Value-at-Risk, duration, gap analysis
|
| Investment Appraisal and Decisions | 25% | - Risk analysis in investment decisions
- 1. Sensitivity, scenario, and simulation analysis
- 2. Cost of capital estimation and adjustment
- Advanced investment appraisal techniques
- 1. Discounted cash flow, NPV, IRR, MIRR
- 2. Adjusted present value and real options
|