CORRECT TEXT
EF has redeemable 10% bonds which are currently trading at $94.00 for each $100 of nominal value. The bonds can be redeemed at par in five years' time. The corporate income tax rate is 22%.
The present value of the cash flows associated with $100 nominal value of these bonds at a discount rate of 7% is $9.28.
Calculate the post tax cost of debt.
Give your answer as a percentage to one decimal place.
%
A. 9.4, 9.3, 9.39, 9.40
CORRECT TEXT
ST acquired two financial investments in the year to 31 December 20X8. One of these investments was initially classified as held for trading, the other as available for sale. ST remeasured both investments at fair value at 31 December 20X8 in accordance with IAS 39 Financial Instruments: Recognition and Measurement. The resulting gains were calculated as follows: Gain on held for trading investment $50,000
Gain on available for sale investment $40,000
What was the value of the gain that ST presented in its other comprehensive income when it prepared its financial statements for the year to 31 December 20X8?
Give your answer to the nearest $000.
$ ? 000
A. 40, 40000
CORRECT TEXT
CD 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.
? %
A. 17.4, 17.42, 17.43, 17.40
CORRECT TEXT
CD commenced a construction contract on 1 April 20X9. The contract value was agreed at $100,000. CD had incurred $40,000 costs to date and estimated costs to completion were $50,000. At the year ended 31 December 20X9 this
contract was estimated to be 60% complete. CD adopted the provisions of IAS 11 Construction Contracts when preparing its financial statements for the year to 31 December 20X9.
What value should be included in CD's profit for the year ended 31 December 20X9 in respect of this contract?
Give your answer to the nearest whole number.
$ ?
A. 6000, 6
CORRECT TEXT
GH's financial statements show the following:
What is the value of the dividend received from the associate to be included in GH's consolidated statement of cash flows for the year?
Give your answer to the nearest $000.
$ ? 000
A. 300, 300000
CORRECT TEXT
A convertible bond with a nominal value of $100 can be redeemed at par in 5 years' time or be converted into 1 new equity share for every $5 of bond held.
The current equity share price is $3.50 and it is anticipated that this will grow at a rate of 7% per year.
What is the value of the conversion option of the bond in 5 years' time? Give your answer to two decimal places.
$ ?
A. 98.18, 98.17, 98.179, 98.178
CORRECT TEXT
Information extracted from JK's statement of financial position for the year ended 31 May 20X5 is as follows:
Calculate the gearing ratio (Debt/Equity measured as a percentage) at 31 May 20X5.
Give your answer to one decimal place.
? %
A. 58.4, 58, 58.44, 59, 58.5, 58.0
CORRECT TEXT
Calculate the exchange difference arising on the retranslation of goodwill on the acquisition in the consolidated statement of financial position of CD at 31 December 20X7.
Give your answer to the nearest $000.
$ ? 000
A. 14, 14000, 13636, 13637
MNO has calculated its return on capital employed ratio for 20X4 and 20X5 as 41% and 56% respectively. Taking each statement in isolation, which would explain the movement in the ratio between the 2 years?
A. In 20X5 the average interest rate on borrowing decreased compared to 20X4.
B. In 20X4 an onerous contract was provided for and this provision did not change in 20X5.
C. In 20X5 the increase in value of MNO's head office was reflected in the financial statements.
D. In 20X4 an unused building was sold at a price in excess of its carrying value.
CORRECT TEXT
CD reported a balance of $3,000,000 for property, plant and equipment in its individual financial statements at 31 December 20X8.
Calculate the value of the property, plant and equipment that will be included in CD's consolidated statement of financial position.
Give your answer to the nearest $000.
$? 000
A. 4481, 4481000, 4481481
Nowadays, the certification exams become more and more important and required by more and more enterprises when applying for a job. But how to prepare for the exam effectively? How to prepare for the exam in a short time with less efforts? How to get a ideal result and how to find the most reliable resources? Here on Vcedump.com, you will find all the answers. Vcedump.com provide not only CIMA exam questions, answers and explanations but also complete assistance on your exam preparation and certification application. If you are confused on your CIMAPRA19-F02-1 exam preparations and CIMA certification application, do not hesitate to visit our Vcedump.com to find your solutions here.