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Some people study on a computer, some prefer a mobile phone — ExamPrepAway meets both. The F3 materials support almost any electronic device: printable PDF, Windows test engine, and an online version that runs in any browser. The same 435 practice questions for the CIMA F3 Financial Strategy follow you everywhere.

CIMA F3 Exam Syllabus Topics:

SectionWeightObjectives
Topic 1: Sources of Long-Term Finance25%- Debt and hybrid finance
  • 1. Leasing, convertibles, and warrants
    • 2. Types of debt, terms, and covenants
      - Equity finance
      • 1. Types of equity and issue methods
        • 2. Cost of equity and capital structure theories
          - Optimal capital structure
          • 1. Impact of gearing on risk and return
            • 2. Practical determinants of capital structure
              Topic 2: Financial Risk Management15%- Risk measurement and assessment
              • 1. Value-at-Risk, duration, gap analysis
                - Risk mitigation and hedging strategies
                • 1. Use of derivatives: forwards, futures, swaps, options
                  • 2. Internal controls and risk policy frameworks
                    - Types and sources of financial risk
                    • 1. Credit and liquidity risk
                      • 2. Interest rate, foreign exchange, commodity risk
                        Topic 3: Financial Policy Decisions15%- 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
                                Topic 4: Business Valuation20%- Pricing and negotiation
                                • 1. Determining offer price and terms
                                  • 2. Post-transaction value creation
                                    - Valuation concepts and purposes
                                    • 1. Valuation for listing or equity issuance
                                      • 2. Valuation for mergers, acquisitions, and disposals
                                        - Valuation methods
                                        • 1. Asset-based, earnings-based, cash flow-based
                                          • 2. Relative valuation and market multiples
                                            Topic 5: Investment Appraisal and Decisions25%- Advanced investment appraisal techniques
                                            • 1. Discounted cash flow, NPV, IRR, MIRR
                                              • 2. Adjusted present value and real options
                                                - Risk analysis in investment decisions
                                                • 1. Cost of capital estimation and adjustment
                                                  • 2. Sensitivity, scenario, and simulation analysis

                                                    F3 Exam FAQs: The Honest Answers

                                                    The CIMA F3 Financial Strategy blueprint is divided into 5 domains, headlined by Financial Risk Management (15%), Investment Appraisal and Decisions (25%), and Financial Policy Decisions (15%). The full weighted outline is in the syllabus section above — our materials are revised against it, and your study hours should follow it too.

                                                    For the CIMA F3 Financial Strategy, CIMA points candidates toward these resources:

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                                                    Completion of CIMA Operational and Management levels; or relevant exemptions

                                                    Vendor rules change periodically, so before booking, confirm the current criteria on the official CIMA exam page.

                                                    You can schedule the CIMA F3 Financial Strategy through the official channels below:

                                                    One note for scheduling: the F3 exam is delivered Computer-based; available at Pearson VUE test centres or online remote proctoring.

                                                    The F3 exam — full name F3 Financial Strategy — is CIMA's certification exam for professionals working with its technologies; passing it awards the CIMA Professional Qualification - Strategic Level certification, a credential at the Strategic / Professional level. It is the kind of vendor-issued proof employers can compare across candidates, which is exactly why it stays in demand. It also leads naturally toward CIMA E3 Strategic Management, CIMA P3 Risk Management, CIMA Strategic Case Study, CGMA Designation.

                                                    CIMA F3 Financial Strategy Sample Questions:

                                                    A listed company plans to raise $350 million to finance a major expansion programme.
                                                    The cash flow projections for the programme are subject to considerable variability.
                                                    Brief details of the programme have been public knowledge for a few weeks.
                                                    The directors are considering two financing options, either a rights issue at a 20% discount to current share price or a long term bond.
                                                    The following data is relevant:

                                                    The company's share price has fallen by 5% over the past 3 months compared with a fall in the market of 3% over the same period.
                                                    The directors favour the bond option.
                                                    However, the Chief Accountant has provided arguments for a rights issue.
                                                    Which TWO of the following arguments in favour of a right issue are correct?

                                                    • A. The recent fall in the share price makes a rights issue more attractive to the company.
                                                    • B. The administrative costs of a rights issue will be lower.
                                                    • C. The rights issue will lead to less pressure on the operating cash flows of the programme.
                                                    • D. The WACC will decrease assuming Modigliani and Miller's Theory of Capital Structure without taxes applies.
                                                    • E. The issue of bonds might limit the availability of debt finance in the future.
                                                    Reveal Solution  Discussion  0

                                                    Correct Answer: C,E  🗳️

                                                    A company's current earnings before interest and taxation are $5 million.
                                                    These are expected to remain constant for the forseeable future.
                                                    The company has 10 million shares in issue which currently trade at $3.60.
                                                    It also has a $10 million long term floating rate loan.
                                                    The current interest rate on this loan is 5%.
                                                    The company pays tax at 20%.
                                                    The company expects interest rates to increase next year to 6% and it's Price/Earnings (P/E) ratio to move to
                                                    9.5 times by the end of next year.
                                                    What percentage reduction in the share price will occur by the end of next year if the interest rate increase and the P/E movement both occur?

                                                    • A. Reduction of 7%
                                                    • B. Reduction of 0%
                                                    • C. Reduction of 1%
                                                    • D. Reduction of 5%
                                                    Reveal Solution  Discussion  0

                                                    Correct Answer: A  🗳️

                                                    A company financed by equity and debt can be valued by discounting:

                                                    • A. free cash flow before interest at the cost of equity.
                                                    • B. free cash flow after interest at WACC.
                                                    • C. free cash flow after interest at the cost of equity.
                                                    • D. free cash flow before interest at WACC.
                                                    Reveal Solution  Discussion  0

                                                    Correct Answer: D  🗳️

                                                    A consultancy company is dependent for profits and growth on the high value individuals it employs.
                                                    The company has relatively few tangible assets.
                                                    Select the most appropriate reason for the net asset valuation method being considered unsuitable for such a company.

                                                    • A. It does not account for the intangible assets.
                                                    • B. It accounts for intangible assets at net realisable value.
                                                    • C. It accounts for the intangible assets at historical value.
                                                    • D. It does not account for tangible assets.
                                                    Reveal Solution  Discussion  0

                                                    Correct Answer: A  🗳️

                                                    A company which is forecast to experience a strong growth in its profitability is evaluating a potential bond issue.
                                                    Which of the following changes in corporate income tax and in bond yields would make the bond issue more attractive to the company?

                                                    • A. A decrease in corporate tax and an increase in bond yields.
                                                    • B. An increase in corporate tax and an increase in bond yields.
                                                    • C. An increase in corporate tax and a decrease in bond yields.
                                                    • D. A decrease in corporate tax and a decrease in bond yields.
                                                    Reveal Solution  Discussion  0

                                                    Correct Answer: A  🗳️

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