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Format of the CIMA F3: Financial Strategy Exam

  • Language: English
  • Number of questions: 60
  • Format: Numerous choices, multiple responses
  • Passing score: 70 percent
  • Length of Examination: 90 minutes

Reference: https://planner.cimaglobal.com/proqual/2019/strategic/F3

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CIMA F3 Exam Syllabus Topics:

SectionWeightObjectives
Topic 1: Business Valuation40%- Impairment testing and value management
- Mergers, acquisitions and divestments
  • 1. Valuation of target companies
  • 2. Financing and post-deal integration
- Investment appraisal
  • 1. Adjusted present value (APV)
  • 2. NPV, IRR, payback, discounted payback
- Valuation methods
  • 1. Asset-based valuation
  • 2. Discounted cash flow (DCF)
  • 3. Relative valuation: P/E, EV/EBITDA
Topic 2: Sources of Long-term Funds25%- Debt finance
  • 1. Leasing and sale-and-leaseback
  • 2. Bonds, loans, convertible instruments
- Capital structure theories and WACC
  • 1. Cost of capital calculation
  • 2. Modigliani-Miller propositions
- Equity finance
  • 1. Flotation and listing methods
  • 2. Ordinary shares, preference shares, rights issues
- Dividend policy and distribution strategies
Topic 3: Financial Policy Decisions15%- Strategic financial objectives and stakeholder impact
  • 1. Financial objective setting
  • 2. ESG and ethical influences
  • 3. Taxation and regulatory framework
- Interaction between investment, financing and dividend decisions
Topic 4: Financial Risks20%- 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
- Types of financial risk
  • 1. Foreign exchange risk
  • 2. Credit and liquidity risk
  • 3. Interest rate risk

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