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Learning guide CIMA F3: Financial Strategy Exam

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CIMA F3 Exam Syllabus Topics:

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