CIMA F3 Question Answer
Company AD is planning to acquire Company DC. It is evaluating two methods of structuring the terms of the bid, which will be ether a debt-funded cash offer or a share exchange
The following Information is relevant
• The two companies are of similar size and in related industries
• AB's gearing ratio measured as debt to debt plus equity, is currently 30% based on market values. This Is the company's optimum capital structure set to reflect the risk appetite of shareholders.
• The combined company is expected to generate savings and synergies
Which THREE of the following are advantages to AB's shareholders of a debt-funded cash offer compared with a share exchange?
CIMA F3 Summary
- Vendor: CIMA
- Product: F3
- Update on: Jul 29, 2025
- Questions: 435
