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CIMA Strategic F3 Question # 111 Topic 12 Discussion

F3 Exam Topic 12 Question 111 Discussion:
Question #: 111
Topic #: 12

Company U has made a bid for the entire share capital of Company B.

Company U is offering the shareholders in Company B the option of either a share exchange or a cash alternative.

 

Advise the shareholders in Company B which THREE of the following would be considered disadvantages of accepting the cash consideration?
A.

Cash consideration is certain whereas Company U's future share price performance is uncertain.

B.

Interest rates on deposit accounts are currently at a historic low and are expected to remain low.

C.

Company U is not expected to change its dividend policy post-acquisition.

D.

Taxation is payable on realised capital gains.

E.

There will be no opportunity to participate in the future economic success of Company U.

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Actual exam question for CIMA F3 exam by Juno5214 at May 3, 2026, 8:50:29 AM

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