Pre-Summer Special Limited Time 70% Discount Offer - Ends in 0d 00h 00m 00s - Coupon code: validbest

Discussions
  1. Home
  2. Discussions
  3. CIMA
  4. CIMA Strategic
  5. F3 Discussions
  6. F3 Exam Topic 12 Question 113 Discussion
 CIMA Discussions
Exam F3 All Questions
Exam F3 All Questions

View all questions & answers for the F3 exam

Go to Exam

CIMA Strategic F3 Question # 113 Topic 12 Discussion

F3 Exam Topic 12 Question 113 Discussion:
Question #: 113
Topic #: 12

A company's Board of Directors is assessing the likely impact of financing new projects by using either debt or equity finance.

The impact of using debt or equity finance on some key variables is uncertain.

 

Which THREE of the following statements are true?
A.

The use of equity finance reduces the company's overall financial risk.

B.

The use of equity finance will create pressure for increases in dividend per share in the future.

C.

The use of debt finance will always result in an increase in earnings per share.

D.

Retained earnings is the cheapest form of equity finance.

E.

The use of debt finance increases the cost of equity.

F.

The use of debt finance is always preferable to equity finance.

Get Premium F3 Questions
Actual exam question for CIMA F3 exam by Orion41483 at May 3, 2026, 1:07:34 PM

Contribute your Thoughts:


Chosen Answer:
This is a voting comment (?). It is better to Upvote an existing comment if you don't have anything to add.

Submit