CIMA Exam CIMAPRA19-F03-1 Topic 6 Question 86 Discussion

Actual exam question for CIMA's CIMAPRA19-F03-1 exam

Question #: 86
Topic #: 6

[All CIMAPRA19-F03-1 Questions]

Ais a listed company. Its shares trade on a stock market exhibiting semi-strong form efficiency.

Which of the following is most likely to increase thewealth of A's shareholders?

AAnnouncing that a project will be undertaken generating a positive net present value.

BAnnouncing that the final dividend willremain unchanged from the previous 3 years.

CAnnouncing that a non-current asset will be revalued in the statement of financial position.

DAnnouncing that inventory will be impaired.

Show Suggested Answer

Suggested Answer: A, B, D

by Leanora at May 13, 2024, 07:13 PM

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Gabriele

1 months ago

Clearly, the correct answer is the one that involves the most financial jargon. That's how you know it's the right choice.

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Audria

15 days ago

A) Announcing that a project will be undertaken generating a positive net present value.

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Trina

1 months ago

Ah, the old 'semi-strong form efficiency' trick question. Gotta love these exam curveballs!

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Gregoria

3 days ago

C) Announcing that a non-current asset will be revalued in the statement of financial position.

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Louis

16 days ago

B) Announcing that the final dividend will remain unchanged from the previous 3 years.

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Blair

1 months ago

A) Announcing that a project will be undertaken generating a positive net present value.

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Solange

2 months ago

Impairment of inventory? That's just a fancy way of saying 'we messed up our purchases.' Not a winner.

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Timmy

26 days ago

C) Announcing that a non-current asset will be revalued in the statement of financial position.

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Stefania

2 months ago

B) Announcing that the final dividend will remain unchanged from the previous 3 years.

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Amber

2 months ago

A) Announcing that a project will be undertaken generating a positive net present value.

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Lenora

2 months ago

Revaluing a non-current asset? That's just accounting trickery, not actual value creation.

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Louisa

2 months ago

Keeping the dividend unchanged? Yawn. That's not going to move the needle at all.

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Denny

27 days ago

User 2: Agreed, that would definitely increase the wealth of A's shareholders.

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Viola

2 months ago

User 1: I think announcing a project with positive net present value is the way to go.

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Tequila

2 months ago

I see your points, but I think option B is also a good choice. Keeping the dividend unchanged can signal stability and attract more investors, ultimately increasing shareholder wealth.

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Willodean

2 months ago

Announcing a project with positive NPV is definitely the way to go! That's a no-brainer for increasing shareholder wealth.

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Eleonore

19 days ago

User 4: Absolutely, that would be a great way to boost shareholder wealth.

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Tracey

20 days ago

User 3: Yeah, it's a smart move to undertake a project with a positive net present value.

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Luis

23 days ago

User 2: I agree, that would definitely increase the wealth of A's shareholders.

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Mammie

1 months ago

User 1: Announcing a project with positive NPV is definitely the way to go! That's a no-brainer for increasing shareholder wealth.

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Leigha

2 months ago

I disagree, I believe option C is the most likely to increase wealth. Revaluing a non-current asset can lead to higher asset values and ultimately increase shareholder wealth.

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Thora

2 months ago

I think option A is the best choice. It will increase the wealth of shareholders by generating positive net present value.

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