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CIMA Financial Strategy F3 Question # 50 Topic 6 Discussion

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CIMA Financial Strategy F3 Question # 50 Topic 6 Discussion

F3 Exam Topic 6 Question 50 Discussion:
Question #: 50
Topic #: 6

Company YZZ has made a bid for the entire share capital of Company ZYY

Company YZZ is offering the shareholders in Company ZYY the option of either a share exchange or a cash alternative

Which THREE of the following would be considered disadvantages of accepting the cash consideration for the shareholders of Company ZYY?
A.

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

B.

Taxation is payable on realised capital gains.

C.

Company YZZ Is not expected to change *s dividend policy post-acquisition

D.

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

E.

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

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Actual exam question for CIMA F3 exam by Orin86261 at Aug 3, 2025, 12:00:00 AM

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