CIMA F3 Formula Sheet
The key formulas for CIMA F3 (Financial Strategy) on a single A4 page, free to download and print. Built to the paper's current examinable scope.
F3 Formula Sheet · PDF · 1 page · A4 · print-ready
Download the F3 formula sheetUpdated 25 September 2026: the sheet has been re-typeset with proper maths symbols. If you printed an earlier copy, please download it again.
The formulas on the F3 sheet
The full sheet, reproduced as text so you can revise on screen. Last checked September 2026. Spotted an error? Report it and it will be corrected.
Cost of Capital
- Cost of equity (CAPM) = Rf + Beta × (Rm − Rf)
- Cost of equity (dividend growth) = [D0 × (1+g) ÷ P0] + g
- Cost of debt (irredeemable, post-tax) = Interest × (1 − Tax rate) ÷ Market value
- WACC = (E/(E+D) × Ke) + (D/(E+D) × Kd × (1−T))
Dividend Growth & Valuation
- Sustainable growth rate (g) = Retention ratio × ROE
- Share price (Gordon growth) = D0 × (1+g) ÷ (Ke − g)
Business Valuation
- P/E method: Value = Earnings × P/E ratio
- Dividend yield method: Value = Total dividend ÷ Dividend yield
- EV/EBITDA method: Enterprise value = EBITDA × EV/EBITDA multiple
Rights Issues
- Theoretical ex-rights price (TERP) = (Value of shares before + Cash raised) ÷ Total shares after
Modigliani & Miller (with tax)
- Value of geared firm = Value of ungeared firm + (Tax rate × Value of debt)
- MM's tax shield: financial risk increases but the tax benefit of debt raises value
Capital Structure
- Interest cover = PBIT ÷ Interest expense
- Gearing (debt to equity, market values) = Market value of debt ÷ Market value of equity × 100
Foreign Exchange
- Forward rate (IRP) = Spot rate × (1 + interest rate quote currency) ÷ (1 + interest rate base currency)
- PPP: higher-inflation currency expected to weaken ÷ trade at a forward discount
How to use it
A formula sheet is a revision aid, not a substitute for practice. Reading formulas builds recognition; applying them under time pressure builds recall, and it's recall the exam tests. The most effective way to use this sheet is alongside questions: attempt a question first, then check the sheet only when you're stuck, rather than working with it open in front of you.
Print it and keep it beside you while you work through F3 questions. Once you stop reaching for it, you know the formulas are in place.
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This sheet is an original compilation of standard formulas mapped to CIMA F3's current examinable scope. It is a revision aid only and is not a substitute for the official formulae and rates provided in your exam. Looking for another paper? See all CIMA formula sheets. GoQualified is not affiliated with CIMA.