CS Executive Financial and Strategic Management PYQ December 2019: Question Paper and Available Answers
CS Executive
Financial and Strategic Management
PYQS Series
December 2019
100 Questions Indexed
ICSI Examination Archive & Suggested Answers: This directory contains indexed questions from the paper for CS Executive Financial and Strategic Management PYQS (December 2019). Open the source paper and available answers. Older sessions follow the syllabus and statutory provisions applicable to their examination year.
Indexed questions
- Which of the following is true regarding financial decisions of a firm ?
- What will be the maturity value of a sum of ₹18,000 invested today at the rate of 5% p.a. for 10 years ?
- The competing objectives of financial management have been :
- Which of the following is an example of systematic risk in stocks ?
- Treasury Bills are issued by:
- Given that the effective rate of interest is 9.31% p.a., what is the nominal rate of interest p.a., if compounding is carried out quarterly?
- Decisions related to the mix of debt and equity in the balance sheet best relates to which of the following?
- Which of the following are not applicable in the case of Payback period calculation of investment appraisal ?
- The Security Market Line shows the relationship between :
- The cost of retained earnings is equal to :
- Decision rules based on Benefit Cost Ratio (BCR) and Net Benefit Cost Ratio (NBCR) criteria implies:
- An equity share with beta greater than unity would be called :
- An interest rate that has been annualized using compound interest is termed as:
- The risk aversion of investors can be measured by:
- If a firm declared 25% dividend on share of Face Value of ₹10, its growth rate is 5%, and if the rate of capitalization is 12%, its expected price would be ₹__________.
- Capital Budgeting Decisions are part and parcel of:
- Diversification can eliminate risk, if the securities of a portfolio are:
- __________ is the present value of an asset, if the annual cash inflow is ₹1,000 per year for next 5 years and the discount rate is 15%.
- An investor purchases an 8% bond having a face value of ₹1,000 and maturity of 5 years for ₹900. A year later he sells it for ₹960 in the market. The holding period gain of the inv
- The effective rate of interest for a sum of money compounded quarterly is 12.55%. What is its nominal yield ?
- The price of a share is ₹100 today. It grows to ₹125 at the end of the 1st year, ₹187.5 at the end of the 2nd year and ₹243.75 at the end of the 3rd year. What is the average rate
- What is the present value of an annuity of ₹15,000 starting immediately (t=0) and paying another 5 annual instalments? Assume a discounting rate of 12%.
- Which of the following does not contribute to systematic risk ?
- Varun Ltd. is issuing 1 Lakh 12% Irredeemable preference shares of the face value of ₹100 each. If the floatation cost is ₹2 per share, what is the cost of these Preference Shares
- If an investment of ₹3,00,000 pays ₹25,000 p.a. in perpetuity, what is the Net Present Value, if the interest rate is 9% ?
- Which approach in capital structure argues that the overall capitalization rate and the cost of debt remains constant for all degrees of leverage, as the same is offset by an incre
- An arrangement where a bank allows a borrower to overdraw up to a certain limit for working capital financing is known as:
- Funds represented by cheques which have been issued, but which have not been debited from bank is technically referred to as :
- The Net Working Capital (NWC) of a firm is ₹14 Lakhs. It purchased ₹30 Lakhs worth of raw materials on credit, issued 7% debentures for ₹20 Lakhs, and purchased a machine for ₹18 L
- A firm has a Degree of Operating Leverage (DOL) of 5 and Degree of Financial Leverage (DFL) of 4. The interest burden is ₹300 Lakhs, variable cost as a % to sales is 75%, and the e
- ABC analysis is useful for:
- Consider the following factors – Gross operating cycle - 80 days; Net operating cycle - 55 days; Raw material holding period - 40 days, Conversion period - 2 days; Finished goods h
- MNC expects its sales to increase by 10% from the current year level of ₹5 million. With a Net Profit Margin of 8% and a pay-out ratio of 30%, what financing for the next year will
- If a company acquired a helicopter for its top management for a certain period on a fixed payment, which of the following will be true regarding leverage ?
- Which of the following is not a valid assumption of MM approach to capital structure?
- Which of the following will not have an impact on a firm's treasury position ?
- A firm has a DOL of 6 at a certain production level. If Sales of the firm rise by 1%, it implies that :
- Determination of "safety stock" requires a trade-off between :
- Which of the following is not a valid assumption of EOQ model ?
- Which of the following investment decisions is required to be taken for a stock, if its intrinsic value is greater than its market value ?
- Monthly demand for a raw material is 150 units. Ordering cost per order is ₹8 and annual carrying cost per unit is ₹2. Economic Order Quantity (EOQ) under the above circumstances w
- Earnings per share (EPS) is equal to:
- Interest coverage ratio of 6 indicates :
- Debtors turnover ratio reflects :
- Consider the following data and compute the total sales amount : (i) Closing balance of receivables : ₹30 lakhs (ii) Opening balance of receivables : ₹20 lakhs (iii) Average collec
- If the expected dividend is less than the actual dividend paid, the rational expectation approach suggests that the :
- The EOQ for a firm is 7200 units. The minimum order size stipulated by the supplier is 9000 units for utilizing a cash discount on the purchase price. The annual usage of the mater
- Walter model can be applied only to those companies which :
- Cash Management Model has been propounded by:
- The Weighted Average Cost of Capital computations:
- The liability side of Shivanee Ltd.'s Balance Sheet shows Equity capital ₹25 Lakhs and Retained Earnings ₹50 Lakhs. Face value of its share is ₹100 each and market value is ₹300 ea
- The Capital Structure of Neel Ltd. is as under: Equity + Reserves & Surplus | ₹200 Lakhs 10% Preference Shares | ₹50 Lakhs 12% Term Loans | ₹150 Lakhs What should be the approx
- ABC Limited books of accounts show profit from operation (EBDIT) at ₹500 Lakhs, it paid 12% on a debt of ₹1,000 Lakhs, Depreciation is ₹100 Lakhs and Tax 35%. Profit after Tax will
- As you increase the number of stocks in a portfolio, the systematic risk is likely to :
- Current ratio is 4:1. Net Working Capital is ₹30,000. Find the amount of Liquid assets if value of stock is ₹8,000.
- A sum of ₹50,000 is invested @ 12% p.a. for 6 years. What will be the present value of its maturity value, assuming a required rate of return of 10% ?
- The cost of capital of a firm is 12% and its expected Earning Per Share at the end of the year is ₹20. Its existing payout ratio is 25%. The company is planning to increase its pay
- Mr. A is planning to buy a security and is in a dilemma regarding price to be paid. For this he is relying on the required rate of return on the security. Help him out to calculate
- Firm A is considering a project A. The project involves cash outlay of ₹50,000 (t=0), working capital outlay of ₹20,000 (t=2), and is expected to generate Cash Flow After Tax (CFAT
- Economic Order Quantity (EOQ) determines:
- A corporate strategy can be defined as:
- A Strategic Business Unit (SBU) is defined as a division of an organisation:
- Total Quality Management was initially applied in:
- How often should strategic management activities be performed ?
- What is six-sigma risk/return level?
- Which "S" is not part of McKinseys 7-S Framework ?
- Under the BCG growth-share matrix, low share, high-growth businesses or products are called:
- Ansoff's matrix is useful for:
- Which category of benchmarking involves multi-site comparison of process and performance ?
- Which of the following answers to the question : 'Where does the organisation aspire to be in the future?'
- Which of the following is a force in the Porter's five forces model of industry attractiveness ?
- The principles of the business process re-engineering (BPR) approach do not include:
- What does Cash Cow symbolize in BCG matrix ?
- What are focus strategies ?
- The BCG matrix is based on:
- Which of these are characteristics of matrix structure?
- Which is the term used in Ansoff's matrix for increasing market share with existing products in existing markets ?
- Successful differentiation strategy allows the company to :
- What are enduring statements of purpose that distinguish one business from other similar firms ?
- Typically profits are highest in which stage of industry life-cycle?
- Blue Ocean Strategy is concerned with :
- The product-market matrix comprising strategies of penetration, market development, product development and diversification was first formulated by:
- Which of the following market structures would be commonly identified with FMCG products ?
- Directional Policy Matrix is same as :
- Outsourcing is the :
- The existence of price-wars in the airline industry in India indicates that :
- What type of organisational structure do most small businesses follow ?
- Which section of the SWOT Matrix involves matching internal strengths with external opportunities ?
- What can be defined as the art and science of formulating, implementing and evaluating cross-functional decisions that enable an organisation to achieve its objectives ?
- The emphasis on product design is very high, the intensity of competition is low, and the market growth rate is low in the __________ stage of the industry life-cycle.
- The most probable time to pursue a harvest strategy is in a situation of __________.
- Vertical integration may be beneficial when:
- Conglomerate diversification is another name for which of the following ?
- When two organizations combine to increase their strengths and financial gains, it is called:
- Financial objectives involve all of the following, except:
- Which of these basic questions should a vision statement answer ?
- A firm successfully implementing a differentiation strategy would expect:
- The concept of 'Core Competence' has been advocated by:
- Which of the following can be said to be the strategy followed in TOWS approach ?
- Porter's Generic strategies include:
How to Prepare for CS Executive Financial and Strategic Management
Use past questions to practise the paper format and review available answers. Check the current syllabus, applicable law and examination duration before attempting a timed paper.