CS Executive Financial and Strategic Management PYQ December 2021: Question Paper and Available Answers
CS Executive
Financial and Strategic Management
PYQS Series
December 2021
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 2021). Open the source paper and available answers. Older sessions follow the syllabus and statutory provisions applicable to their examination year.
Indexed questions
- A company would like to have liquid resources for trasaction purposes, as a precautionary measure and for __________.
- Efficiency of production operations and the relationship between production cost and selling price is resulting of:
- The XYZ Co. Ltd. borrowed capital is NIL and entire capital block of ₹300 lakh is funded by owners. Earning Before Interest and Tax (EBIT) for the year @ 28.50%, applicable tax rat
- ABC Ltd. has borrowed capital of ₹100 lakh and rate of interest is 12%. Owners capital ₹400 lakh and EBIT for the year is 10% against the sales of ₹1200 lakh. Applicable tax rate i
- The goal of Economic Value Added (EVA) is to take into account the __________ in the company.
- The finance manager of the company can take care of duties such as: (1) Forecasting of sales (2) Raising funds (3) Managing funds (4) Managing board of directors meeting Correct co
- The capital budgeting techniques are : (1) Payback period (2) Average rate of return (3) Net present value (4) Internal rate of return (5) Profitability index Which of the above is
- The initial investment a project requires ₹5,00,000, the expected annual cash inflow is ₹90,000 for ten years. Determine the pay back period.
- The initial investment required for projects 'A' and 'B' is ₹1,00,000 each. The present value of future cash flows from the projects are ₹1,15,500 and ₹1,19,500 respectively. Calcu
- To determine the co-efficient of variation, the formula is:
- Profitability Index method gives due consideration to the __________.
- ABC Ltd. has estimated cash inflow of year 1, 2 and 3 as ₹500 lakh, 1200 lakh and 1500 lakh respectively. The probability of success is 0.70, 0.65 and 0.75 respectively. The PV fac
- A Ltd., informed Profit After Tax (PAT) ₹7,50,000. Interest expenses were ₹2,75,000, tax rate was 40%. What will be the Net Operating Income of A Ltd. ?
- The financial leverage can be arrived by using the formula:
- The financial breakeven point is:
- NM Co. Ltd., reported sales for the year 50 lakh and variable cost ratio is 57% and fixed cost of admin and selling and distribution as 9.50 and 4.80 and 3.90 lakh, respectively. T
- There are four approaches to capital structure decisions: (1) Net Income (2) Net Operating Income (3) __________ (4) __________
- Which of the followings are the type of capital structure ? (1) Horizontal (2) Polygon (3) Pyramid (4) Inverted Pyramid (5) Rhombus (6) Vertical
- The internal sources of long term finance are:
- A Ltd. Co. issued 6%, 2000 irredeemable debentures of ₹100 each @ 10% premium. The company falls in 50% tax bracket. Find out the cost of debenture after tax.
- A company has issued 10,000 equity shares of ₹100 each. Its current market price is ₹98 per share and the current dividend is ₹4.5 per share. The dividends are expected to grow at
- The cost of retained earnings are often taken as equal to the :
- Long term finance is required to finance :
- The capital structure of ABC Ltd. consists, debentures, preference share, equity shares and retained earnings. The weight of each security is 28.57%, 9.53%, 14.28% and 47.62% respe
- In case of agricultural and rurral development projects generally the prescribed IRR for viability is:
- Benefit cost ratio (BCR) is unviable when it is:
- Lending policy and appraisal norms by banks are decided by the __________.
- Which of the following is not a feature of Finance Lease ?
- Presently, units in Special Economic Zones (SEZs) enjoy __________% income tax exemptions on export income for first five years, __________% for the next five years thereafter and
- Cost escalation results in:
- Which one of the following is not an assumption of Walter's model ?
- When return on investment is equal to the market capitalization rate, the optimum payout ratio would be :
- A company earns ₹5 per share. The capitalization rate is 10% and rate of return on investment is 18%. What would be the value of share at optimum payout ratio ?
- A Ltd. has 20,000 shares of ₹100 each. The company is contemplating to declare a dividend of ₹5 per share at the end of the current year. The capitalization rate of the company is
- Determine the market price of a share of A Ltd. by using Gordon's Model. Given $k_{e}=12\%$, $E=20$, $r=12\%$, $b=60\%$.
- If a company is using constant payout ratio policy of dividend, the amount of dividend would:
- A company has sales of ₹20 crore and 40% of the sales is on credit. Expenses on credit collection is 1.50%. The company targets to reduce collection expenses by 40%. Calculate the
- The monthly requirement of raw material of A Ltd. is 1200 units, ordering cost is ₹400 per order and carrying cost is 13% of unit value of ₹150. EOQ units are:
- Negative working capital implies that :
- A company has Raw material holding period- 27 days; Conversion period-25 days; Finished goods holding period-28 days; Period of accounts receivables-20 days; Period of accounts pay
- Find out the average size of receivables if the goods are sold for ₹10,00,000 on a net 60 credit term with an assumption that 25% of the customers do not pay within the prescribed
- Which of the following statements is not true?
- According to Dow Jones theory, share prices demonstrate a pattern over :
- The term "ECMH" refers to :
- Double bottom formation chart represents :
- Which of the following are two major tools of technical analysis?
- Risk can be classified into :
- Which of the following is not a requirement for an efficient security market ?
- From the following calculate coefficient of correlation of x and y : Covariance between x and y = -8, Standard deviation of x = 2, Standard deviation of y = 4
- If the stocks are independent of each other, the correlation coefficient would be :
- Utility of the portfolio can be measured through:
- If the risk penalty is 4.50% and portfolio's expected return is 13%, what will be the utility of the portfolio ?
- Which of the following is not an assumption of CAPM?
- From the following calculate Enomic Value Added (EVA): Capital invested ₹ 50,000; operating profit after tax 20,000; opportunity cost is 10%.
- ABC Ltd. paid up share capital is 10 lakh of 2.00 lakh equity shares (Dividend paid @ 5% per equity) and 10% preference share capital 50 lakh. Income tax @ 40% and term loan from S
- Ravi and Sam invested in equity market ₹ 2.00 lakh each and Ravi invested in manufacturing sector and Sam invested in IT sector at the end of the year overall yield from manufactur
- GRI Co. Ltd., decided to invest in plant and machinery ₹ 650.00 lakh and life of asset estimated is 5 years. At the end of the fifth year estimated residual value 3.00 lakh and dis
- Das Co. Ltd., EBIT for the year 15 lakh interest @ 12.5% loan capital of 40 lakh and 13.75% loan capital of 30 lakh and soft loan interest @ 5.50% against loan capital of 75 lakh.
- AXN Co. Ltd., has two products X and Y. Y's selling price @ 120% of X and sales volume of 'X' as 150% of Y's sales of 3,00,000 units @ 90 per unit. The variable cost per unit 'X' a
- From the following information, calculate the expected rate of return of a portfolio: Risk free rate of interest 10% Expected return of market portfolio 16% Standard deviation of a
- Match the correct management theories of (1) Scientific management (2) Administrative (3) Bureaucratic (4) Relations (a) Henri Fayol's (b) Elton Mayo's (c) Frederic W. Taylor (d) M
- According to Theo Haimann "Staffing Pertains to recruitment, selection, development and ............"
- The direction is said to be all those activities which are designed to encourage the subordinate............
- Controlling measures, the deviation of actual performance from the :
- Which of the following is not a characteristic of controlling function of management?
- "Rule of thumb should be replaced by scientific analysis of work." The above principle was given by :
- Select the correct sequence of the four phases of strategic management process:
- A company secretary in today's era while discharging his or her professional obligations has to perform several roles; from the following list out the roles to be performed by a co
- The Professor Michael Porter's five forces factors are (1) Threat of new entry (2) Supplier power (3) Buyer power (4) ............ (5) ............
- Which of the following statements is not true ?
- The corporate finance manager should try to balance between ............ to ensure minimized risk and maximized profit.
- The dividend declaration is driving force to investors to invest more and positive sign of equity market.
- ............ is one of the implementing HR-Strategy.
- The UN Co. Ltd., took a policy decision that company's products will be converted as Eco Friendly products and this move is known as ............
- The Logistic is ............ to tactical decisions about transporting and ware-housing.
- Under Low-Cost strategy, the company fights ............ by selling its products at ............ prices.
- Which of the following is not correct for vision statement ?
- Match the following (1) Maxi-Maxi (i) Defensive (2) Maxi-Mini (ii) Competitive (3) Mini-Maxi (iii) Conservative (4) Mini- Mini (iv) Aggressive
- Indian Dairy Products market total size is ₹ 28,000 crore and XY Co. Ltd., dominating market share of ₹ 4,800 crore and AN Co. Ltd., having turnover of ₹ 428.50 crore. Find relativ
- The terms, build; hold; harvest; divest are closely linked with strategies of ............
- Dev Co. Ltd., Strategic Management Team now under the process of designing the strategic plan analysis and one of the plans using the terms SO, WO, ST, WT which is fit with matrix
- The ............ Matrix also helps in brainstorming to bring out great ideas to generating effective strategies and tactics.
- PERT and CPM two complementary statistical techniques utilized in ............
- The book "Competitive Advantages: Creating and Sustaining Superior Performance" is authored by:
- Which of the following is not a component of macro environment of external environment?
- The strategy formulation is largely a/an ............ process whereas strategy implementation is more operational in character.
- Name the 3S's which are described as Hard S's by Mckinsey:
- Which "S" is not part of Mckinsey 7-S framework?
- Which of the following is not true for balance scorecard?
- Which of the following is not an example of strategic changes that most of the companies pursue :
- Restructuring and downsizing becomes necessary due to :
- Which of the following techniques are generally used for exercising strategic leap control?
- The primary objective of business process re-engineering is to :
- The three main properties of Block Chain technology are :
- The term DMAIC stands for ............
- The simple objective of total quality management is ............
- The term "ASQC" stands for :
- The X Co. Ltd., wants to achieve the six sigma status in their manufacturing set-up and to achieve this the company must reduce the manufacturing defects to a level of no more than
- Which of the following is not a type of bench- marking identified by Tuominen and Bogan and English ?
- Choose the correct sequence of banchmarking wheel :
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.