CS Executive Financial and Strategic Management PYQ December 2023: Question Paper and Available Answers
CS Executive
Financial and Strategic Management
PYQS Series
December 2023
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 2023). Open the source paper and available answers. Older sessions follow the syllabus and statutory provisions applicable to their examination year.
Indexed questions
- The market value of each share of X Ltd company is ₹40, and its equity share capital is ₹400 crores comprising of shares of face value of ₹100 each. The market value of the company
- Which among the following is not true ?
- A project has net cash flows of ₹11,000 per annum for four years. The Initial cash outflow is ₹34,000. Which of the following statement is correct concerning the project's internal
- The shareholder value maximisation model holds that the primary goal of the firm is to maximise :
- The project planning activities and goals include defining : (1) The specific work to be performed and goals that define and bind the project (2) Estimates to be documented for pla
- Y Ltd. is considering a project which requires initial investment of ₹20,000. Cost of capital is 10%. Estimated cash flows after tax are as follows: Year 1: ₹8000 Year 2: ₹5000 Yea
- According to __________, the movements of the market are divided into three classifications, the primary movement, the secondary movement, and the daily/minor fluctuations.
- A dividend policy that helps in creating confidence among the investors, stabilizes the market price of shares and helps in marinating the goodwill of the company is :
- Which of the following would be consistent with a more aggressive approach to financing working capital ?
- __________ are usually taken as proxy for risk-free return as it is issued by the Government and duration is not very long.
- The venture capital financing is a __________ financing of new high risky venture promoted by skilled entrepreneurs who lack __________ and funds but have __________.
- A company has an existing EPS of ₹7.5; it makes an FPO of 15000 shares (Face value ₹10) issued at a price of ₹25 per share. The additional funds thus raised are expected to earn a
- Commercial paper is a __________ issued by __________ interest rate of which is linked to __________.
- __________ is the rate of return associated with the best investment opportunity for the firm and its shareholders that will be forgone if the projects presently under consideratio
- CC Industries Ltd. has net assets of ₹1,70,000 which have been financed with ₹58,000 of debt, ₹1,00,000 of equity and a general reserve of ₹12,000. The firm's total profits after i
- Gamma Ltd. has furnished the following information: Earnings Per Share (EPS) ₹4 Dividend payout ratio 25% Market price per share ₹50 Rate of tax 30% Growth rate of dividend 10% The
- Retention ratio is 0.60 and return on equity is 15.5%, D0 = ₹10, P0 = ₹70 then Ke = ?
- Ranu & Co. has issued 10% debenture of face value ₹100 for ₹10 lakh. The debenture is expected to be sold at 5% discount. It will also involve floatation costs of ₹10 per deben
- A company has a cost of equity of 10% and an interest rate of 6%. The company's debt-to-equity ratio is 1.5, and the corporate tax rate is 40%. What is the company's weighted avera
- Which of the following actions will not generally cause an increase in WACC ?
- A company's beta is 1.5. The market return is 15% and the risk-free rate is 10%. What is the expected return of the company's stock based on CAPM ?
- Following information is provided by the Lake Ltd. for the year ending 31 March 2023 : Raw material storage period 60 days WIP conversion period 22 days Finished goods storage peri
- A Factoring firm has credit sales of ₹300 lakhs and its average collection period is 36 days. The financial controller estimates bad debt losses are around 2% of credit sales. The
- Which of the following is a factor that affects the optimal level of working capital ?
- Which among the following is not a systematic risk ?
- Which of the following indicates aggressive working capital policy ?
- Which of the following is a technique used to manage working capital ?
- Which of the following statements is not covered in Credit Monitoring Arrangements report ?
- Maximum permissible bank finance as per the first method of Tandon Committee norms was ₹57,41,813 while current liabilities are reported at ₹32,50,000. Current assets = ?
- Which of the following is the most important determinants of a firm's cash reserve requirements ?
- Which of the following is not a stage in evolving plan of a project ?
- Which of the following dividend types is not prevalent in India?
- Bharat Ltd is an all-equity firm that has projected earnings before interest and taxes of ₹5,50,000 forever. The current cost of equity is 15% and tax rate 30%. The company is in t
- __________ assumes that co-movement between stocks is due to change or movement in the market index.
- Which one of the following approaches of the capital structure pleads that debt financing initially increases the value of the firm; however excess debt financing beyond a particul
- Mr. Dashan recently came back from a conference titled Capital Structure Theory and was extremely excited about what he learned concerning Modigliani and Miller's capital structure
- Tarmarind Ltd. wants to implement a project for which ₹25 lakhs is required. Following financing options are at hand : Option 1: Equity Shares 25,000@ ₹100 Option 2: Equity Shares
- Assertion (A): The capital structure should involve minimum risk of financial insolvency. Reason (R): The use of excessive debt threatens the solvency of the company.
- One-fourth of the total market value of X Ltd. consists of loan stock, which has a cost of 11%. Another company, Y Ltd., is identical in every respect to X Ltd., except that its ca
- According to the residual dividend theory, dividend payment is determined on the basis of:
- Determine the market price of share of XYZ Ltd as per Gordon's model, given that equity capitalisation rate = 11%, expected earning = ₹20, rate of return on investment = 10% &
- Following information is available in respect of Rama Ltd. : No. of shares outstanding: 4 lakh Net profit: ₹20 lakh Equity capitalization rate: 15% Rate of return on investment: 20
- The repurchase of stock is considered __________ decision rather than __________ decision.
- Ram Ltd is a listed company. Its ₹1 ordinary shares are quoted on the stock exchange. The Board of Ram Ltd. is aware that the market is expecting Ram Ltd. to pay a dividend of ₹90
- When IRR is greater than __________, the price per share __________ and dividend pay-out is expected to __________.
- According to "Bird-in-hand Theory", investors are __________.
- The MM hypothesis of the irrelevance of dividends is based on which of the critical assumption ? (i) Investors can forecast future prices & dividends with certainty. (ii) The f
- __________ helps to analyze the level of fixed cost which is invested in day-today activities of business firm.
- When EBIT is less than Finance Break-even point, the result is __________.
- If the combined leverage and operating leverage figures of a company are 2.5 and 1.25 respectively, find the financial leverage and P/V ratio, given that the equity dividend per sh
- Trading on equity represents :
- __________ is also known as double edged sword.
- Which of the following is a modern technique of capital budgeting?
- Following data is available for A Ltd. Financial Leverage - 3:1 Interest - ₹2,000 Operating Leverage - 4:1 Variable cost (% to sales) - 66.67% Income Tax Rate - 45% Amount of contr
- Operating leverage is 8 and financial leverage is 2.2769. How much change in sales will be required to bring 80% change in EBIT ?
- Profitability index of Project is 1.50 when its cash flow is discounted at 12%. Initial investment on project was ₹1,44,200. This project generates equal cash flow over the five ye
- A professional kitchen is attempting to choose between gas and electricity for its main heat source. Once a choice is made, the kitchen intends to keep to that source indefinitely.
- The following data is available for Project A whose initial investment is ₹80,000 and salvage value after 5 years are ₹4,500. Year | CFAT (₹) 1 | 35,000 2 | 30,000 3 | 20,000 4 | 2
- A project under consideration whose useful life is 4 years, will have no change in revenue but will save cost of ₹1,60,000 annually. It has IRR of 15%. What is the project cost i.e
- Initial capital cost ₹100 crores, Annual unit sales 1.25 crores, Selling Price ₹100 per unit. Variable cost ₹50 per unit, Fixed Cost ₹12.50 crores per year, Cost of capital is 6%.
- Scalar chain indicates :
- Koontz and O'Donnell believed that there ought to be five key functions of management. Which one is not part of those five functions?
- Y is a clothing brand that also offers consumers washable diaper products. According to Porter's Five Forces model, which one of the following indicates that the power of buyers in
- Ranu, a top-level manager of a large manufacturing plant, tries to ensure that the material spoilage is not more than 5%. She is performing the management process of:
- In projects like Civil Construction and Ship building, which of the following is more suitable ?
- Which of the following signifies Attractive Industry as per Porter's five forces model ?
- Which of the following is about communication with the employees and other stakeholders of the ogranisation, which let them see where the organization is aspiring to head in the fu
- Strategic Planning process is modelled in cyclical framing of various steps. Which one of the following is not part of the cycle?
- Following are the components of Six Sigma process : (a) Analyse (b) Define (c) Measure (d) Control (e) Improve Identify the correct flow of Six Sigma process :
- Which of the following is not an advantage of GE matrix ?
- Following is based on the participation of all members of an organization to improving processes, products, services, and the culture they work in:
- __________ is the essence of strategic planning process, and occupies highest level of strategic decision-making.
- Business Policy also includes dealing with :
- Which of the following is not a parameter considered in "Competitive Positioning and Value Creation Frontier" by Hill and Jones ?
- Which of the following is not regarding an organization's Mission statement?
- Which of the following is not a stage in implementing HR strategies?
- Which of the following is not an exclusively production strategy under Competitive Priorities category?
- Which of the following is not an element of Logistics Strategy plan ?
- AB Ltd. currently sells its products in US and China. While it is a market leader in US, AB Ltd has struggled to maintain its market share in China. It has decided to pull out of C
- Following is the means by which a firm is effectively able to differentiate itself from its competitors by capitalising on its strengths (both existing as well as potential) to pro
- Working Capital Management is a part of :
- Which of the following is not a core focus area of complete situation analysis ?
- Benchmarking against external organisations that do not compete directly with the competitors inside its industry is called :
- Which of the following is/are tools of BPR?
- Profitability of a company depends on which of the following factor as per value creation ?
- Which of the following is the 'Mini-Maxi' strategy in TOWS analysis ?
- ABC Ltd has updated the packaging of its products as well as slightly reducing its selling price. According to Ansoff's product/market matrix, which of the following strategies has
- Rate relating to Sky Ltd. is shown below, which product is cash cows among the following? Product | Percentage Market Share | Market Growth rate Alpha | 65 | High Beta | 30 | High
- With which of the four perspectives of a balanced scorecard, is the objective 'reduce employee turnover' is associated with ?
- If Industry Attractiveness is 'Low' and Business Strength is 'Average', then which of the following strategy should be followed as per GE Matrix ?
- The ADL Matrix is technique that is based on the :
- Identify steps that are involved in using the ADL Matrix :
- Which of the following is a strategic alternative according to Glueck and Jauch ? (a) Internal Growth (b) Retrenchment (c) Differentiation (d) Cost Focus Options:
- Which of the following is not a certification of six sigma ?
- As per Porter's five force theory, low raw materials substitute is a factor of:
- Which of the following is not a commonly known style of leadership ?
- Which of the following is not a type of a Strategic Control techniques ?
- Which of the following is a soft factor identified by McKinsey's 7 S Model ?
- What is meant by the element of "style" in the 7-S framework ?
- Balanced Score Card was developed for :
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.