CS Executive Financial and Strategic Management PYQ December 2024: Question Paper and Available Answers
CS Executive
Financial and Strategic Management
PYQS Series
December 2024
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 2024). Open the source paper and available answers. Older sessions follow the syllabus and statutory provisions applicable to their examination year.
Indexed questions
- "Shareholders' wealth" in a firm is represented by:
- Long-run objective of the financial management is to:
- Under inflationary conditions the value of money, expressed in terms of its purchasing power over goods and services:
- Ashish wants to retire presently and receive ₹ 4,000 a month. He wants to pass this monthly payment to future generations after his death. He can earn an interest of 8% compounded
- A sum of ₹ 60,000 is invested @ 12% p.a. for 6 years. What will be the present value of its maturity value (₹), assuming a discount rate of return of 10% ?
- A project has expected NPV of ₹ 1,83,000. Its coefficient of variation is 0.07377. Risk free rate is 8% and cost of capital is 10%. What is the standard deviation of project ?
- X Ltd. is increasing its production capacity and buying a machine at the cost of ₹ 40,00,000 having a useful life of 5 years with the salvage value of ₹ 8,00,000. The full purchase
- Beta Ltd. faced with decision to purchase or acquire on lease a machine. Cost of the machine is ₹ 7,61,790/-. The asset can be financed by taking loan on which interest is payable
- Profitability index of Project 'A' is 1.20167 when its cash flow is discounted at 12%. Initial investment on project was ₹ 3,00,000. This project generates equal cash flow over the
- Which of the following is correct formula to calculate coefficient of variation?
- Which technique in capital budgeting is also described as "what to do when all else fail" technique?
- The coefficient of variation of net present value measures the ............
- Which technique is used to determine that how varying assumptions will affect the measures of investment worth?
- In case where capital availability is unlimited and the projects are not mutually exclusive, for the same cost of capital, following criterion is useful?
- Degree of ............ is the ratio of the percentage increase in Earnings Per Share (EPS) to the percentage increase in Earnings Before Interest and Taxes (EBIT).
- High operating leverage shows :
- If the Return on Investment (ROI) exceeds the rate of interest on debt, it is ............ financial leverage.
- A company has sales of ₹2,00,000. The variable costs are 40% of the sales while the fixed operating costs amount to ₹ 30,000. The amount of interest on long-term debts is ₹ 10,000.
- A Company has equity share capital of ₹ 20 Lakh (₹ 100 each), 9% pref. shares of ₹ 10 Lakh (₹ 100 each), and 8% Bank Loan of ₹ 5,00,000. If Applicable income tax rate is 25%, the f
- Which of the following is not included in capital structure ?
- If the interest costs are high, the operating leverage will be :
- A company needs ₹ 31,25,000 for the construction of new Cold Storage plant. The following two plans are feasible : (i) Company may issue 3,12,500 equity shares at ₹ 10 per share. (
- Pizza Bite is an all-equity firm with a current cost of equity of 18%. The EBIT of the firm is ₹ 3,06,000 annually forever. Currently, the firm has no debt but is in the process of
- Beta International is an all-equity firm that has projected earnings before interest and taxes of ₹ 4,97,000 forever. The current cost of equity is 16% and the tax rate is 34%. The
- ............ 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 considerat
- Which of the following is controllable factor affecting the cost of capital of the firm ?
- A firm's overall cost of capital:
- S Ltd. has 12,000 equity shares of ₹ 100 each. Sale price of equity shares is ₹ 120 per share; floatation cost will be ₹ 10 per share. Expected dividend growth rate is 5% and expec
- Debt as percentage of total capital of Agra Ltd. is 20%. Its cost of equity is 16% and pre-tax cost of debt is 12%. Tax rate is 25%. What is overall cost of capital of Agra Ltd. ?
- The liability side of National Ltd. Balance Sheet shows Equity capital ₹ 50 Lakh and Retained Earnings ₹ 80 Lakh. Face value of its share is ₹ 100 each and market value is ₹ 300 ea
- ABC Ltd. keeps a perpetual fixed amount of debenture with coupon rate of 16% in its books. Debenture sells at par (face value ₹ 100) in the market and company pays 25% tax. What is
- Which of the following is not one of the three fundamental methods of firm valuation?
- Technical feasibility implies :
- Financial aspects of project is judged with reference to:
- Zero Coupon bonds are bonds issued at ............ and redeemed at par.
- Which of the following statements is not true in respect to a project plan ?
- You currently own 200 shares of stock in Baba Ltd. The stock currently trades at ₹ 240 per share. The company is contemplating a 1:2 stock split (two shares in place of every share
- Regular Dividend Policy means :
- The target payout ratio is:
- A company wants to buy-back stock. How will this impact the company and its stock ?
- An equity share of ₹ 100 face value is expected to earn an annual dividend of ₹ 11 and this share can be sold at price of ₹ 180 at the end of year. If the shareholder expects a yie
- Determine the Market price of share on the basis of Gordon's Model using following information. EPS: ₹5, Dividend Payout - 35%, Capitalization rate 8%, rate of return on investment
- Initial Working Capital :
- Opening and closing balance of creditors are ₹ 3,00,000 & ₹ 3,60,000 respectively. Raw material purchased on credit was ₹ 11,00,000. Creditor's payment period for the purpose o
- Operating cost is ₹ 18,90,000. Current assets are ₹ 7,20,000. Current liabilities are ₹ 3,00,000. Operating cycle days = ? (1 year = 360 days)
- If credit sales for the year is ₹ 5,40,000 and Debtors at the end of year is ₹ 90,000. The Average Collection Period will be? Assume 1 year = 360 days.
- Current assets are twice the current liabilities. If the net working capital is ₹ 70,000, current assets would be :
- Increasing the credit period from 30 to 60 days, in response to a similar action taken by all of our competitors, would likely result in :
- A machine is expected to require an initial outlay of ₹ 3,50,000 with useful life of four years, straight line method of depreciation and scrap value of ₹ 30,000. If it generates C
- For a product- 'A', following information is available: Maximum consumption per week: 300 units Normal consumption per week: 200 units Reorder period: 2 to 5 weeks The reorder leve
- Economic Order Quantity (EOQ) determines :
- Following information is given for Component 'X' : Normal usage 100 units per week, maximum usage 125 units per week, reorder period 4 to 6 weeks. The minimum level of stock will b
- Return from listed security is in two forms :
- Standard deviation is expressed :
- Which of the following risks can be controlled by an organization ?
- A portfolio's expected return is 11%. Its variance of risk, i.e., risk squared is 184% and the investors' risk tolerance is 42. The risk penalty and utility respectively will be :
- Beta measures risk of an individual portfolio in relation to market portfolio. It is calculated as:
- Yogesh invest ₹ 1,45,000 in shares of Maa Ltd., a listed company. At the end of period investment value is ₹ 1,72,000. He gets dividend of ₹ 16,500. Return from investment is:
- Return of last 5 years of listed security is 13.2%, 19.8%, 18%, 15% & 17%. Five years ago, price of the security was bought for ₹ 130 per share. What is its holding period retu
- According to ............ theory, it is useless to engage in Technical Analysis of securities.
- ............ is the fundamental function of management and all other functions of management are greatly influenced by it.
- Division of work among people and coordination of their efforts to achieve specific objectives are the fundamental aspects of :
- Control is closely related to the ............ job of the manager in an organization.
- Fayol's functions of management include :
- In an organization, decision-making skills are required at:
- Strategic management emphasizes the monitoring and evaluation of external opportunities and threats in the light of an organization's ............ and designing strategies for the
- ............ is the first phase of strategic management process.
- According to ............ , Strategic Leadership is the ability to influence others to voluntarily make decisions that enhance the prospects for the organisation's long-term succes
- Business strategy focuses on:
- ............ refers to key strategic leadership roles in which a leader quickly and clearly works through the complexity of key issues problem and opportunities to affect actions.
- ............ are the guidelines developed by an organization to govern its actions.
- A ............ is a company's Roadmap, indicating both what the company wants to become and guiding transformational initiatives by setting a defined direction for the company's gr
- ............ of a company focuses on the question: 'Who we are' and 'What we do'.
- Retention Strategy relating to Human Resource relates to :
- The company tries to be different and unique from its competitors, under a ............
- The purpose of supply chain management is:
- A campaign advocating the message of 'SAVE TREE' is :
- Financial objectives involve all of the following, excluding:
- Purpose of a strategic analysis is to:
- The process we use to gain understanding and insight into our present situation is ............
- Which of the following is not an "external environment considerations" ?
- 'Build', 'Hold', 'Harvest' and 'Divest' are the strategies followed in:
- The Ansof's Growth matrix suggests a ............ four way model for business growth.
- The process by which an organization deals with a major event that threatens to harm the organization, its stakeholders, or the general public is known as:
- As per ADL Matrix, the portfolio management involves the dimensions of :
- HP Computer has decided to rely exclusively on direct marketing. This is example of:
- The approach of setting goals and measuring productivity of firms based on best industry practices or against the products, services and practices of its competitors or other ackno
- Bike manufacturers 'Honda' and 'Bajaj' work on reducing their prices to sell their bikes in popular segment at attractive prices. This is example of:
- Strategic implementation is :
- The term environment in context of business refers to ............ having a direct or indirect bearing on events related to functioning of business.
- Which strategy is also known as Niche strategy ?
- As per the McKinsey Model, which of the following is a Soft 'S' ?
- The principles of the Business Process Re-engineering (BPR) approach does not include:
- If misinformation and lack of information create barriers in managing change, it can be managed by:
- Which of the following is objective of Business Process Reengineering (BPR) ?
- The managers use ............ to identify the best way to compete in the market.
- Which of the following is not Benchmarking Wheel stage process ?
- Which of the following is not a key feature of Total Quality Management ?
- What is six-sigma risk/return level ?
- ............ is defined as the set of guiding principles, driving forces and ingrained attitudes that help to coordinate goals, plans and policies between partners across a given s
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.