CS Executive Financial and Strategic Management PYQ June 2021: Question Paper and Available Answers
CS Executive
Financial and Strategic Management
PYQS Series
June 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 (June 2021). Open the source paper and available answers. Older sessions follow the syllabus and statutory provisions applicable to their examination year.
Indexed questions
- ABC Ltd. has capital investment of ₹400 crores. After tax operating income is ₹45 crore and company has a cost of capital of 10%. Determine the "Economic Value" Added of the firm:
- __________ means the management of an organization maximizes the present value not only for shareholders but for all including employees, customers, suppliers and community at larg
- Financial Management is mainly concerned with:
- Which of the following need not be followed by the finance manager for measuring and maximising shareholders' wealth?
- Which of the following statement is correct, related to fixed charges like interest on debt?
- A company is considering a proposal to install either a semi-automatic or highly automatic machine. If the firm installs a semi-automatic machine it excludes the acceptance of prop
- Risk Adjusted Discount Rate (RADR) is :
- Derive the formula for calculation of NPV if 'NCF' represents net cash flow, 'K' represents risk adjusted discount rate, 'I' represents initial investment, and 't' represents time
- Find the amount of an annuity if payment of ₹50,000 is made annually for 7 years at interest rate of 14% compounded annually.
- A profitability index of 0.90 for a project means:
- Which of the following statements is correct?
- If the cut off rate of a project is lower than IRR, we may:
- The re-investment assumption in the case of IRR technique assumes :
- For a Project, the cost benefit ratio is equal to one, then:
- In a capital budgeting decision, incremental cash flows mean:
- Shaktiman Inc. considering a project that requires ₹4 Crore as initial investment. It is expected to generate annual after-tax cash flows of ₹60 Lakh for 12 years. Shaktiman's weig
- Mohan Pizza Ltd. is considering purchasing of a Pizza Oven. The expected purchase price is ₹2,70,000, expected annual revenues from the oven is ₹1,50,000, and expected annual costs
- A capital budgeting technique which does not require the computation of cost of capital for decision making purposes is,
- When EBIT is higher than Financial Break-even point, there would be :
- __________ of an organisation refers to the composition of its long-term funds and its capital structure.
- A critical assumption of the net operating income (NOI) approach to valuation is :
- Capital structure of ABC Ltd. consists of equity share capital ₹1,00,000 (10000 share of @ ₹10 each) and 8% debentures of ₹50,000 & earnings before interest and tax is ₹20,000.
- An EBIT-EPS indifference analysis chart is used for __________
- Degree of combined leverage is the fraction of:
- From the following information, calculate combined leverage: Sales | ₹20,00,000 Variable Cost | 40% Fixed Cost | ₹10,00,000 Borrowings | ₹10,00,000 @ 8% p.a.
- The __________ is the percentage change in earnings per share that results from a percentage change in operating income.
- Which kind of capital structure has a large proportion consisting of equity capital and retained earnings which have been ploughed back into the firm over a considerably large peri
- Which is not the main function of specialised financial institutions established by the Central and State governments?
- PQR Ltd. has expected earnings at ₹40 per share which is growing at 9% annually. Company follows fixed pay out ratio of 60%. The market price of its share is ₹500. What is the curr
- Sachin Company has sales of ₹75,00,000. Variable cost of ₹45,00,000 and fixed cost of ₹15,00,000. Operating leverage will be:
- A company has issued 50,000 equity shares of ₹100 each. Its current market price is ₹90 per share and the current dividend is ₹8 per share. The dividends are expected to grow at th
- Shyamali Limited is currently financed with ₹5,00,000 of 10% Debenture and ₹15,00,000 of Equity share. The equity share has a beta of 1.5, and the risk free rate is 6%, and the mar
- The cost of each component of a firm's capital structure multiplied by its weight in the capital structure is called:
- While calculating weighted average cost of capital which is not considered :
- Venture capital means:
- In Social Cost-Benefit Analysis, a project is analysed from the point of view of the benefit, if:
- Which of the following statement is correct with respect to Gordon's model?
- What are the different options other than cash used for distributing profits to shareholders?
- According to the Walter's model, a firm should have 100% dividend pay-out ratio when:
- Modigliani and Miller, recognizing that dividends do somehow affect stock prices, suggest that positive effects of dividend increases are attributable :
- A Company has 5,000 shares of ₹100 each. The capitalisation rate is 12%. Income before tax is ₹2,00,000. Tax rate is 30%. Dividend pay-out ratio is 50%. Find Market Price Per Share
- PQR company earns ₹10 per share, is capitalised at a rate of 10 per cent and has a rate of return on investment of 20 percent. If dividend payout ratio is 50%, what should be the p
- When the firm does not pay out fixed dividend regularly, the dividend policy is known as:
- What do you understand by the term 'factoring' with respect to management of accounts receivable?
- Calculate maximum permissible bank finance (MPBF) as per first method suggested by the Tandon Committee, from the information given below : Particulars | Amount (₹ lakhs) Creditors
- Credit term '4/20 net 90' means :
- According to William J. Baumol's economic order quantity model with respect to cash management, optimum cash level is that level of cash where :
- Determine the economic order quantity from the following figures : (i) Annual requirement of inventory 1,00,000 units (ii) Cost per unit (other than carrying and ordering cost) ₹20
- Net Operating Cycle (NOC) can be defined as sum of:
- Net working capital is equal to :
- The intercept of Security Market Line (SML) on the Y Axis is ............
- In............ the future earning capacity is predicted with the help of accounting ratios.
- Beta of the Market portfolio generally is:
- The main aim of portfolio is to reduce .......... by diversification.
- Suppose two portfolios have the same average return, the same standard deviation of returns, but portfolio A has a higher beta than portfolio B. According to the Sharpe measure, th
- Anubhav is planning to purchase a share that has a beta coefficient of 0.95. He estimates the expected market return to be 12% while T-Bills yield 7%. What rate should he expect an
- Tansen Ltd. has a beta of 0.80. If the expected market return is 21.50 and the risk free rate of return is 9.50%. Using CAPM mode to calculate the appropriate required rate of retu
- Which of the following is most closely associated with the terms 'primary trend,' 'intermediate trend,' and 'short-term trend' ?
- Bar chart is used to illustrate :
- Which of the following is not a basic principle of the Dow Theory ?
- The first ever 14 principles of 'classical management theory' was shelled out by:
- Which of the following is not a function of management ?
- Planning process begins with:
- The framework within which managerial and operating tasks are performed is called:
- An efficient control system helps to :
- Which one of the following is not part of the Porter's Five Forces model ?
- The fundamental purpose for the existence of any organization is described by its :
- Which of the following is not considered as a major elements of the strategic management process ?
- Which of the following is a part of Macro Business environment?
- Threat to New Entrants to the industry is very low when :
- Rivalry among competitors in an industry is NOT intensed when :
- Which strategy is about how to compete successfully in particular markets ?
- What is the key benefit of identifying the organisation's SBUs?
- Select the incorrect statement regarding Business Strategy/Corporate Strategy:
- Strategic Marketing answers three 'W's except:
- Which of the followings is not part of production strategies under Competitive Priorities ?
- What strategy shall be used for the products classified as Dogs in BCG matrix ?
- Strategies that minimize weakness and avoid threats are represented by which cell of the TOWS Matrix ?
- An organization that has a high market share position and competes in a low-growth industry is referred to as a ............
- 'Build,' 'Hold,' Harvest' and 'Divest' are the strategies explained by:
- The SWOT/TOWS analysis is a very simple yet valuable technique which aids in identifying opportunities and threats from an ............ enviroment, and analysing its ............ s
- In long run, when the growth rate slows down stars become :
- GE Nine-cell Matrix is based on:
- Which one of the following is NOT a level of diversification prescribed in Ansoff's matrix ?
- According to Porter's generic strategy model, Mercedes-Benz C-Class could sell its cars as most expensive ones, is an example of :
- In Porter's Generic Strategies model, a focus strategy includes :
- Which of the following is not correct related with reference to PERT?
- According to MCKINSEYS 7-S framework change in strategy is implemented through change in ............
- The difference between strategy formulation and strategy implementation is that:
- Which of the following most suitably applies to the matrix structure ?
- Which model is based on the premise that the organization is an open system and basic task of the manager is to facilitate the change in the organization ?
- Which is not a correct element of strategic leadership?
- Which strategic control techniques enables the organizations operating in a relatively unstable and turbulent environment in defining new strategic requirements and to cope with en
- Which of the following perspective is not a part of Balance Scorecard ?
- Business Process Reengineering mainly involves:
- Which is not a factor for a successful implementation of BPR as identified Al-Mashari and Zairi ?
- With reference to benchmarking, select the correct statement out of the following:
- Which of the practice started by Ford Motor with a slogan of 'Quality is Job 1'?
- In which Six Sigma, an individual should have a basic understanding of Six Sigma, statistical tools and DMAIC methodology?
- In 'DMAIC', with reference to Six Sigma D stands 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.