CS Executive Financial and Strategic Management PYQ June 2022: Question Paper and Available Answers
CS Executive
Financial and Strategic Management
PYQS Series
June 2022
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 2022). Open the source paper and available answers. Older sessions follow the syllabus and statutory provisions applicable to their examination year.
Indexed questions
- Investment Decisions help in achieving which of the following long-term objectives of the company?
- Liquidity of Receivables is assessed through which of the following:
- Relationship between Liquidity and Profitability is:
- The present value of ₹1,00,000 to be received 3 years later when rate of return is 10% p.a. compounded annually is :
- A deposited ₹1,00,000 in a bank for a period of 5 years and the rate of interest is 5% p.a. compounded annually. How much amount A will receive after 5 years ?
- Capital Budgeting Decisions are of paramount importance for a business firm. Which of the following factors contributes significantly to this importance ?
- Which of the following techniques are traditional cash flow based techniques ?
- Which of the following are assumptions of Net Income Approach of Capital Structure Theory ?
- Capital Structure of A Ltd. comprises of the following: Equity Share Capital : ₹25 Lakh 10% Debentures : ₹10 Lakh If EBIT is ₹6 lakh, degree of Financial Leverage is:
- In terms of difference between operating leverage and financial leverage, which of the following is incorrect?
- A project requires a capital outlay of ₹400 Lakh. The required amount can be raised either by issuing equity shares of the face value of ₹400 Lakh, or by issuing equity shares to t
- Based on the following financials of a company, what will be its combined leverage ? Turnover: ₹50 Lakh Variable Cost: ₹30 Lakh Fixed Cost: ₹10 Lakh 10% Debentures : ₹20 Lakh Tax r
- Which of the following is correct regarding cost of capital ?
- A Ltd. issued 8% debentures (face value ₹10 each) worth ₹100 Lakh at par. A Limited falls in 30% tax bracket. The effective cost of debentures will be :
- A Ltd. issued debentures worth ₹100 Lakh with coupon rate of 10% and realized ₹97.5 Lakh. The company falls in 30% tax bracket. These debentures are repayable at par after 5 years.
- ABC Ltd. floated 20000 10% preference shares of ₹100 each redeemable after 10 years at face value. Floatation cost amounted to ₹2 per share. Applicable tax rate is 30%. Cost of pre
- A Ltd. issued equity shares of ₹10 Lakh comprising of 1 lakh shares of ₹10 each. The current market price per share is ₹50 and current dividend paid is ₹5 per share. The dividend i
- B Ltd. has equity shares of ₹25 Lakh comprising of 25000 shares of ₹100 each in its capital structure. The current market price per share is ₹110 and profit after tax is ₹5 Lakh. T
- What will be the approx. present value of an annuity of ₹25,000 to be received at the end of each of the next 5 years, if the discount rate is 12% ?
- Which of the following is/are not a part of negative covenants in a Loan Agreement ?
- Which of the following is not a salient feature of a financial lease?
- Which of the following is not a merit of Regular Dividend Policy?
- A bond carries a coupon rate of 12.4% p.a. compounded quarterly. What will be effective yield on the bond ?
- Which of the following is/are assumption(s) of Walter's Model of Equity Valuation ?
- The formula for Walter's Model of Equity Valuation is : $P=\frac{D+r/ke(E-D)}{ke}$ Which of the following is not correct explanation of abbreviations used in the formula ?
- Which of the following is/are criticism of Walter's Model of Equity Valuation ?
- The existing net working capital of a firm was ₹12,04,000. It repaid its creditors worth ₹1,40,000 by issuing them 3 year bonds and acquired a 5 year loan of ₹3 Lakh. Further, it r
- Which of the following is indicative of Aggressive Approach of Working Capital Management ?
- Which of the following methods is/are used to determine the working capital needed ?
- Following financials pertain to ABC Ltd. for the year ended 31/03/2021 : (i) Raw Material Inventory-Average outstanding amount : ₹40,000 (ii) W-I-P Inventory-Average outstanding am
- Which one of the following will not help in lowering the cost of inventory?
- Jones, a HNI, wants to invest in shares of XYZ Ltd., a major component manufacturing company. Apart from looking into internal and external information about the company, Jones sho
- Which of the following statements is correct?
- Which of the following is correct ?
- Which of the following is not a type of Systematic Risk ?
- A invested ₹2 lakh in equity shares of a limited company in the beginning of 2020. So far, he has received ₹1 Lakh as dividend income. The current market price of his holdings is ₹
- Standard deviation is a measure of how each possible outcome deviates from the expected value. In this context, which of the following statements is correct?
- Which of the following is not considered as the assumption of Markowitz Model of Portfolio Analysis ?
- The assumptions of Capital Asset Pricing Model include :
- Which of the following is not an advantage of Capital Asset Pricing Model ?
- Beta is a factor of which of the following:
- Which of the following is/are features of Capital Market Line ?
- High financial gearing will increase the earnings per share of the company if :
- A project requires an initial outlay of ₹5 Lakh. It is expected to generate annual CFAT of ₹1,25,000 through its useful life of years 1 to 5 excluding the scrap value of ₹1 Lakh to
- Pay-back Period with constant annual cash flows is calculated as :
- Payback period method can be successfully employed in which of the following circumstances ?
- Net present value is generally preferred over Internal Rate of Return (IRR) method because:
- The degree of financial leverage of a firm is 2 and degree of its operating leverage is 4. Fixed cost is ₹60,000 and variable cost as a percentage of sales is 60. Applicable tax ra
- Which of the following is correct?
- X Ltd., a leather manufacturing company, has a Sales turnover of ₹40 Lakh for the year ended 31/03/2021. Its variable cost for the year was ₹20 Lakh and fixed cost was ₹5 lakh. It
- Which of the following is correct regarding cost of retained earnings ?
- The capital structure of A Ltd. comprises of the following: Equity Share Capital: ₹4 lakh 8% Debentures: ₹1 lakh Value of Beta is 2, associated risk-free rate of return and market
- Which of the following statements is/are correct?
- Which of the following are the main objectives of syndication of Euro-currency loans from the borrowers' point of view ?
- Which of the following is not an assumption of EOQ Model ?
- DEF Ltd., a manufacturer of ball-point pens, is interested in knowing the Economic Order Quantity. It furnishes you the following information: Annual Requirement: 40000 units Cost
- Which of the following factors determine the credit policy of a firm ?
- Which of the following is not a major requirement of Efficient Market Hypothesis?
- Economic Value added can be calculated as:
- Which of the following is not an objective of portfolio management?
- According to Scientific Management Theory of F.W. Taylor, which of the following is not a principle of scientific management ?
- Which of the following are important features of Human Relations Theory as propounded by Elton Mayo ?
- Establishment of Objectives is the initial important step in planning process. Which of the following is a merit of establishing objectives?
- Steps involved in Organizing function of management include:
- Which of the following is not a feature of Controlling function of Management?
- Environment Scanning is one of the four phases of Strategic Management Process. Which of the following is not an essential feature of Environment Scanning?
- Threats of New Entrants in industry will be high in which of the following circumstances ?
- In Porter's Five Force Model, Bargaining Power denotes to which of the following?
- Which of the following is/are the function(s) of strategic leadership?
- Which of the following is not a functional role of Company Secretary in Strategic Management?
- Which of the following is/are limitation(s) of strategic planning?
- Situation Analysis is an essential component of strategy formulation. Timing of conducting Situation Analysis is very important. It should be conducted during which of the followin
- Effectiveness of Situation Analysis can be assessed by which of the following approaches ?
- In terms of SWOT analysis of Amazon, which of the following may be considered as threats ?
- Strategies that utilizes strengths to maximize the opportunities are represented by which cell of TOWS matrix ?
- Which of the following is a strategy of TOWS concept ?
- Limitations of PERT include:
- Effective implementation of a strategy in an organization needs multiple supporting factors. Which of the following is not included in the list of such factors ?
- Strategic Implementation involves a number of issues. Which of the following is not amongst issues concerning Strategic Implementation?
- Which of the following is not an important benefit of Mckinsey's 7-S Framework Model?
- Which of the following problems is not encountered in the process of resource allocation?
- Strategic Benchmarking is concerned with which of the following ?
- Generic Benchmarking approach deals with which of the following?
- Which of the following is not a key principle of Total Quality Management ?
- The concept of Six Sigma was developed by:
- For controlling function to be effective, which of the following steps are required ?
- Staffing function of Management involves which of the following activities?
- Which of the following are the benefits of Motivation?
- Which of the following is not a contributory factor for intense rivalry among the existing competitors?
- Which of the following is not a key strategic leadership role of a strategist ?
- BCG Matrix is built around :
- Which of the following is not a growth option in Ansoff's Growth Matrix ?
- The strength of Market Development option of Ansoff's Growth Matrix is that :
- Which of the following strategies of Ansoff's Growth Matrix is referred as Suicide Cell?
- Which of the following is not an advantage of Divisional Structure of an organization?
- Which of the following is not an advantage of Matrix Organization structure ?
- Which of the following areas is not covered by Strategic Control ?
- Adoption of Six Sigma methodology helps in improving efficiency due to which of the following factors?
- Which of the following signifies a Six Sigma Green Belt individual ?
- Which of the following best describes the term Artificial Intelligence?
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.