CS Executive Financial and Strategic Management PYQ June 2023: Question Paper and Available Answers
CS Executive
Financial and Strategic Management
PYQS Series
June 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 (June 2023). Open the source paper and available answers. Older sessions follow the syllabus and statutory provisions applicable to their examination year.
Indexed questions
- In order to increase a given net present value from a given set of outflows and inflows, the discount rate should generally be :
- Wealth maximization is preferred over profit maximization as it :
- Which of the following is NOT a reason for criticism of profit maximization as the basic objective of finance function ?
- Which of the following is true from the perspective of calculating Market Value Added ?
- Failure of a firm to meet its current obligations, when its liabilities exceed its assets is:
- You have ₹9,000 to deposit. ABC Bank offers 12 percent per year compounded monthly, while Kings Bank also offers 12 percent per year, but will only compound annually. How much will
- ₹2,000 is invested at the end of each month in an account paying interest 6% per year compounded monthly. What is the approximate amount/value of this investment after 10th payment
- __________ is the most suitable method assessing projects in those circumstances where availability of resources is not a constraint.
- A company is considering investing in a project that will cost ₹3 lakh, will last for 5 years with straight line method of depreciation and salvage value of ₹20,000. Annual NPAT ex
- Point out the FALSE statement in relation to MIRR method :
- A project under consideration is expected to require ₹9 lakh of initial investment. Its expected life is 5 years and it is expected to generate Cash flow after tax (CFAT) of ₹2,82,
- Raja & Co. desires to take a project whose cost is ₹10,000 and useful life is 4 years. Expected annual cash flows are ₹4,000 p.a. Cost of capital is 14%. The sensitivity of the
- A firm is considering a project requiring ₹3,00,000 with 7 years life and ₹55,000 salvage value. The project is expected to generate net profit before depreciation and tax of ₹1,20
- Two projects are under consideration with following details : Project A will require initial outlay of ₹60,000, will last for 5 years and will generate annual CFAT of ₹20,000. Proj
- In Risk-Adjusted Discount Rate method, __________ is adjusted.
- Company A has an offer to invest in three projects – B, C and D. However, Company A has funds to invest in only one project. So, it decided to use the NPV method to decide on the p
- Which one of the following statements is TRUE ?
- Which of the following is TRUE for Net Income Approach ?
- One-fifth of the total market value of X Ltd. consists of loan stock, which has a cost of 10%. Another company, Y Ltd. is identical in every respect to X Ltd., except that its capi
- Skyline Software Ltd. wants to implement a project for which ₹30 lakh is required. Following financing options are at hand: Option 1: Equity Shares 30,000 nos. @ ₹100 each Option 2
- Which of the following statements is TRUE ?
- Which of the following is considered to be the optimal combination?
- Which of the following statements is TRUE ?
- 'Cost of capital may be defined as the rate that must be earned on the net proceeds to provide the cost elements of the burden at the time they are due'. This definition has been g
- Which is not the factor affecting cost of capital that the company has control over ?
- A company raised ₹4,90,000 by issuing 5,000 10% debentures of ₹100 each with 8-year maturity at 2% discount. It also paid commission of 3% of the face value to brokers. If the comp
- A company issued 20000 7% preference shares of ₹50 each at premium of 4%. Flotation cost was ₹2 per share. Applicable income tax rate is 20%. Cost of preference share capital will
- A company has outstanding 2,00,000 equity shares of ₹100 each and 5,00,000 8% preference shares of ₹10 each. Apart from the dividend on preference shares, the company has paid a di
- A Ltd. requires an amount of ₹5,00,000 to finance a project. It was decided to raise such finance by the issue of debentures. Cost of debt (before tax) up to ₹2,00,000 is 10% and 1
- Which of the following statements is true from the perspective of weighted average cost of capital ?
- Which among the following is generally not incorporated in set of analysis in a project report ?
- The project is unviable when Benefit Cost Ratio (BCR) it is less than:
- __________ analysis takes care of only one or two variables which is at times inadequate. This limitation is partially overcome by what is known as __________ analysis, where _____
- __________ does not result in a substantial transfer of the risks and rewards of ownership from one party to other.
- This refers to a strategy of making equity investments as part of a transaction in which a company, business unit or business assets are acquired from the current shareholders typi
- Which of the following is not a required condition for SEZ units to avail tax incentives ?
- Issue of bonus shares is a nature of :
- Walter's Model suggests for 100% Dividend Payout Ratio when :
- The following information is available in respect of Sober Ltd.: No. of shares outstanding: 1 lakh; Earnings per share: ₹4; Equity capitalization rate: 12%, Rate of return on inves
- The earning per share of a company is ₹25. Its internal rate of return is 15% and capitalization rate of the risk category to which it belongs is 12%. If the retention ratio is 100
- Which of the following approach advocates irrelevance of dividend ?
- The market price of A Ltd. is ₹200 per share as per Gordon Model. Earning per share is ₹20. Cost of capital is 11%. Rate of return on investment is 12%. What was the retention rati
- The aggressive working capital investment approach covers those policies, which :
- A Ltd. has provided the following information: Net working capital ₹2,800; Current ratio 2.4; Liquid ratio 1.6; Amount of Current Assets is :
- Tandon Committee recommendations aims that the dependence of industry on bank finance should gradually :
- Quarterly consumption of materials: 2,000 kg; Cost of placing an order: ₹50; Cost per unit: ₹40; Storage and other carrying costs: 8% of average inventory cost. Economic order quan
- An asset is not classified as current when :
- Sales collection policy of a company is '20% sales are on cash, 50% of the credit sales are collected next month and the balance in the following month'. The Collection for the mon
- Apollo Ltd. sells its products allowing a credit period of 15 days only. The average variable cost is 60% of sales value and current sales amount to ₹100 lakh. Data for the year is
- Which of the following statements is/are true?
- Which statement is true about terms of trade credit of 2/10, net 30 ?
- Which is not key requirement/premise for an efficient securities market?
- According to Dow Jones theory, share prices demonstrate a pattern over 4 to 5 years. These patterns can be :
- Random walk theory does not imply that __________ price changes are random.
- Portfolio theory was originally proposed by :
- If a portfolio's expected return is 9 percent, variance of return is 100 percent and the investor's risk tolerance is 50, the risk penalty and utility respectively are :
- Which of the following is located on the horizontal axis of the Security Market Line ?
- Which one of the following is not a key difference between Capital Market Line (CML) & Security Market Line (SML) ?
- Which one of the following is not true in relation to Sharpe Ratio ?
- The current capital invested in a company is ₹ 60 Lakh. Its post-tax net operating profit is ₹ 15 Lakh. Applicable income tax rate is 30%. If the opportunity cost of investment is
- Which of the following is not a principle of Bureaucratic theory by Max Weber ?
- X & Y Theory was formulated by :
- __________ is a bridge between the operational needs and the human requirements of its employees. Since it aims to improve productivity, you are strengthening how well the organiza
- Which one does match, out of the following leadership styles ?
- Which one of the following is not in the Maslow's hierarchy of needs ?
- Which one of the following is not correct?
- Which one of the followings is not a feature of Controlling Function?
- Which one of the followings is not a phase of strategic management process?
- __________ attracts, develops and retains talent to ensure that people with the right skills and motivations to meet business needs are in the right place at the right time.
- Which of the following statements is not true?
- Business policies are the __________ developed by an organization to govern the actions.
- Identify the wrong statement out of the following:
- Identify the FALSE statement out of the following:
- In __________ market strategy, business avoids "neck to neck" competition and its objective is to build strong ties with the existing customer base and develop strong loyalty with
- Which one of the following is FALSE in context of human resource planning?
- Which of the following is not a component of 'competition priorities' dimension in formulating Production Strategies ?
- Which one of the following questions may not be relevant in assessing the effectiveness of Situation analysis ?
- Match the followings in the light of Amazon's SWOT analysis: A1 Strength B1 Seasonality A2 Weakness B2 Brand Identity A3 Opportunity B3 Patent Infringement A4 Threats B4 Expansion
- Match the following in the light of COCA-COLA'S SWOT analysis: A1 Strength B1 Pepsi biggest competitor A2 Weakness B2 Olympic games' sponsorship A3 Opportunity B3 Loss of market de
- Identify the FALSE statement :
- Match the following as per the TOWS strategies: A1 Aggressive strategy B1 mini-mini A2 Conservative strategy B2 mini-maxi A3 Competitive strategy B3 maxi-mini A4 Defensive strategy
- Match the followings as per the TOWS matrix of Pepsi : A1 'WT' Analysis B1 Pepsi had more expensive products than Coke A2 'WO' Analysis B2 Very strong taste, it really feels that s
- CPM computes the path of planned jobs/activities to logical end points/the end of the project, and the earliest and latest time by which each activity can start and finish without
- The BCG Matrix aims to evaluate each product in following two dimensions :
- __________ are products which have a high market share in a low growing market.
- Which of the following strategies is not based on BCG matrix ?
- Match the four growth options of the Ansoff's Growth Matrix : A1 Market Penetration B1 new products and strategy current markets A2 Product development B2 current products strategy
- Which one is not an Industry Maturity or Life Cycle stage in ADL Matrix ?
- The fundamental concept of strategic business unit is to identify the independent __________ served by an organization.
- Matrix structure is one where each __________ becomes strategic.
- Which structure is suitable to firms operating single or related business ?
- Which of the following is NOT one of the objectives of the Business Process Reengineering (BPR) ?
- Which of the following may NOT be the reason for failure of Business Process Reengineering?
- Point out the FALSE statement :
- Match the following: A1 Benchmarking B1 Determining how strong a company's products & services are A2 Strategic benchmarking B2 Finding and implementing Best Business Practices
- Ford Motor Company total quality management or TQM practices started in the 1980s when __________ was their slogan.
- __________ is a disciplined, statistical-based, data-driven quality control program.
- Identify the statement which is incorrect :
- Industry 4.0 is the digitization of the manufacturing sector, driven by four clusters of disruptive technologies. Which one of the following is not included in such technologies ?
- __________ is used to describe new tech that seeks to improve and automate the delivery and use of financial services.
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.