CS Executive Financial and Strategic Management PYQ June 2024: Question Paper and Available Answers
CS Executive
Financial and Strategic Management
PYQS Series
June 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 (June 2024). Open the source paper and available answers. Older sessions follow the syllabus and statutory provisions applicable to their examination year.
Indexed questions
- "Financial Management is an area of financial decision-making, harmonizing individual motives and enterprise goals," was defined by:
- Which of the following indicates the two basic aspects of financial management ?
- Which of the following is an example of unsystematic risk?
- What is the key factor that influence investment decisions ?
- Given data D 0 = 7, P 0 = 50, growth rate = 8.4%, then ke on the basis of dividend growth model will be :
- Zero Coupon bonds are bonds issued at __________ and redeemed at par.
- E Ltd. is considering an investment that will cost ₹ 80,000 and have a useful life of 4 years. During the first 2 years, the net incremental after-tax cash flows are ₹ 25,000 per y
- Payback period is primarily considered as the measure of project's __________ rather than its __________.
- Many companies are forced to reduce spending when they are going to raise additional capital by issuing new debt or equity. This is an example of __________.
- Management is considering a ₹ 1,00,000 investments in a project with a 5 years life and no salvage value. If the total tax paid income from the project is expected to be ₹ 60,000 a
- What is the internal rate of return for a project having cash flows of ₹ 40,000 per year for 10 years and a cost of ₹ 2,26,009 ?
- Which of the following will not suggest for accepting of a project ?
- When operating under a single-period capital-rationing constraint, you may first want to try selecting projects by descending order of their __________ in order to give yourself th
- If there is no operating leverage in a firm, it is indicative of absence of:
- Which of the following shows the significance of capital structure ?
- While considering the Horizontal capital structure, which of the following statements is correct? (1) It is quite stable (2) It is formed by a small amount of equity share capital
- Which of the following is correct in case financial leverage is considered by a firm ?
- A new project under consideration requires a capital outlay of ₹ 300 lakhs. The required funds can be raised either fully by equity shares of ₹ 100 each or by equity shares of the
- Consider the following financial information: Contribution = ₹ 4,00,000 Fixed Cost = ₹ 1,00,000 10% Debentures = ₹ 6,00,000 Combined leverage = ?
- EBIT of ABC Ltd. is ₹ 7,00,000. The company has 12% ₹ 25,00,000 debentures. The equity capitalization rate is 16%. Calculate the market value of the firm (₹) as per the Net Income
- A firm has a DFL of 9.5. What does this tell us about the firm ? Assume 40% tax.
- __________ and __________ are two financial instruments that carry a fixed rate of interest and they have to be paid off regardless of whether the firm earns revenue or not.
- Which among the following is not relevant while calculating the cost of the redeemable preference shares ?
- Which of the following is an uncontrollable factor affecting the cost of capital ?
- A company issue 20% irredeemable debentures of ₹ 20,000. The company is in 30% tax bracket. Calculate cost of debt capital, if it was issued at 10% premium.
- According to CAPM the cost of capital (ke) is:
- BNK Ltd. has a cost of debt (pre-tax) of 7%, a cost of equity of 11%, and a cost of preferred stock of 8%. The firm has 1,04,000 shares of common stock outstanding at a market pric
- A company has currently 25,000 equity shares of ₹ 100 each and its' earnings as available for equity shareholders are ₹ 4,00,000. Its current market price is ₹ 128 and the growth r
- Which of the following is a condition for setting up a SEZ unit ?
- Which of the following is not a type of Feasibility Studies conducted during primary stage of a project financing to undertake a macro view of project ?
- Financial aspects of project is judged with reference to :
- Which among the following is not an assumption of Walter's Model ?
- Which of the following form of dividend is not prevalent in India ?
- Modigliani and Miller argued that the dividend decision:
- The market price of J Ltd. is ₹ 200 per share as per Gordon Model EPS is ₹ 20 per share. The cost of capital is 11%. The rate of return on investment is 12%. What is the retention
- The following information is available in respect of H Ltd. : No. of shares outstanding : 3 lakh Net profit: ₹ 18 lakh Equity capitalization rate : 16% Rate of return on investment
- __________ refers to the difference between current assets and current liabilities.
- Current assets are those assets :
- A company is considering a project with initial outlay of ₹ 5,00,000. The project is expected to last for 5 years with salvage value of ₹ 78,000. It is expected to generate CFAT of
- An aggressive current assets policy indicate :
- The following information is extracted from Z Ltd.: Net Working capital ₹ 2,80,000 Current Ratio 2.4 Liquid ratio 1.6 Amount of Current Assets is:
- If a firm has ₹ 100 in inventories, a current ratio equal to 1.2, and a quick ratio equal to 1.1, what is the firm's Networking Capital (₹)? Assume no prepaid expenses.
- Maximum permissible bank finance as per the first method of Tandon Committee norms was ₹ 57,75,000 while current liabilities are reported at ₹ 75,00,000. Current assets are equal t
- Which of the following is not a characteristic of Systematic Risk ?
- Which of the following is not one of the key motives of holding cash be a firm ?
- How long does primary trends lasts for ?
- __________ hypothesis holds that security prices adjust rapidly to all publicly available information such as functional statements and reports and investment advisory reports etc.
- __________ charts have a thin vertical line showing the price range for a given period that is shaded different colors based on whether the stock ended higher or lower.
- An investor is holding 100 shares of Right Choice Ltd. for last 5 years that he bought for ₹ 52,500. During the holding period, he received dividends worth ₹ 10,250 and currently t
- A portfolio manager has invested in a particular fund which has generated a return of 12% with a standard deviation of 3.6%. If the risk-free rate of return in the market is 6%, th
- Portfolio approach to investing is primarily focused on:
- Which of the following is not an assumption of Capital Asset Pricing Model (CAPM) ?
- The first ratio to measure risk-adjusted return and one of the most referenced risk/return measures used in finance was introduced by:
- Which of the following is an outcome of conducting social cost-benefit analysis ?
- The cost of equity capital is all of the following EXCEPT :
- A Company's Raw material storage period is 20 days; Finished goods storage period is 25 days; Receivables (Debtors) collection period is 40 days; Credit period allowed by suppliers
- 80% of sales of ₹ 12,00,000 of a firm are on credit. It has a Receivable Turnover of 8. What is the Average collection period (360 days a year) and Average Debtors of the firm (₹)
- A firm has inventory turnover of 4 and cost of goods sold is ₹ 7,50,000. With better inventory management, the inventory turnover is increased to 6. This would result in:
- A firm has EBIT of ₹ 50,000. Market value of 10% debt is ₹ 80,000 and overall capitalization rate is 20%. Market value of Equity under NOI Approach will be ₹:
- Assume that a firm has accurately calculated the net cash flows relating to an investment proposal. If the net present value of this proposal is greater than zero and the firm in n
- In what order do managers typically perform the managerial functions ?
- "Unity of Command" means:
- Identify the correct sequence of steps in planning. (I) Selecting a course of action (II) Determining alternative courses (III) Establishing objectives (IV) Formulating derivative
- According to Chester Barnard, "............ is a function by which the concern is able to define the role positions" the jobs related and the co-ordination between authority and re
- Which one of the following is not one of Drucker's five guiding principles of management ?
- Major flaw in Scientific theory by Frederick W. Taylor is __________
- According to Henry Fayol, "to manage is" __________
- The systems theory of management believes that each business __________
- A person who develops a long-range course of action or set of goals to align with the organization's vision known as:
- Which of the following is the first phase of the strategic management process ?
- According to Porter, suppliers are more able to exercise bargaining power over buyers when:
- Potential rivals will not find it difficult to enter a market where :
- In Porter's five forces model, what is meant by the term 'substitute'?
- __________ clearly and quickly works through the complexity of key issues, problems and opportunities to affect actions.
- As per Allison and Kaye, "............ is an organization's process of defining its strategy, or direction and making decisions on allocating its resources to pursue this strategy.
- A __________ is a company's road map, indicating both what the company wants to become and guiding transformational initiatives by setting a defined direction for the company's gro
- Under a cost leadership strategy __________
- In __________ importance is given to speed and reliability.
- __________ strategy is to maintain their market position by preserving existing customer base.
- Which of the following strategies is not a human resource management strategy?
- __________ strategy is used when the products are homogeneous in nature and company is not able to differentiate that.
- __________ is the set of guiding principles, driving forces and ingrained attitudes that help to coordinate goals, plans and policies between partners across a given supply chain.
- __________ refers to the process of conducting research on a company and its operating environment to formulate a strategy.
- How often should a SWOT Analysis be performed ?
- 'Build,' 'Hold,' 'Harvest,' and 'Divest' are the strategies pursued in:
- Which is generally the reason for adoption of divestment strategy ?
- What is the term used in Ansoff's matrix for increasing market share with existing products in existing markets ?
- Managers not having control over many activities is a drawback of:
- __________ is a process through which a strategy is put into action.
- McKinsey's 7-S framework helps analyze organizations and improve their effectiveness. The seven elements to be coordinated are: shared values, structure, systems, style.
- In a matrix organization, the functional departments like manufacturing, marketing, accounting and personnel constitute the __________ while the project organization or product div
- __________ is defined as a set of assumptions, beliefs, values and norms which are shared by people and groups in the organization and control the way they interact with each other
- What is the term for the act of recreating a core business process with the goal of improving product output, quality or reducing costs ?
- Which of the following is the objective of Business Process Reengineering (BPR)?
- __________ is an approach to setting goals and measuring the productivity of firms based on best industry practices or against the products, services and practices of their competi
- __________ refers to a process when a company compares itself with the competitors inside its industry.
- A __________ receives that highest level of training in the statistical tools of Six Sigma. They develop the plans for Six Sigma project implementation.
- Which of the following is not a key feature of Total Quality Management ?
- Which of the following is not Benchmarking Wheel stage process ?
- Which of the following is a disadvantage of Enterprise Resource Planning ?
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.