CA Final Advanced Financial Management MTP January 2026: Question Paper and Solutions

How to Prepare for CA Final Advanced Financial Management

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Question directory and available solutions

40 indexed questions. Open a question to read its full statement and available answer.

1. X and Y are two friends. Since Y has earned a lot of profit from trading in financial derivative market, X is also considering speculating on Gamma…
2. P Ltd. is studying the possible acquisition of Q Ltd. by way of merger. The following data are available: Firm After-tax earnings No. of equity…
3. The following information is available in respect of Bond A and Bond B. Bond A Bond B Face value, redeemable at par 1000 1000 Coupon rate, payable…
4. XYZ Ltd. is a mid-sized manufacturing company that produces industrial equipment. The company is considering a new investment project—a…
5. True Life Inc., a US based company, has won a contract to implement a project in India. The project will require an initial investment of 8000…
6. XY Ltd., paid a dividend of 3for the current year. The dividend is expected to grow at 30% for the next 5 years and at 15% per annum thereafter. The…
7. Explain the various steps involved in the Business Succession Strategy.
8. The Closing values of NSE Nifty from 2nd January, 2024 to 12th January, 2024 were as follows: Days Date Day Nifty 1 2 TUE 21,742 2 3 WED 21,665 3 4…
9. A firm is considering a proposal to set up a cement manufacturing plant with an initial investment of 150 crore. The firm has the option to abandon…
10. Explain how Distributed Ledger Technology (DTL) is already in use in fields like financial services, healthcare, travel industry and economic…
11. A Japanese company imports hi-tech printer cartridges from US worth $1 million. The chief financial officer of the company wishes to know the best…
12. Shares of V Ltd. are being quoted at a trailing Price Earning (PE) ratio of 8 times. The company retains 5 per share which is 45% of its Earning Per…
13. Explain Berkus Approach for valuing Startups.
14. Explain two approaches that are used to calculate External Funding Requirement (EFR) and the type of funding.
15. A company is considering Projects X and Y with following information: Project Expected NPV (₹) Standard deviation X 1,22,000 90,000 Y 2,25,000…
16. ANP Plan, a hedge fund currently has assets of 20 crore. CA. X, the manager of fund charges fee of 0.10% of portfolio asset. In addition to it he…
17. Explain the advantages and disadvantages of Foreign Currency Convertible Bonds.
18. Mr. Abhishek is interested in investing - 2,00,000 for which he is considering following three alternatives: (i) Invest 2,00,000 in Mutual Fund X…
19. XYZ Limited borrows £15 Million of six months SONIA + 10.00% for a period of 24 months. The company anticipates a rise in SONIA, hence it proposes…
20. PQR Ltd. is considering a project in US, which involve an initial investment of 124.50 Crore. The project will have useful life of 5 years Current…
21. SAM Ltd. has just paid a dividend of 2 per share and it is expected to grow @ 6% p.a. After paying dividend, the Board declared to take up a project…
22. The data given below relates to a convertible bond: Face value 450 Coupon rate 15% No. of shares per bond 25 Market price of share 20 Straight value…
23. Grow More Ltd. an NBFC is in the need of funds and hence it sold its receivables to MAC Financial Corporation (MFC) for 100 million. MFC created a…
24. Following information is related to actions taken in different situation of financial options: Situation Action Exercise Price Premium Spot Price I…
25. A company is considering hedging its foreign exchange risk. It has made a purchase on 1st July, 2024 for which it has to make a payment of US$…
26. On 20.10.2024, the balance in NOSTRO account with XYZ Bank in London was GBP 80000 and the balance in overbought was GBP 50000. During the day the…
27. Bank A enter into a Repo for 14 days with Bank B in 10% Government of India Bonds 2028 @ 5.65% for 8 crore. Assuming that clean price (the price…
28. Explain the concept of Unicorn.
29. The closing value of a Stock Market Index for the month of October, 2007 is given below: Date Closing Index Value 1.10.07 2800 3.10.07 2780 4.10.07…
30. Explain the benefits of Securitization from the angle of originator.
31. XY Ltd., is interested in expanding its operation and planning to install a unit at US. For the proposed project, it requires a fund of $ 15 million…
32. ABC Ltd. has been maintaining a growth rate of 10 percent in dividends. The company has paid dividend @3 per share. The rate of return on market…
33. Explain why applying the three most common globally accepted business valuation methods is challenging when valuing a startup. Or Explain some…
34. Cyber Company is considering two mutually exclusive projects. Investment outlay of both the projects is 5,00,000 and each is expected to have a life…
35. An investor purchased 300 units of a Mutual Fund at 12.25 per unit on 31st December, 2019. As on 31st December, 2020 he has received - 1.25 as…
36. Explain the benefits of International Financial Centre.
37. The total market value of the equity share of O.R.E. Company is 60,00,000 and the total value of the debt is 40,00,000. The treasurer estimate that…
38. XY Ltd. is planning to expand its operations in view of growing demand for its products. For this purpose, it is considering to borrow an amount of…
39. Consider a portfolio consisting of a - 200,00,000 investment in share XYZ and a - 200,00,000 investment in share ABC. The daily standard deviation…
40. During the audit of the Weak Bank (W), RBI has suggested that the Bank should either merge with another bank or may close down. Strong Bank (S) has…