CA Final Advanced Financial Management MTP May 2024: Question Paper and Solutions

How to Prepare for CA Final Advanced Financial Management

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Question directory and available solutions

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

1. Mr. Y has invested in the three mutual funds (MF) as per the following details: Particulars MF 'X' MF 'Y' MF 'Z' Amount of Investment (₹) 4,00,000…
2. ABC Ltd. is planning to expand its business and therefore raising fund by issuing a convertible bond of 10 crore. An investor “Mr. X” is interested…
3. Suppose you are a financial consultant and following 3 clients have approached to you seeking advise on the investment to be made in securities. All…
4. AES Ltd. wants to acquire DNF Ltd. and has offered a swap ratio of 1:2 (0.5 shares for every one share of DNF Ltd.). Following information is…
5. XYZ Ltd. an Indian firm needs to pay JAPANESE YEN (JY) 1 crore on 30th June. In order to hedge the risk involved in foreign currency transaction,…
6. The expected returns and Beta of three stocks are given below Stock A B C Expected Return (%) 20 13 17 Beta Factor 1.9 0.8 1.4 If the risk-free rate…
7. What do you mean by the term Unicorn? State the features a Start-up should possess to be referred as a Unicorn?
8. DK Ltd. is considering an investment proposal in Sri Lanka involving an initial investment of LKR 25 billion. The current spot exchange rate is…
9. On the basis of the following information: Current dividend (Do) = 5Discount rate (k) = 10.5%Growth rate (g) = 4% (i) Calculate the present value of…
10. Explain the concept of Sustainable Growth Rate and also state assumptions of Sustainable growth model.
11. Mr. X is interested in investing - 4,00,000 for which he is considering following three alternatives: (i) Invest - 4,00,000 in Security A (ii)…
12. Either Tokenization to some extent resembles the process of Securitization. Explain the term "Tokenization" and also illustrate the similarities…
13. ABC Ltd. has 600 million, 12 per cent bonds outstanding with six years remaining to maturity. Since interest rates are falling, ABC Ltd. is…
14. Mr. A established the following strategy on the stock of D Ltd. which is currently trading at 1000 per share: (1) Purchased one 3-month call option…
15. List out the areas where the concept of Value at Risk (VAR) can be applied?
16. Following information is given in respect of Alpha Ltd., which is expected to grow at a rate of 20% p.a. for the next three years, after which the…
17. A trader is having in its portfolio shares worth 170 lakhs at current price and cash 30 lakhs. The beta of share portfolio is 1.6. Evaluate: (i)…
18. Suppose a dealer quotes ‘All-in-cost' for a generic swap at 8% against six-month MIBOR flat. If the notional principal amount of swap is 10,00,000.…
19. The Textile Manufacturing Company Ltd. is considering one of two mutually exclusive proposals, Projects M and N, which require cash outlays of…
20. During one business meeting at XYZ Ltd., one of the member pointed out that while evaluating the performance of any company one should not only see…
21. On 1 October 2023 Mr. X an exporter enters into a forward contract with a BNP Bank to sell US$ 1,00,000 on 31 December 2023 at 85.40/$. However, due…
22. A US parent company has subsidiaries in France, Germany, UK and Italy. The amounts due to and from the affiliates is converted into a common…
23. You as an investor had purchased a 4-month call option on the equity shares of ABC Ltd. of 10, of which the current market price is 660 per share…
24. Share of Beta Ltd. is being quoted at a Price-Earning ratio of 10 times. In the coming year the company is expected to retain 10 per share which is…
25. Why is there a need for succession planning in business? Explain.
26. On January 28, 2023, an importer customer requested a Bank to remit Singapore Dollar (SGD) 2,500,000 under an irrevocable Letter of Credit (LC).…
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. What are the parameters to identify currency risk? List out the ways to minimize such risk.
29. Suppose that economy A is growing rapidly, and you are managing a global equity fund and so far you have invested only in developed-country stocks…
30. An investor has two portfolios known to be on minimum variance set for a population of three securities X, Y and Z having below mentioned weights:…
31. Briefly explain Blockchain transaction. List the risks associated with Blockchain. OR Explain briefly the financial measures that help in evaluation…
32. Your client is holding the following securities: Particulars of Securities Cost ₹ Dividends/ Interest ₹ Market price at the end of holding period ₹…
33. XYZ Plan, a hedge fund currently has assets of 40 crore. Mr. A, the manager of fund charges fee of 0.10% of portfolio asset. In addition to it he…
34. What do you mean by Corporate Level Strategy. Also explain three basic questions Corporate Level Strategy should be able to answer.
35. T plc wants to acquire L plc. The balance sheet of L plc as on 31st March 2022 is as follows: Liabilities £ Assets £ Equity Capital (35,00,000…
36. A mutual fund company introduces two schemes i.e. Dividend plan (Plan-D) and Bonus plan (Plan-B). The face value of the unit is 10. On 1-4-2018 Mr.…
37. R Ltd. is considering a project with the following Cash flows: in ₹ Years Cost of Plant Recurring Cost Savings 0 20,000 1 8,000 24,000 2 10,000…
38. Bank entered a plain vanilla swap through on OIS (Overnight Index Swap) on a principal of 20 crores and agreed to receive MIBOR overnight floating…