CA Final Advanced Financial Management MTP May 2025: Question Paper and Solutions

How to Prepare for CA Final Advanced Financial Management

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Question directory and available solutions

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

1. Mr. Ramesh, a 40-year-old investor, has invested - 10,00,000 in an actively managed Equity Mutual Fund. The fund has an Expense Ratio of 2.50% and…
2. On 20.10.2024, the credit balance of an Indian bank in NOSTRO account with LMN Bank in London was £ 1,60,000 and the overbought position was £…
3. Following Financial data are available for PQR Ltd. for the financial year ending 2023: (₹ in lakh) 8% Debentures 125 10% Bonds (2022) 50 Equity…
4. Following are the details of a portfolio consisting of three shares: Share Portfolio weight Beta Expected return in % Total variance A 0.20 0.40 14…
5. Consider a portfolio consisting of a - 200,00,000 investment in share XYZ and a - 2,00,00,000 investment in share ABC. The daily standard deviation…
6. The pricing of securitized instruments is an important aspect of securitization. Explain this statement.
7. JKL Ltd. is considering a project for which the following estimates are available: Particulars ₹ Initial Cost of the project 20,00,00,000 Sales…
8. The risk free rate of return Rf is 9 percent. The expected rate of return on the market portfolio Rm is 13 percent. The expected rate of growth for…
9. Explain the concept of "Cost of Carry" in Futures pricing. Also explain the term Contango and Backwardation markets.
10. On 1st April 2023 Fair Return Mutual Fund has 8,00,000 units and is having the following assets with (respective prices) at 4.00 p.m. Shares No. of…
11. There is a privately held company X Pvt. Ltd that is operating into the retail space, and is now scouting for angel investors. The details pertinent…
12. Describe briefly the Dow Theory for technical analysis and how it classifies the market movements. Or Explain briefly the concept of the Efficient…
13. A multinational company is planning to set up a subsidiary company in India (where hitherto it was exporting) in view of growing demand for its…
14. Details about portfolio of shares of an investor is as below: Shares No. of shares (lakh) Price per share Beta A Ltd. 3.00 500 1.40 B Ltd. 4.00 750…
15. BA Ltd. and DA Ltd. both the companies operate in the same industry. The Financial statements of both the companies for the current financial year…
16. TM Fincorp has bought a 6 x 9100 crore Forward Rate Agreement (FRA) at 5.25%. On fixing date reference rate i.e. MIBOR turns out be as follows:…
17. Closing values of NSE Nifty from 6th to 17th day of the month of January of the year 2020 were as follows: Days Date Day Sensex 1 6 THU 14522 2 7…
18. Sun Ltd. is planning to import equipment from Japan at a cost of 3,400 lakh yen. The company may avail loans at 18 percent per annum with quarterly…
19. Why do traditional lenders like banks hesitate to finance startup? List out what alternative financing options are available to entrepreneurs?
20. Zenith Capital, a boutique investment firm, manages portfolios for high-net-worth individuals (HNIs). Their lead portfolio manager, Mr. R, has been…
21. An American institutional investor is exploring investment opportunities in different countries. Before proceeding, they believe a thorough analysis…
22. Suppose you are a risk manager at a financial institution, and your company has loaned a significant amount of 500 crore to a company X Ltd. for a…
23. Zaz plc, a UK Company is in the process of negotiating an order amounting €2.8 million with a large German retailer on 6 month's credit. If…
24. Calculate the value of share from the following information: Profit after tax of the company 290 crores Equity capital of company 1,300 crores Par…
25. Explain briefly the role of a Special Purpose Vehicle (SPV) in securitization?
26. Following information is related to the 7.50% Convertible bond of S Ltd. which is currently priced at 5300 per bond: Conversion Parity Price =…
27. Constant Engineering Ltd. has developed a high tech product which has reduced the Carbon emission from the burning of the fossil fuel. The product…
28. How can a company identify and manage counterparty risk effectively?
29. A Mutual Fund is holding the following assets in ₹ Crores: Investments in diversified equity shares 90.00 Cash and Bank Balances 10.00 100.00 The…
30. Derivative Bank entered into a plain vanilla swap through on OIS (Overnight Index Swap) on a principal of 15 crores and agreed to receive MIBOR…
31. Explain various strategies options available for foreign exchange exposure management.
32. What are the key factors that influence corporate-level strategy decisions?
33. 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…
34. On 1st April 2024, an open-ended scheme of mutual fund had 600 lakh units outstanding with Net Assets Value (NAV) of 37.50. At the end of April, it…
35. T Ltd. and E Ltd. are in the same industry. The former is in negotiation for acquisition of the latter. Important information about the two…
36. The market received rumour about ABC corporation's tie-up with a multinational company. This has induced the market price to move up. If the rumour…
37. XY Limited is engaged in large retail business in India. It is contemplating for expansion into a country of Africa by acquiring a group of stores…
38. 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…
39. What are the advantages of bringing Venture Capital in the company?