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

How to Prepare for CA Final Advanced Financial Management

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Question directory and available solutions

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

1. P Ltd. is studying the possible acquisition of Q Ltd. which is also in same industry by way of merger. The following data are available: Firm…
2. Mr. A is interested in investing - 10,00,000 for which he is considering following three alternatives: (i) Invest - 10,00,000 in Mutual Fund X (MFX)…
3. 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…
4. KLM Ltd., is considering taking up one of the two projects-Project-A and Project-B. Both the projects having same life require equal investment of…
5. In International Monetary Market an international forward bid for December 15 on pound sterling is $ 1.2816 at the same time that the price of IMM…
6. State the difference between Peer-to-peer lending and Crowdfunding?
7. EFD Ltd. is an export business house. The company prepares invoice in customers' currency. Its debtors of US$. 10,000,000 is due on April 1, 2025.…
8. Financial Risk can be evaluated from different points of views. Explain.
9. Following Financial data are available for PQR Ltd. for the year 2018: (in lakh) 8% debentures 1250 10% bonds (2017) 500 Equity shares (100 each)…
10. Critically evaluate the various types of risks inherent in a Securitization transaction.
11. Eagle Ltd. reported a profit of 770 lakhs after 30% tax for the financial year 2021-22. An analysis of the accounts revealed that the income…
12. State the challenges to the Efficient Market Theory.
13. State the key decisions falling within the scope of financial strategy.
14. Critically examine the concept of Credit Default Swaps (CDSs). Analyze their structural features and evaluate the key purposes for which CDS…
15. 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…
16. Advise Mr. S a speculator the net position to be taken on the Index Future that will give a complete hedge against the following transactions: (i)…
17. Mr. A will need 1 Crore after two years for which he wants to make one-time necessary investment now. He has a choice of two types of bonds. Their…
18. Suppose a dealer quotes ‘All-in-cost' for a generic swap at 8% against six month SOFR flat. If the notional principal amount of swap is $ 5 Million.…
19. You are an investment analyst working for a financial advisory firm. You have been asked to analyze the bond market's yield curve to assist your…
20. Mr. X, an investor buys the stocks of WBL Limited worth - 21,60,000 due to very strong fundamentals. Since last 3 months, the market sentiment is…
21. A Ltd. paid a dividend of 5for the last year. The dividend is expected to grow at 25% for the next 6 years and at 10% per annum thereafter. The…
22. On 3 rd April, 2025, Royal Bank quotes the following: Bid Ask Spot Exchange Rate (US$ 1) 84.2525 85.5945 2 months' swap points 60 80 3 months' swap…
23. A Ltd. is planning to borrow an amount of 300 crores for a period of 3 months in the coming 6 months' time from now. The current rate of interest is…
24. The Investment portfolio of a Fund is as follows: Government Bond Coupon Rate (%) Purchase Rate (FV 100 per Bond) Duration (Years) GOI 2026 11.68…
25. Identify the type of risks to which the Bond Funds are exposed to.
26. You, a foreign exchange dealer of your bank, are informed that your bank has sold a T.T. on Copenhagen for Danish Krone 10,00,000 at the rate of…
27. Explain main features of the Value at Risk (VaR).
28. D and Co.is a company which installs pipes for supply of oxygen in the hospitals as per their specifications. It is planning to invest 40 crore in a…
29. Explain the features of Securitization.
30. A has portfolio having following features: Security β Random Error σe i Weight L 1.60 7 0.25 M 1.15 11 0.30 N 1.40 3 0.25 K 1.00 9 0.20 If the risk…
31. Carry out a comparative evaluation of three different policies of portfolio rebalancing on the basis of following three points: Pay-off…
32. Explain the concept of ‘Unicorn' and its main features. Or Explain Venture Capital method for valuing startups.
33. 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…
34. The data given below relates to a convertible bond: Face value 250 Coupon rate 12% No. of shares per bond 20 Market price of share 12 Straight value…
35. Mr. X is of the opinion that market has recently shown the Weak Form of Market Efficiency. To test the validity of his impression he has collected…
36. Derivative Bank entered into a plain vanilla swap through on OIS (Overnight Index Swap) on a principal of 10 crores and agreed to receive MIBOR…