CA Inter Financial Management and Strategic Management MTP May 2025: Question Paper and Solutions

How to Prepare for CA Intermediate Financial Management and Strategic Management

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Question directory and available solutions

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

1. Reema Industries is into trading business. Since its establishment it has seen a phenomenal growth in both its market share and profitability. The…
2. Z Ltd.'s operating income (before interest and tax) is 9,00,000. The firm's cost of debt is 10 per cent and currently firm employs - 30,00,000 of…
3. A company operates at a production level of 1,000 units. The contribution is 60 per unit, operating leverage is 6, and combined leverage is 24. If…
4. A Company issues - 10,00,000, 12% debentures of 100 each. The debentures are redeemable after the expiry of fixed period of 7 years. The Company is…
5. M Ltd. belongs to a risk class for which the capitalization rate is 12%. It has 40,000 outstanding shares and the current market price is 200. It…
6. The following information is available for Punyakalash Limited Margin of Safety 0.40 Financial Leverage 1.50 Debt 1,50,000 Tax Rate 25% Earnings…
7. From the following information for financial year 2023-24, Financial Leverage (FL) = 4 P/V Ratio = 40% Tax rate = 30% Depreciation (part of…
8. Q Ltd. has the following capital structure at book-value as on 31st March 2024: Particulars (₹) Equity share capital (10,00,000 shares) 4,00,00,000…
9. (ii) COMPUTE the new WACC, if the company raises an additional 50 lakhs debt by issuing 12% debentures. This would result in increasing the expected…
10. ABC Pvt. Ltd. is considering relaxing its present credit policy for accounts receivable and is in the process of evaluating two proposed policies.…
11. Perfact Limited is considering a total investment of 27 lakhs. You are required to CALCULATE the level of earnings before interest and tax (EBIT) at…
12. Millenial Limited, a Quick commerce (Q-Comm) startup company engaged into the business of deliveries is in a need of a delivery vehicles. The…
13. EXPLAIN Agency Problem. Also EXPLAIN, how it can be addressed.
14. WHAT is debt securitisation? EXPLAIN the basics of debt securitisation process.
15. EXPLAIN the concept of "Double edged sword” in Financial leverage analysis.
16. DISCUSS optimal capital structure and HOW to analyse it.
17. In the bustling metropolis of Techville, a once small startup named Athena Corporation embarked on a journey that exemplified the essence of…
18. A retail chain notices that its competitors have introduced same-day delivery options. In response, the company quickly adjusts its logistics…
19. You are the head of operations of a company. When you focus on total or aggregate management functions in the sense of embracing the integrated…
20. Which strategy is implemented after the failure of turnaround strategy?
21. XYZ Enterprises operates in multiple industries. Its automobile division functions independently, with separate teams for electric and fuel-based…
22. A Mumbai-based conglomerate, PQR Ltd., has announced a major restructuring of its business operations. The company has decided to split its business…
23. ABC Fashion, a prominent brand in the domestic market, is now venturing into the international arena. As part of its global expansion strategy, the…
24. What are the key characteristics of business products that contribute to the overall competitiveness and dynamics of the market?
25. 'A company's mission statement is typically focused on its present business scope.' Explain the significance of a mission statement.
26. Explain the pointers for navigating change during digital transformation.
27. Differentiate between Concentric diversification and Conglomerate diversification.
28. A company has recently launched a new product in the market. Initially, it faced slow sales growth, limited markets, and high prices. However, over…
29. There are four specific criteria of sustainable competitive advantage that firms can use to determine those capabilities that are known as core…
30. How can Mendelow's Matrix be used to analyze and manage the stakeholders effectively?
31. Ashrav Machines Private Limited (AMPL) was started as Joint venture company in 2017 by a leading group head quartered at Mumbai, engaged into the…
32. Mr. A is holding 2,00,000 shares of ABC Ltd. It is presently trading on NSE at cum dividend price of 100 per share. Mr. A has a policy to re-invest…
33. The details of XYZ Ltd. are as follows: Variable Cost Ratio = 60%Operating Leverage = 5Combined Leverage = 15EBIT = 30,000Tax Rate = 30% Calculate…
34. Out of the following information, calculate Risk free rate: Rm = 10%Ke = 15%β = 2
35. A firm can make investment in either of the following two projects. The firm anticipates its cost of capital to be 10%. The pre-tax cash flows of…
36. Bhanu Limited has issued 50,000; 10% convertible bonds of 100 each with a maturity period of 5 years. At the maturity, the bondholders will have an…
37. CALCULATE the operating leverage, financial leverage and combined leverage from the following data under Situation I and II and Financial Plan A and…
38. The following information is supplied to you: (₹) Total Earnings 2,00,000 No. of equity shares (of 100 each) 20,000 Dividend paid 1,50,000 Price/…
39. Zordon Ltd. has net operating income of 5,00,000 and total capitalization of 50,00,000 during the current year. The company is contemplating to…
40. Following information and ratios are given in respect of Simandhar Limited for the year ended 31.03.2025: Particulars Ratio Liquid Ratio 2.0 Cash…
41. WRITE a short note on internal rate of return.
42. EXPLAIN following types of leases: (i) Sales and Lease Back (ii) Leveraged Lease (iii) Sales-Aid Lease (iv) Close-Ended and Open-Ended Leases
43. EXPLAIN any four Features of Debentures or Bonds.
44. DISCUSS the conflicts in Profit versus Wealth maximization principle of the firm.
45. EXPLAIN in brief the concept of Over Capitalisation.
46. Founded with a dream to bring the world's finest spices to kitchens worldwide, Rachini Group has evolved into a diversified conglomerate, spanning…
47. A multinational corporation is debating whether to invest significant time and resources into developing a new strategic plan. Some argue it diverts…
48. A group of environmental activists consistently raises concerns about a company's environmental impact. While their opinions are acknowledged, they…
49. ABC Corp., a pharmaceutical company, faces strict regulatory approvals before launching a new drug. Meanwhile, government policies promote local…
50. ABC Tech, a leading smartphone manufacturer, is navigating a highly competitive market where innovation and cost efficiency are key. Customers…
51. EcoTrend, a growing e-commerce company, competes with industry giants by offering premium, eco-friendly products at high prices, targeting…
52. Nexora Innovations, a mid-sized IT services firm, decided to implement a cloud-based project management system to enhance collaboration and…
53. NovaTech Pvt. Ltd. is a well-established educational technology (EdTech) company in the India. The company has been performing well in the online…
54. Aarav is planning to launch his new organic food brand. He is evaluating different cities across the country to establish his business in the most…
55. Major core competencies are identified in three areas - competitor differentiation, customer value and application to other markets. Discuss.
56. 'Innovation leads to unnecessary expenses that do not give as many returns.' Do you agree with the statement? Give reasons in support of your answer.
57. Differentiate between Strategy Formulation and Strategy Implementation.
58. What is a strategic vision, and what are the essential components that make it an effective tool for guiding an organization's future?
59. Distinguish between Vision and Mission.