CA Inter Financial Management and Strategic Management MTP May 2026: Question Paper and Solutions

How to Prepare for CA Intermediate Financial Management and Strategic Management

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Question directory and available solutions

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

1. XYZ Limited is a mid-sized manufacturing company operating in the industrial equipment sector. The company has been in operation for over 15 years…
2. The capital structure of JKL Limited consists of 12% debentures of 50 lakhs, 10% preference shares of 25 lakhs, 14% term loan of 15 lakhs and equity…
3. The following information is given for QB Ltd. Earnings per share - 180Dividend per share - 45Cost of capital 17%Internal Rate of Return on…
4. A firm has sales of 75,00,000, variable cost of 42,00,000 and fixed cost of 6,00,000. It has a debt of 45,00,000 at 9% and equity of 55,00,000. Does…
5. The following information pertains to P Limited for the year ended 31 st March, 2025: Particulars Amount Sales 3,60,00,000 Rate of Income Tax 40%…
6. Mr. Raman, a portfolio manager, is analyzing a set of securities using the Capital Asset Pricing Model (CAPM). He has gathered the following…
7. A company wants to invest in a machinery that would cost - 50,000 at the beginning of year 1. It is estimated that the net cash inflows from…
8. Zanshu Ltd. is an all equity financed company with a market value of 25,00,000 and cost of equity (K e ) 21%. The company wants to buyback equity…
9. The following particulars are related to PQR Ltd: Sales - 1,50,00,000Variable Cost - 84,00,000Fixed Cost - 12,00,000 The company has borrowed -…
10. Being a financial controller of Shilpa Limited, they have provided you with the debt collection policy of the debtors' ageing analysis as on the…
11. “The profit maximization is not an operationally feasible criterion.” COMMENT on it.
12. EXPLAIN any four types of Preference Shares along with its Salient Features.
13. A company is analyzing its risk profile using combined leverage. It observes that its Degree of Operating Leverage (DOL) is low while its Degree of…
14. Pecking order theory suggests that managers may use various sources for raising of fund in an order. EXPLAIN the preferred order of financing…
15. PlaySphere Interactive was founded in Bangalore in 2010 as a small startup developing mobile puzzle games for local users. For several years, its…
16. Bright Screens' LED TV division has high market share in a fast-growing electronics segment. It invests heavily in advertising and R&D to stay ahead…
17. A company has strong R&D capability, but competitors can easily replicate its products. However, its organisational culture enables continuous…
18. What is the critical final step in Kurt Lewin's three-step model for institutionalizing organizational change?
19. A strategic analyst wants to study the competitive positioning of companies in the smartphone industry based on price range and product features.…
20. A Mumbai-based conglomerate, PQR Ltd., has announced a major restructuring of its business operations. The company has decided to split its business…
21. GreenHarvest Foods, a well-established organic food company in the domestic market, is planning to expand globally. As part of its international…
22. “A well-defined vision and mission statement provide direction and purpose to an organization." Explain the significance of vision and mission…
23. "A close and continuous interaction between a business and its environment helps in strengthening the business firm and using its resources more…
24. Write a short note on the Key Strategic Drivers of an organization.
25. "International development is expensive and challenging". In the context of the statement, explain the internationalization of business and the…
26. Explain the 'product market growth matrix' as propagated by Igor Ansoff as a device for identifying growth opportunities for the future.
27. Why Strategic Performance Measures are essential for organizations?
28. Why is change management crucial during digital transformation, and what are some key strategies for navigating change effectively?
29. Orion Manufacturing Ltd., a mid-sized engineering company, is facing increasing competition and rising labour costs. To improve efficiency and…
30. The shares of Ritik Ltd. are presently traded at 64 and the company is expected to pay dividends of 6 per share with a growth rate expected at 12%…
31. X Ltd. is considering the following two alternative financing plans: Plan – I (₹) Plan – II (₹) Equity shares of 10 each 4,00,000 4,00,000 12%…
32. The following information is provided by the DVP Ltd. for the year ending 31st March, 2025. Raw Material storage period 50 days Work in progress…
33. DCF Limited has its Earnings Before Interest and Taxes (EBIT) of 60,00,000. The company is evaluating options to introduce debt financing in its…
34. Zenith Manufacturing Ltd., a mid-sized production company, is currently reviewing the impact of its capital structure on profitability and risk. The…
35. PQR Limited has the following Balance Sheets as on March 31, 2026 and March 31, 2025: Balance Sheet ₹ in lakhs March 31, 2026 March 31, 2025 Sources…
36. A company is in the process of finalising its financial strategy for the upcoming year, with a particular focus on balancing profitability and…
37. EXPLAIN the 'Aging Schedule' in the context of monitoring of receivables.
38. The capital structure of RST Ltd., as at 31st March, 2025, is as under: Particulars ₹ Equity Share Capital (100 each) 6,00,00,000 10% Cumulative…
39. Vista Limited's retained earnings per share for the year ending 31.03.2023 being 40% is 3.60 per share. Company is foreseeing a growth rate of 10%…
40. DISCUSS the features of international funding and angel financing in the context of corporate financing.
41. The treasury department of a business concern has evolved its importance over the years from being responsible for only cash handling issues to…
42. DISCUSS the dividend-price approach, and earnings price approach to estimate cost of equity capital.
43. OR (c) 'Operating risk is associated with cost structure, whereas financial risk is associated with capital structure of a business concern.'…
44. InnovateCo, a $4 billion multinational company headquartered in London, operates as a diversified conglomerate, with its primary business segments…
45. A small e-commerce startup is entering a highly competitive online retail market. The market is dominated by a few large players with significant…
46. A renewable energy company states: “We aim to lead the global transition towards 100% clean energy in the next 20 years.” However, its current…
47. What is the primary role of strategic management in achieving organizational goals?
48. XYZ Pharmaceuticals plans to launch a new line of affordable medicines. The top management defines long-term expansion plans, while different…
49. Suraj Prakash and Chander Prakash are two brothers engaged in the business of spices. Both have different approaches to management. Suraj Prakash…
50. Karan Malhotra owns a company that operates a chain of organic food restaurants in metropolitan cities. The market has a limited number of premium…
51. Explain the importance of values, as one of the components of strategic intent for a company. What are the common examples of values? How values are…
52. Write short note on SWOT analysis.
53. Which concept explains the efficiency increase gained by workers through repetitive production work, leading to cost reduction and competitive…
54. Write a short note on the role of ADL Matrix in assessing the competitive position of a firm.
55. 'Managing stakeholders is critical to the success of a project'. Explain how Mendelow's Matrix helps in managing stakeholders and categorizing the…
56. York Investors, recognizing the importance of aligning its organizational elements with strategic objectives, has strategically invested in training…
57. OR Merako Appliances recently automated its assembly line to produce kitchen gadgets faster and at lower cost, improving operational efficiency.…