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

How to Prepare for CA Intermediate Financial Management and Strategic Management

Solving past MTPs, RTPs, and suggested answers from previous examination windows is essential to mastering time management under the time limit applicable to your exam paper. Review step-by-step working notes, legal case precedents, and accounting disclosures with instant 24/7 AI tutor assistance via CApex.

Question directory and available solutions

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

1. ABC Ltd., a high-end furniture manufacturer specializes in classic, handcrafted designs that combine style and utility. The company, which was…
2. A company has a debt-to-equity ratio of 2:1. It plans to raise additional capital such that the overall debt-to-equity ratio becomes 1:1. Assuming…
3. A company has annual credit sales of 6,00,00,000. The average collection period is 90 days. A factor offers to buy the receivables with a 2%…
4. A company's current market price per share is 200. It just paid a dividend of 10, and dividends are expected to grow at a constant rate of 5% per…
5. Profitable FMCG company PQR Ltd. is examining its dividend policy considering potential future investment opportunities. The company's objective is…
6. Gagan Pvt. Ltd. gives you the following information relating to the year ending 31 st March, 2025: (1) Current Ratio 2.5:1 (2) Debt-Equity Ratio 1:2…
7. Wint Limited is a mid-sized manufacturing company specializing in industrial equipment parts. It operates on a just-in-time procurement strategy but…
8. Majestic Ltd., a manufacturing company, is evaluating its financial performance and considering an expansion plan. The financial controller provides…
9. What is venture capital financing? Briefly describe its characteristics.
10. A company issues: 15% convertible debentures of 100 each at par with a maturity period of 6 years. On maturity, each debenture will be converted…
11. The following data relates to two companies belonging to the same risk class: Particulars A Ltd. B Ltd. Expected Net Operating Income 19,00,000…
12. A finance executive of XYZ company claims that “Increasing the firm's current ratio by accumulating more inventory is a sound strategy for improving…
13. Write a short note on financial distress and insolvency.
14. A company is looking to raise funds through an instrument that provides fixed periodic returns to the investor but does not grant voting rights.…
15. A firm is managing its finances and aims to ensure that it has access to funds for the long term. It evaluates various sources like equity, debt,…
16. Introducing "UrbanScape Developers", a new-age contemporary real estate developers, reshaping urban landscapes with groundbreaking projects across…
17. StarLite Electronics noticed changing consumer preferences for energy-efficient appliances. It invested in R&D to develop such products. Months…
18. PrintPro's laser printer division has stable revenue and a high market share, but operates in a slow-growing market. It generates steady cash with…
19. Which of the following is a limitation of strategic management?
20. ABC Corporation, a global technology company, is known for its innovative products and solutions. The company's strategic vision emphasizes being at…
21. ZymaTech Pvt. Ltd., a growing player in the smart home devices industry, seeks to increase its market share amidst strong competition from HomeEdge,…
22. ZephyrFit Pvt. Ltd., a startup founded by three young business graduates, launched a fitness app offering diverse wellness content, including…
23. "Each organization must build its competitive advantage keeping in mind the business warfare. This can be done by following the process of strategic…
24. "International development is expensive and challenging". In the context of the statement, explain the internationalization of business and the…
25. Write a short note on the Key Strategic Drivers of an organization.
26. Differentiation between Strategic Planning and Operational Planning.
27. Explain the 'product market growth matrix' as propagated by Igor Ansoff as a device for identifying growth opportunities for the future.
28. Explain the pointers for navigating change during digital transformation.
29. Aarav Textiles Pvt. Ltd., a global apparel company, faced a revenue decline due to a pandemic. To sustain operations, it outsourced key functions…
30. Medilab Diagnostics Pvt. Ltd., a fast-growing healthcare diagnostics chain in Maharashtra, operates several diagnostic centers, offering services…
31. ABC Ltd. has the following capital structure based on market values: Equity:60 lakhs Debt:40 lakhs Cost of Equity (Retained Earnings): 14% Cost of…
32. A company has the following details: Sales - 50,00,000 Variable Costs - 30,00,000 Fixed Operating Costs - 10,00,000 Interest Expense - 5,00,000 If…
33. XYZ Ltd. has the following data: Earnings per share (EPS):10 Return on equity (ROE): 18% Capitalisation rate (Ke): 15% Dividend payout ratio: 60%…
34. ABC Ltd. is a listed company operating in the FMCG sector. The company is currently facing a dilemma regarding its dividend policy. The financial…
35. Fortune Ltd. has furnished the following information relating to the year ended 31st March, 2024 and 31st March, 2025: 31 st March, 2024 (₹) 31 st…
36. ABC Ltd. has the following capital structure, which is considered to be optimum as on 31st March, 2025. Particulars Amount (₹) 14% Debentures 60,000…
37. ABC Engineering Ltd., a mid-sized capital-intensive manufacturing company, is evaluating the risk-return profile of its operations. The company…
38. The following data are presented in respect of Excellent Automation Ltd.: (₹) Profit before interest and tax 78,00,000 Less: Interest on debentures…
39. Oggy Limited has a current credit sales of 7,20,000. It is considering revising its credit policy. The proposed terms of credit will be "2/10, net…
40. Briefly EXPLAIN the process for analysing Optimal Capital Structure.
41. ABC Ltd. is evaluating two investment opportunities. Project X offers high short-term accounting profits with aggressive cost-cutting measures,…
42. Is there any difference between crowd funding and peer to peer lending? EXPLAIN briefly.
43. A company is currently debt-free and is considering raising 10 crore. As a finance manager, what practical factors would you evaluate before…
44. Nav-Uday Electric Mobility Pvt. Ltd., a family-led company based in Pune, began its journey in 1998 as a modest battery manufacturer. Under the…
45. GreenSprout Organics, a sustainable agriculture company, offers a range of eco-friendly farming products. Its portfolio includes mature products…
46. In his pursuit to expand the family business to Dubai, Dharam Veer Singh, the successor of the renowned architect Late Shri Lala Ram Pal Singh,…
47. A tech startup wants to enter a new market by introducing a new AI-powered product to an entirely new customer segment. Which strategic option best…
48. ABC Corp, a multinational consumer electronics company, is planning to expand its operations into a new country. The company's senior management is…
49. A leading smartphone manufacturer has partnered with a reputed software firm to jointly develop a next-generation AI-enabled operating system. Both…
50. GreenEdge Solutions, a mid-sized technology company, has implemented a new strategic plan focused on achieving sustainable growth and strengthening…
51. Imagine you are a strategic consultant advising a retail company that is facing increasing competition from online retailers. The company is…
52. Changes in environmental forces often require businesses to make modifications in their existing strategies and bring out new strategies. In view of…
53. CDE Holdings operates in various sectors, including manufacturing fitness equipment, organic foods, eco-friendly products and children's educational…
54. Explain the concept of Experience Curve and highlight its relevance in strategic management.
55. Distinguish between Concentric Diversification and Conglomerate Diversification.
56. How can Mendelow's Matrix be used to analyze and manage the stakeholders effectively?