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+[{"source_file": "Inter_P6_FMSM_FM_SM_January_2025_MTP_1_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "January_2025", "text": "TimeAllowed\u20133Hours(Totaltimefor6Aand6B) \nMaximumMarks\u201350 \n1. \nThequestionpapercomprisestwoparts,PartIandPartII. \n2. \nPartIcomprisesCaseScenariobasedMultipleChoiceQuestions(MCQs) \n3. \nPartIIcomprisesquestionswhichrequiredescriptivetypeanswers. \n4. \nWorking note should form part of the answer. Wherever necessary, suitable \nassumptions may be made by the candidates and disclosed by way of note. \nHowever, in answers to Questions in Division A, working notes are notrequired. \n \nPARTI\u2013CaseScenariobasedMCQs(15Marks) \nWrite the most appropriate answer to each of the following multiple \nchoicequestions by choosing one of the four options given. All questions \narecompulsory. \nCaseScenarioI: \nSmallbusCompanyisintomanufacturingminibuses.Sinceitsestablishmentit has seen a \nphenomenal growth in both its market share and profitability. The financial \nstatements (Statement of P&L and Balance Sheet) are shown below. The company \nenjoys the confidence of its shareholders who have been rewarded with growing \ndividends year after year. Last year too, the company had announced \n20percentdividend,whichwasthehighestintheautomobilesector.Thecompany \nhas \nnever defaulted on its loan payments and enjoys a favourable face with its lenders, \nwhich include financial institutions, commercial banks and other private \ndebentureholders.Thecompetitioninthebusindustryhasincreasedinthepast few years \nand the company foresees further intensification of competition with the entry of \nseveral foreign bus manufacturers; many of whom are market leaders intheir \nrespective countries. The mini bus segment especially, will witness entry of foreign \nmajors in the near future, with latest technology being offered to the Indian customer. \nSmall \nbus \ncompany\u2019s \nmanagement \nrealises \nthe \nneed \nfor \nlarge \nscale \ninvestmentinupgradationoftechnologyandimprovementofmanufacturing facilities to \nbeat competition. \nWhile on one hand, the competition in the industry has been intensifying, on theother \nhand, there has been a slowdown in the Indian economy, which has not only \nreducedthedemandforbuses,butalsoledtoadoptionofpricecuttingstrategies by various \nbus manufacturers. \n\n \n \nTheCompanyneeds`3,12,50,000fortheinvestmentintechnologyand \nimprovementofmanufacturingfacilities.Companyhasthreeoptionsforthefunds: \nI \nTheCompanymayissue 31,25,000equitysharesat`10per share. \nII \nTheCompanymayissue15,62,500equitysharesat`10pershareand1,56,250 \ndebentures of ` 100 denomination bearing an 9% rate of interest. \nIII \nTheCompanymayissue15,62,500equitysharesat`10pershareand1,56,250 \npreference shares at ` 100 per share bearing an 10% rate of dividend. \nThe company\u2019s earnings before interest and taxes after investment is \n`37,50,000.Income tax rate applicable to the company is 40%. \nBasedontheabovefacts,themanagementofthecompanyaskedyoutoanswer the \nfollowing questions (MCQs 1 to 5): \n1. \nWhatistheEPSunderfinancialplanI?"}, {"source_file": "Inter_P6_FMSM_FM_SM_January_2025_MTP_1_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "January_2025", "text": "(d) \n`1.20 \n4. \nWhat is the EBIT-EPS indifference points by formulae between Financing PlanI \nand Plan II?"}, {"source_file": "Inter_P6_FMSM_FM_SM_January_2025_MTP_1_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "January_2025", "text": "(d) \n`45,15,253.56 \n\n \n \n5. \nWhat is the EBIT-EPS indifference points by formulae between Financing PlanI \nand Plan III?"}, {"source_file": "Inter_P6_FMSM_FM_SM_January_2025_MTP_1_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "January_2025", "text": "(d) \n`52,08,333.33 \n(5x2=10Marks) \n6. \nA company has a degree of operating leverage is 2 and degree of financial \nleverageis3.Ifthesalesofthecompanyincreaseby5%duringthenextquarter, \nthe \nEarning Per Share (EPS) will increase by?"}, {"source_file": "Inter_P6_FMSM_FM_SM_January_2025_MTP_1_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "January_2025", "text": "(d) \n60% \n(2Marks) \n7. \nFollowingarethedataonacapitalprojectbeingevaluatedbythe \nmanagement \nof \nAman Ltd. \n \nParticulars \nProjectA \nAnnualcostsaving \n`1,80,000 \nUsefullife \n5years \nInternalrateofreturn \n10% \nSalvagevalue \nPVAF(15,4years) \n3.79 \nBasedupontheinformation,thepaybackperiodoftheprojectwillbe"}, {"source_file": "Inter_P6_FMSM_FM_SM_January_2025_MTP_1_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "January_2025", "text": "(a)ABC Industries is a mid-sized company manufacturing consumer goods. \nLast quarter, the company reported sales of \u20b9 2,00,000. The production \nprocess involves significant variable costs, which account for 50% of the \nsales value.Additionally, the company incurs\u20b9 40,000 as fixedoperating \ncosts for rent, utilities, and management expenses. ABC Industries has \nalso borrowed funds, leading to \u20b9 10,000 as annual interest on long-term \ndebt. \nThe company is currently planning to launch a new marketing campaign \naimed at boosting sales by 10%. As a financial analyst at ABC Industries, \nyou are required to: \n1. \nCALCULATEthecombinedleverage. \n2. \nILLUSTRATE the impact of the 10% sales increase using the \ncombinedleverage. \n(5Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_January_2025_MTP_1_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "January_2025", "text": "(b) \nP Ltd. has the following capital structure at book-value as on 31stMarch, \n2024: \n \nParticulars \n(`) \nEquitysharecapital(1,00,000shares) \n10,00,000 \n12%Preferenceshares \n15,00,000 \n10%Debentures \n15,00,000 \n40,00,000 \nAdditionalInformation: \n1. \nTheequitysharesofPLtd.arecurrentlytradedat\u20b9100pershare. \n2. \nThecompanyexpectstopayadividendof\u20b9 5perequitysharenext year, \nwith dividends projected to grow perpetually at a rate of 5%p.a. \n3. \nThecorporatetaxrateis35%. \nRequirements: \n1. \nCALCULATE the Weighted Average Cost of Capital (WACC) based \non the current capital structure. \n2. \nRECALCULATEtheWACCifthecompanyraisesanadditional \n\u20b9 5lakhsofdebtbyissuing12%debentures.Thischangewillresult in: \no \nAn increase in the expected equity dividend to \u20b9 7 per share \nwhile the growth rate remains constant at 5%. \no \nAdecreaseinthemarketpriceofequitysharesto\u20b990per \nshare \n(5Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_January_2025_MTP_1_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "January_2025", "text": "(c) \nVyom Limited, an IT conglomerate, is planning to take over Aryayash \nLimited, a startup company incorporated 2 years ago but holding a lot of \nprospects. To determine the buyout consideration, Vyom Limited has \napproached you as a Finance controller to estimate the fair value of the \nstartup company today based on future earnings estimates. Following \ndetails of the startup company are as below - \nExpected Sales in the coming year are ` 25 lakhs with P/V ratio of 40%. \nThe sales are expected to grow at a rate of 20% for the next 2 years, to \n40% for another 2 years, 25% in the 6thyear and thereafter cash flowswill \ngrow at a steady rate of 10%. Fixed cost for the upcoming year is \nexpected to be 12 lakhs for the first two years, ` 10 lakhs thereafter. Loss \nin any year can be set-off only against the profits of the immediate next \nyear. \nCorporate taxes applicable are 25% & 20% to Vyom Limited & Aryayash \nLimited respectively. Vyom Limited\u2019s desired rate of return is 15% & Cost \nof Capital of Aryayash Limited is 17%. \nAsafinancecontroller,CALCULATEtheFairvalueofAryayashLimited. \n(5Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_January_2025_MTP_1_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "January_2025", "text": "(a)FromthefollowinginformationpertainingtoM/sAnyaCo.Ltd., \nPREPAREitstrading,Profit&LossAccountfortheyearendedon \n31March, \n2024andasummarizedBalanceSheet asatthatdate: \n \nAmt in ` \nCurrent Ratio \n2.5 \nQuickRatio \n1.3 \nProprietaryRatio(FixedAssets/ProprietaryFund) \n0.6 \nGrossProfittoSale Ratio \n10% \nDebtors Velocity \n40days \nSales \n730,000 \nWorking Capital \n120,000 \nBank Overdraft \n15,000 \nShare Capital \n2,50,000 \nClosingStockis10%morethanopeningStock. \nNetProfitis10%ofProprietaryFunds. \n(6Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_January_2025_MTP_1_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "January_2025", "text": "(b) \nParasTMTLtd.isaTMTmanufacturingcompanywithafacevalueof \n`10pershare. \nThefollowinginformationisgivenaboutthecompany: \n\uf0b7 \nThecompanyisexpectedtogrow@10%p.a.fornextfouryears then 5% \nfor an indefinite period. \n\uf0b7 \nRateofreturnexpectedbytheshareholdersontheirshare investments is \n15%. \n\n \n \n\uf0b7 \nCompany paid ` 4 as dividend per share for the current Financial \nYear. \nFINDouttheintrinsicvaluepershare \n(4Marks) \n3. \nZomo Ltd. currently has a turnover of \u20b9 120 lakhs, 75% of which is on credit. \nThevariable costratiois 80%, andthecredit terms offered are 2/10, net 30. On \nthe current sales volume, the bad debts are 1%, and the company spends \n\u20b9 1,20,000 annually on administering its credit sales, including staff \nsalariesforcreditcheckingandcollection.Thesecostsareavoidable. \nInaddition: \n\uf0b7 \n60% of customers avail of the 2% cash discount, and the remaining \ncustomerstake60daysonaveragetopayafterthedateofsale. \n\uf0b7 \nThe book debts are financed by a mix of bank borrowings and owned \nfundsina1:1ratio,withannualcostsof15%and14%,respectively. \nHowever, Zomo Ltd. is also considering dynamic discounting for its cash \ncustomers, which might incentivize more customers to pay earlier byincreasing \nthe discount rate. This could lead to a potential reduction in bad \ndebtsto0.8%butmayalsoincreasethecostofthediscountofferedto2.5%. \nA factoring firm has proposed a deal with the following terms: (i) Factorreserve: \n12% (ii) Guaranteed payment: 25 days (iii) Interest charges: 15% (iv) \nCommission: 4% of receivables. \nIn addition, the company also has the option to extend the credit period for its \nremainingcustomers \n(whodonotavailofthediscount)to75days,which \nmight \nincrease sales by 10% but could result in an increase in bad debts to 1.5%. \nGiven: \n1. \nThecostoffundsisexpectedtoriseto16%nextyear. \n2. \nZomo Ltd. plans to introduce late payment penalties (for customers \nwhotake more than 60 days)at 5% of outstandingreceivables after 60 \ndays. \nAssumea360-dayyear. \nRequired: \n\uf0b7 \nSHOULDZomoLtd.optfordynamicdiscountingorthefactoringfirm\u2019s offer? \n\uf0b7 \nANALYZEtheimpactofextendingthecreditperiodonthecompany\u2019s finances. \nCOMPARE all options and RECOMMEND whether to continue with inhousemanagement,dynamicdiscounting,oracceptthefactoringfirm\u2019soffer. \n(10Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_January_2025_MTP_1_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "January_2025", "text": "(b) \nYou are a financial consultant for a company that has a very high capital \nbase but low earnings per share (EPS). EXPLAIN over-capitalization. \nWhatarethecauses andconsequencesofover-capitalization?\" \n(4Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_January_2025_MTP_1_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "January_2025", "text": "(c) \n\"XYZ Corp. has adopted a strategy to maximize short-term profits by \nincreasingproductpricessignificantly.ANALYZEwhythismightnotbe \nafeasibleoperationalcriterionforsustainablegrowth.\" \n(2Marks) \nOR"}, {"source_file": "Inter_P6_FMSM_FM_SM_January_2025_MTP_1_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "January_2025", "text": "(c) \nDEFINEModifiedInternalRateofReturnmethod. \n(2Marks) \n\n \n \nPAPER6B:STRATEGICMANAGEMENT \n1. \nThequestionpapercomprisestwoparts,PartIandPartII. \n2. \nPartIcomprisescasescenariobasedmultiplechoicequestions(MCQs) \n3. \nPartIIcomprisesquestionswhichrequiredescriptivetypeanswers. \nPART I \u2013 Case scenario based MCQs (15 Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_January_2025_MTP_1_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "January_2025", "text": "Question 1. (A) (Compulsory) \n1. \n(A)EcoForge, a startup specializing in eco-friendly building materials crafted \nfrom agricultural waste, entered the highly competitive manufacturing \nindustry with a vision of promoting sustainability. Despite its innovative \napproach, the company faced significant challenges as a new entrant, \nincluding high production costs, limited market visibility, regulatory \nhurdles, and fierce competition from established players. However, \nthroughstrategicplanningandeffectiveexecution,EcoForge \nsuccessfully \nnavigated these obstacles and positioned itself for sustainable growth. \nThe company\u2019s leadership recognized the importance of understandingits \ninternal strengths and weaknesses, along with external opportunities and \nthreats. \nThis \nanalysis \nrevealed \nEcoForge\u2019s \ncore \nadvantage \nin \nsustainability and innovation, contrasted with scalability issues andmarket \npressure from cheaper alternatives. Additionally, market analysis \nuncovered \nthe \npotential \nof \nurban \nhousing \nprojects \nas \nan \nopportunity,whileintense competition posed asignificant threat. \nEcoForge\u2019s leadership focused on creating unique value propositions by \nemphasizing its eco-friendly materials. This differentiation helped the \ncompany appeal to environmentally conscious builders and developers. \nTo expand its market reach, EcoForge adopted strategies to deepen its \npresence in existing markets and explore new ones. Concurrently, it \nanalyzed the industry landscape and identified the critical influence of \nregulatory \npolicies \nand \nsocio-cultural \nfactors \nshaping \nconsumer \npreferences. \nInternally, EcoForge implemented structural and cultural changes to \nenhance its operational efficiency and responsiveness. By adopting a \nStrategic Business Unit (SBU) model, the company streamlined its \ndecision-making process, allowing each product line to adapt quickly to \nmarket demands. \nRecognizingtheneedforcollaborativeleadership,EcoForge\u2019sCEO, Ms. Aarti \nMehra, invested in leadership training programs for senior managers. This \nshifted \nthe \ncompany\u2019s \nculture \nfrom \nhierarchical \nto \nteam- \ndriven,encouraginginnovationandcross-functionalcollaboration. \nTo enhance its competitiveness, EcoForge optimized its production and \nsupply chain processes by addressing inefficiencies and partnering with \ntechnologyproviders.Theseeffortssignificantlyreducedcostsand \n\n \n \nimproved product quality. Simultaneously, the company pursued green \ncertifications and localized marketing efforts to build brand recognition, \nattracting environmentally conscious clients. Over three years, these \ninitiatives enabled EcoForge to expand into new markets, secure \npartnershipswithleadingdevelopers,andincreaseitsrevenueby40%. \nByintegratingmarketanalysis,operationalimprovements,andafocus on cost \nefficiency, EcoForge transitioned from a struggling startup to a leader in \nsustainable building materials, setting a benchmark for innovation \nandenvironmentalstewardshipintheindustry. \nBased on the above Case Scenario, answer the Multiple-Choice \nQuestions."}, {"source_file": "Inter_P6_FMSM_FM_SM_January_2025_MTP_1_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "January_2025", "text": "(d) \nFocussedDifferentiation \n(2Marks) \n(iii) The case mentions EcoForge identifying \u201ccritical influence of \nregulatory policies and socio-cultural factors shaping consumer \npreferences.\u201d Which strategic analysis framework is most relevant \nhere?"}, {"source_file": "Inter_P6_FMSM_FM_SM_January_2025_MTP_1_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "January_2025", "text": "(d) \nAnsoff\u2019sMatrix \n(2Marks) \n(iv) EcoForge\u2019s strategy to deepen its presence in existing markets and \nexplore new ones corresponds to which growth strategy in Ansoff\u2019s \nMatrix?"}, {"source_file": "Inter_P6_FMSM_FM_SM_January_2025_MTP_1_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "January_2025", "text": "(i) \nThe CEO of GoFlyHigh Airlines has built a high-performance team \nover five years by closely monitoring performance metrics, setting \nclear expectations, and motivating employees through rewards and \nstructured improvement plans. Her disciplined and results-focused \napproach \nhas \ndriven \norganizational \nsuccess \nby \nfostering \naccountabilityandmaintaininghighstandards.Thisleadership \nstyle \nemphasizes \nachieving \ndefined \ngoals \nthrough \na \nstructured \nframework, balancing performance recognition with corrective \nmeasures for sustained excellence. What strategic leadership style \ndoes the CEO exhibit?"}, {"source_file": "Inter_P6_FMSM_FM_SM_January_2025_MTP_1_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "January_2025", "text": "(d) \nIntrapreneurLeadership \n(2Marks) \n(ii) \nUN&T reached out to Mukesh S, an entrepreneur from India to get \nhis team to work on a mega solar energy project and enter India\u2019s \ndeccan plateau which enjoys an abundance of sunshine. What \nstrategy is UN&T trying to implement?"}, {"source_file": "Inter_P6_FMSM_FM_SM_January_2025_MTP_1_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "January_2025", "text": "(d) \nDiversification \n(2Marks) \n(iii) Urbankeyhasauniquecapabilityinrapidprototyping,allowing them to \nbring new products to market faster than the competitors. Such an \nadvantage can be termed as?"}, {"source_file": "Inter_P6_FMSM_FM_SM_January_2025_MTP_1_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "January_2025", "text": "(a)Chic Threads, a boutique fashion brand renowned for its commitment to \nsustainability and ethical practices, has recently launched a new line of \neco-friendlyclothingmadefromrecycledmaterials.Thebrand recognizes the \ngrowing \ninfluence \nof \nenvironmentally \nconsciousconsumerswhoactivelyshapeindustrystandardsthroughtheir \nadvocacy and purchasing decisions. These consumers align with Chic \nThreads'values and have a significant impact on its market position and \nreputation. How should Chic Threads effectively manage its relationship \nwith environmentally conscious consumers, considering their high power \nandhighinterestinshapingthebrand'ssuccess? \n(5Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_January_2025_MTP_1_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "January_2025", "text": "(b) \nYou are a strategic manager for a tech company launching a new \nsmartphone model. The company wants to target tech-savvy consumers \nwho value innovation and cutting-edge technology. Using the concept of \ncustomer behavior, develop a marketing strategy to promote the new \nsmartphone. \n(5Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_January_2025_MTP_1_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "January_2025", "text": "(c) \nGreenEdge Solutions, a mid-sized technology company, hasimplemented \na new strategic plan focused on achieving sustainable growth and \nstrengthening its market presence. The leadership team is determined to \nmonitor the effectiveness of their strategies to ensure they align with the \norganization\u2019s overall goals and objectives. They seek a systematic \napproach \nto \nassess \nkey \nperformance \nareas \ncritical \nto \ntheir \nsuccess.WhatareStrategicPerformanceMeasures(SPM),andhow \ncan \nGreenEdge Solutions effectively use them to evaluate and enhance \nthesuccessoftheirstrategicplan? \n(5Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_January_2025_MTP_1_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "January_2025", "text": "(a)ConnectGroupwasoneoftheleadingmakersofthemobilehandsets till a few \nyears ago and which went at the bottom of the heap. Connect Group \ndidn't adapt to the current market trends, which eventually ledtoits \ndownfall. Which would have helped Connect Group to change, adapt \nandsurvive?Explainthestepstoinitiatethechange. \n(5Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_January_2025_MTP_1_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "January_2025", "text": "(a)EasyAccessisamarketingservicescompanyprovidingconsultancyto a range of \nbusiness clients. Easy Access and its rivals have managed to \npersuadetheGovernmenttorequireallmarketingservicescompanies \nto \ncomplete a time-consuming and bureaucratic registration process and to \ncomply with an industry code of conduct. Do you think that by doingthis \nEasy \nAccess \nandits \nrivals \nhas \nanadvantageinsomewaystofight \noffcompetitors?Explain. \n(5Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_January_2025_MTP_1_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "January_2025", "text": "(a)LeatheriteLtd.wasstartedasaleathercompanytomanufacture \nfootwear. \nCurrently, they are in the manufacturing of footwears for males and \nfemales. The top management desires to expand the business in leather \nmanufacturing goods. To expand they decided to purchase more \nmachines to manufacture leather bags for males and females. Identifyand \nexplain thestrategy opted by the top management of Leatherite Ltd. \n(5Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_January_2025_MTP_1_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "January_2025", "text": "(b) \nMajor core competencies are identified in three areas - competitor \ndifferentiation,customervalueandapplicationtoothermarkets. Discuss. \nOR \nDifferentiationbetweenStrategicPlanningandOperationalPlanning. \n(5Marks)"}]

vector_db_v2/raw_json_backups/Inter_P6_FMSM_FM_SM_January_2025_MTP_2_Questions.json

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+[{"source_file": "Inter_P6_FMSM_FM_SM_January_2025_MTP_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "January_2025", "text": "TimeAllowed\u20133Hours(Totaltimefor6Aand6B) \nMaximumMarks\u201350 \n1. \nThequestionpapercomprisestwoparts,PartIandPartII. \n2. \nPartIcomprisesCaseScenariobasedMultipleChoiceQuestions(MCQs) \n3. \nPartIIcomprisesquestionswhichrequiredescriptivetypeanswers. \n4. \nWorking note should form part of the answer. Wherever necessary, suitable \nassumptions may be made by the candidates and disclosed by way of note. \nHowever, in answers to Questions in Division A, working notes are notrequired. \n \nPARTI\u2013CaseScenariobasedMCQs(15Marks) \nWrite the most appropriate answer to each of the following multiple \nchoicequestions by choosing one of the four options given. All questions \narecompulsory. \nCaseScenarioI: \nMNP Ltd. is a multinational company having its operations spread mostly in Indiaand \nneighbouring countries of India. The promotors of the company believed that \ncapitalstructureofacompanymustbekeptflexibleandbalanced,whereproper mix should \nalways be maintained between debt and equity. Such mix of debt and equity should \nbe reviewed from time to time keeping in mind the changing situationof India and the \nglobal scenario. \nThecapitalstructureofMNPLtd.isasunder: \n \n9%Debentures \nRs. 2,75,000 \n11%Preferenceshares \nRs. 2,25,000 \nEquityshares(facevalue:Rs.10pershare) \nRs. 5,00,000 \nTotalcapitalofthecompany \nRs. 10,00,000 \nThe following aresome of the additional information provided by MNP Ltd.relatingto \nthe above mentioned capital structure."}, {"source_file": "Inter_P6_FMSM_FM_SM_January_2025_MTP_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "January_2025", "text": "(i) \nRs. 100 per debenture redeemable at par has 2% floatation cost and 10 years \nof maturity.Themarket priceper debentureis Rs.105. \n(ii) \nRs.100perpreferenceshareredeemableatparhas3%floatationcostand \n10yearsofmaturity.ThemarketpriceperpreferenceshareisRs.106. \n\n \n \n(iii) Equity share has Rs. 4 floatation cost and market price per share of Rs. 24.The \nnext year expected dividend is Rs. 2 per share with an annual growth of \n5%.Thefirmhasapracticeofpayingallearningsintheformofdividends. \n(iv) CorporateIncome-taxrateis35%. \nSince the company is a multinational company market value weights are preferred \nover book value weights when calculating the Weighted Average Cost of Capital \n(WACC) for several reasons. The company believes that market values reflect the \ncurrentmarketperceptionofacompany'sfinancialhealthandfutureprospects. \nThisismorerelevantforcalculatingthecostofcapitaltoday,asinvestorsbase \ntheir \ndecisions on current market conditions. Book values, based on historical accounting \nprinciples, may not accurately represent the true economic value of the company's \ncapital components. Market values capture the actual cost that a company would \nincur if it were to raise new capital in the current market. Bookvalues might not reflect \nthe \ntrue \ncost \nof \ndebt \ndue \nto \nfactors \nlike \nchanges \nin \ninterest \nratesorcreditworthiness.Similarly,bookvalueofequitymightnotreflectthe \ncurrent \ninvestor expectations for future dividends and growth. Market values are readily \navailable through stock prices and market interest rates. Obtaining accurate \nbookvalues,especiallyforintangibleassets,canbeacomplexandtime- \nconsuming \nprocess. \nOn the basis of this information provided above you are required to answer the \nfollowing MCQs (1 to 5): \n1. \nCalculatethecostofequityandchoosethecorrectanswerfromthefollowing?"}, {"source_file": "Inter_P6_FMSM_FM_SM_January_2025_MTP_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "January_2025", "text": "(d) \n10.55% \n5. \nWhat will be the current market price of MNP Ltd.\u2019s equity shares if Ke = 10%, \nexpected dividend is Rs. 2 per share and annual growth rate is 5% from the \nfollowing options:"}, {"source_file": "Inter_P6_FMSM_FM_SM_January_2025_MTP_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "January_2025", "text": "(d) \n45pershare \n(5x2=10Marks) \n6. \nEBIT \n=4,00,000 \nEBT \n=3,00,000 \nSales \n=16,00,000 \nWhichofthefollowingis/arecorrect? \n1. \nDFLis1.33 \n2. \nInterestcoverageratiois3 \n3. \nOperatingprofitmarginis25% \nSelectthecorrectanswerusingthecodegivenbelow:"}, {"source_file": "Inter_P6_FMSM_FM_SM_January_2025_MTP_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "January_2025", "text": "(d) \n3only \n(2Marks) \n7.If velocity of stock is 3 months, annualsales amount to Rs.6 lakh at 20% gross \nprofitmarginandopeningstockisRs.90,000;whatistheclosingstockvalue?"}, {"source_file": "Inter_P6_FMSM_FM_SM_January_2025_MTP_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "January_2025", "text": "(a) \nThe financial statement and operating results of Alpha Limited \nrevealedthe following position as on 31st March, 2023: \n \n\u2014 \nEquity share capital (Rs. 10 fully \npaid share) \nRs.20,00,000 \n\u2014 \nWorkingcapital \nRs.6,00,000 \n\u2014 \nBankoverdraft \nRs.1,00,000 \n\u2014 \nCurrentratio \n2.5:1 \n\u2014 \nLiquidityratio \n1.5:1 \n\u2014 \nProprietary ratio (Net fixed \nassets/Proprietary fund) \n.75:1 \n\u2014 \nCostofsales \nRs.14,40,000 \n\u2014 \nDebtorsvelocity \n2months \n\u2014 \nStock turnover based on cost of \nsales \n4times \n\u2014 \nGrossprofitratio \n20%ofsales \n\u2014 \nNetprofitratio \n15%ofsales \nClosing stock was 25% higher than the opening stock. There were also \nfree reserves brought forward from earlier years. Current assets include \nstock, debtors and cash only. The current liabilities expect bank overdraft \ntreated as creditors. \nExpensesincludedepreciationofRs.90,000. \nThe following information was collected from the records for the year \nended 31stMarch, 2024: \n \n\u2014 Totalsalesfortheyearwere20%higherascomparedtoprevious \nyear. \n\u2014 Balances as on 31st March, 2024 were : Stock Rs. 5,20,000, \nCreditors Rs. 4,15,000, Debtors Rs. 4,95,000 and Cash balance \nRs. 3,10,000. \n\u2014 Percentage of Gross profit on turnover has gone up from 20% \nto25% andratio of net profit to sales from 15% to 16%. \n\u2014 A portion of Fixed assets was very old (book values Rs. 1,80,000) \ndisposed for Rs. 90,000. (No depreciations to be provided on this \nitem). \n\u2014 Long-terminvestmentswerepurchasedforRs.2,96,600. \n\u2014 Bankoverdraftfullydischarged. \n\n \n \n \n\u2014 PercentageofdepreciationtoFixedassetstobeprovidedatthe \nrateinthepreviousyear. \nPREPAREBalanceSheetason31stMarch,2023and31stMarch,2024. \n(5Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_January_2025_MTP_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "January_2025", "text": "(b) \n Theta Limited is expecting an annual earning of Rs. 3 Lakhs before \npaying any interest and taxes. The company has Rs. 10 lakhs of 10% \ndebentures in its capital structure. The capitalisation rate is 12.5%. You \nare required to calculate the value of Theta Limited as per the NI \napproach.Also,COMPUTEtheoverallcostofcapital. \n(5Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_January_2025_MTP_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "January_2025", "text": "(c) \nThefollowingdatarelatestoBetaLimited: \nRs. \n \nSales \n2,00,000 \nLess:VariableExpenses(30%) \n60,000 \nContribution \n1,40,000 \nFixedoperatingexpenses \n1,00,000 \nEBIT \n40,000 \nLess:Interest \n5,000 \nEBT \n35,000"}, {"source_file": "Inter_P6_FMSM_FM_SM_January_2025_MTP_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "January_2025", "text": "(i) \nCALCULATEbywhatpercentagewillEBTincreaseifsalesincreases by \n6 percent. \n(ii) \nCALCULATEbywhatpercentagewillEBITincreaseifthereis10per cent \nincrease in sales? \n(iii) \nCALCULATEbywhatpercentage EBTincrease ifEBITincreasesby \n6percent? \n(5 Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_January_2025_MTP_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "January_2025", "text": "(a)ABC Ltd., anewlyformed companyhas applied to the Private Bankfor the first \ntime for financing it\u2019s Working Capital Requirements. Thefollowing \ninformation \nis \navailable \nabout \nthe \nprojections \nfor \nthe \ncurrentyear:EstimatedLevelofActivityCompletedUnitsofProduction31,200. \n \nRawMaterialCost \nRs40perunit \nDirectWagesCost \nRs25perUnit \nOverhead \nRs40perUnit(InclRs10of \nDepreciation) \nSellingPrice \nRs150perunit \nGPRatio(CashCost) \n30% \nNetProfit Ratio \n25%(OnTotal cost) \nRawMaterialin Stock \nAvgof30daysconsumption \nWorkinProgressStockat30%ofFG \nProduced Units \n**ValuedatPrimeCost \nMaterial\u201390%into process \n\n \n \nRelevantConversionCost\u2013 \n60% completed \nFinishedGoodsStock \n2,500 units \nCreditAllowedbythesupplier \n30Days \nCreditAllowedto Purchasers \n45Days \nDirectWages[Lagin payment] \n15Days \nExpectedCash Balance \n1,25,000 \nSafety margin is to be kept at 15% of the net working capital required \ninclusive of the margin amount. Assume that production is carried on \nevenly throughout the year (360 days) and wages and overheads accrue \nsimilarly. All sales are on the credit basis. You are required to \nCALCULATEtheNetWorkingCapitalRequirement. \n(6Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_January_2025_MTP_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "January_2025", "text": "(b) \nReturn \non \nEquity \n(ROE) is \nSatva \nLimited \nis \n15% \nand \nthe \ncapitalizationrateapplicabletothecompanyisat20%.SatvaLimited\u2019sBookVal\nue per share (BVPS) is Rs 125. Calculate the intrinsic value of the share \ntoday using Gordon\u2019s model and Walter\u2019s modelif the company\u2019s \npolicyistoretain65%oftheearning. \n(4Marks) \n3. \nHemsparsh Private Limited is globally recognized consultancy firm having its \npresence in various countries across the globe and is currently headquartered \nat Ahmedabad, India. \nIt plans to commence a new branch in the Australia owing to the untapped \nopportunitiesavailablethereintheoutsourcingbusiness.Thecompanyhired \naprofessionalforthepreparationoftheProjectreportandthefeepaidwas \nRs \n2,00,000. The company also incurred Rs 5,00,000 in the form R&D costs. As \nper the project report, the Company will require an initial fund outlay of Rs 25 \ncrores for buying property & setting up the other infrastructure. It will also \nrequire working capital amounting to Rs 5 crore. The company is planning to \noperate for a very long period of time, however for the sake of simplicity, \ncalculations shall end at the end of the 10th year. The Earnings before tax but \nafterdeductingInterestExp(EBT)estimatedwouldbeasfollows\u2013 \n \nYEAR \nEBT(AmountinRs) \n2,00,00,000 \n2,50,00,000 \n4,00,00,000 \n4,75,00,000 \n6,00,00,000 \n6,40,00,000 \n6,15,00,000 \n5,25,00,000 \n3,80,00,000 \n2,90,00,000 \n\n \n \nThe above amounts also include an allocated common cost of Rs 12,50,000. \nCompany will distribute 10% dividends every year on post-tax earnings. \nCompanyintendstoborrow funds of 3crores at apost-tax Interestrateof 6.5% in \nIndia. As per the tax treaty between India & Australia (Tax Agreement between \ntwo nations), first 3 years are tax free and from 4thyear 75% of corporate taxes \nare \nto \nbe \npaid \nin \nthe \ncountry \nwhere \nit \nis \nheadquartered \nand \nbalanceintheothernation.TotalCorporatetaxrateapplicabletothe \ncompany \nis \n30%. However, tax oncapital gains is tobe paidat 15%, only in the \nheadquarters. Salvage value for depreciation purpose is estimated at Rs. \n90,00,000. The assets would be disposed of in the market at Rs. 3,50,00,000at \nthe end. Hemsparsh Private Limited desires a premium of 3% to the current \nMCLR of 12% (Marginal Cost of Funds based Lending Rate).Assume noother \nassets in the block. \nCALCULATENPVfortheprojectandadviseonlyfromIndianlawperspective. \nIf the company wishes to recoup its investment within 3.5 years, STATE any \ntwomeasuresthatthecompanyshalltake. \n(10Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_January_2025_MTP_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "January_2025", "text": "(c) \nMENTION any one advantage of stock dividend \u2013 to the company as well \nastotheinvestor \n(2Marks) \n\n \n \nPAPER6B:STRATEGICMANAGEMENT \n1. \nThequestionpapercomprisestwoparts,PartIandPartII. \n2. \nPartIcomprisescasescenariobasedmultiplechoicequestions(MCQs) \n3. \nPartIIcomprisesquestionswhichrequiredescriptivetypeanswers. \nPART I \u2013 Case scenario based MCQs (15 Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_January_2025_MTP_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "January_2025", "text": "Question 1. (A) (Compulsory) \n \n1. \n(A)GalaxyEnterprisesLimited(GEL)operatesasadiversifiedconglomerate with a \nsignificant presence in various industries, including electronics, packaged \nfoods, textiles, heavy machinery, and renewable energy. Leveraging its \nsubstantial \nfree \nreserves \nof \n\u20b985,000 \ncrores, \nGEL \nhasbuiltastrongbrandreputation,largelydrivenbyitsmarket \nleadership \nacross multiple sectors. \nIn the renewable energy sector, GEL has been the industry leader \nforover15years.Thedivision\u2019srecentperformancehasbeenexceptional. \nA \nsignificant market development occurred when two competitors, Nova \nGreen Energy Limited and Zenith Solar Limited \u2013 previously ranked \nsecond and third in market share, respectively \u2013 merged to create a new \nentity, Synergy Renewables Ltd (SRL). Following the merger, SRL has \nclaimedthetopspotinmarketshare,intensifyingcompetition. \nAgainst this backdrop, the Chairman of GEL convened a strategicmeeting \nwith the Board of Directors, divisional heads, marketing executives, and \nthe Group CFO. The meeting focused on formulating growth strategies for \nthe renewable energy division, identifying opportunities for diversification, \nand announcing an interim dividend in honour of GEL\u2019s platinum jubilee \ncelebrations. \nMr. Arvind Malhotra, CEO of the renewable energy division, emphasized \nthe industry's slow pace of modernization compared to global standards. \nHehighlightedthepotential \ninemergingproductcategories,suchas \nnextgeneration solar panels, energy storage systems, and advancedwind \nturbines. He proposed a modernization initiative requiring an investment \nof \u20b97,000 crores. This transformation is projected to reduce operational \ncosts by 20% and minimizewastage by 12%. \nTheCFOpresentedananalysisrevealingthatcompetitorsareunlikely \ntoinvestinsignificantupgradesorexpansionsforthenext6\u20138years \ndue \nto \nfinancial constraints. In response, the Board approved the modernization \ninitiative and allocated an additional \u20b91,500 crores to strengthen the \ndivision's supply chain. \nAnotherproposaldiscussedwasGEL\u2019sentryintotheelectricvehicle \n(EV)segment.TheBoardapprovedthisdiversificationstrategy, \nallocating\u20b98,000crorestoestablishafootholdinthisrapidlygrowing \n\n \n \nmarket.Additionally,theBoardauthorizedthedistributionofaninterim \ndividendof\u20b975persharetocommemorateGEL\u2019splatinumjubilee. \nIn preparing for these strategic initiatives, the Board also evaluated key \nstakeholders to determine their influence and interest. Shareholders and \nthe Board of Directors emerged as primary stakeholders with both high \ninfluence and interest, necessitating active engagement to secure their \nsupport. Regulatory authorities were recognized as influential but less \ninterested in the immediate plans, requiring regular updates to ensure \ncompliance. Customers and employees, while not as powerful, were \nidentified as highly interested stakeholders, particularly concerning the \nrenewable energy division\u2019s modernization and the entry into the EV \nmarket. \nBasedontheaboveCaseScenario,answertheMultiple-ChoiceQuestions."}, {"source_file": "Inter_P6_FMSM_FM_SM_January_2025_MTP_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "January_2025", "text": "(i) \nGELhasapprovedsignificantinvestmentsinmodernizingitsrenewable \nenergydivisionandenteringtheelectricvehiclesegment.Analyzethelevel \nof \nstrategy these decisions represent and identify the correct justification for your \nanswer."}, {"source_file": "Inter_P6_FMSM_FM_SM_January_2025_MTP_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "January_2025", "text": "(b) \nBusiness level, as these initiatives align with the goals of a single division \nto gain a competitive edge."}, {"source_file": "Inter_P6_FMSM_FM_SM_January_2025_MTP_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "January_2025", "text": "(d) \nOperationallevel,asthesefocusonday-to-dayactivitieswithinthe divisions.\n \n(2Marks) \n(ii) \nWith the merger of Nova Green Energy Limited and Zenith Solar Limited into \nSynergy Renewables Ltd (SRL), how does this development influence GEL\u2019s \nstrategic priorities in the renewable energy sector under Porter\u2019s Five Forces \nframework?"}, {"source_file": "Inter_P6_FMSM_FM_SM_January_2025_MTP_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "January_2025", "text": "(d) \nThemergerstrengthensthebargainingpowerofsuppliersduetogreater \nrelianceonkeyinputs. \n(2Marks) \n(iii) GEL\u2019s decision to enter the EV market represents a diversification strategy. \nEvaluate which type of diversification strategy is being pursued and the \nreasoning behind this classification."}, {"source_file": "Inter_P6_FMSM_FM_SM_January_2025_MTP_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "January_2025", "text": "(b) \nVertical integration, as GEL seeks to integrate upstream or \ndownstreamactivities in the automotive value chain."}, {"source_file": "Inter_P6_FMSM_FM_SM_January_2025_MTP_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "January_2025", "text": "(d) \nConglomeratediversification,asGELentersanentirelyunrelatedand \nindependentbusinesssegment. \n(2Marks) \n(iv) GEL identified shareholders and the Board of Directors as key stakeholders. \nAnalyze the rationale for classifying them as both high influence and high \ninterestandhow thisinfluencesstrategiccommunication."}, {"source_file": "Inter_P6_FMSM_FM_SM_January_2025_MTP_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "January_2025", "text": "(v) \nBy approving modernization in renewable energy and diversification into EVs, \nwhat corporate strategy is GEL pursuing, and how does it position thecompany \nas per Ansoff\u2019s product market growth matrix?"}, {"source_file": "Inter_P6_FMSM_FM_SM_January_2025_MTP_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "January_2025", "text": "(i) \nHarish, a middle manager, is confused about the difference between flexibility \nand resilience while working around an uncertain situation in the organization. \nCanyou help find the right difference between the two?"}, {"source_file": "Inter_P6_FMSM_FM_SM_January_2025_MTP_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "January_2025", "text": "(a) \nFlexibility is about adaptingtonew things quickly, whileresilienceis \naboutholdingontothecurrentpositionofthethingsfortheshort-term \nas \nthe \norganisation is confident of its efficiencies."}, {"source_file": "Inter_P6_FMSM_FM_SM_January_2025_MTP_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "January_2025", "text": "(d) \nBotharethesame. \n(2Marks) \n\n \n \n(ii) \n Suman, the marketing head of Jalwa Music Co., was doing research on the \nonlinemusicstreamingbusinessinIndiaforhernewagemusicfor youngsters. She \nanalyzed that though the players in the market wereinnovating rapidly, it was \ndifficult to maintain a sustainable competitive advantage. Which aspect of \nstrategic management best reflects thischallenge?"}, {"source_file": "Inter_P6_FMSM_FM_SM_January_2025_MTP_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "January_2025", "text": "(d) \nThedifficultyinestimatingcompetitors'responses. \n(2Marks) \n(iii) During which stage of the Product Life Cycle would you typically expect the \nhighest marketing expenditure per unit sold as companies aggressivelypromote \ntheir product?"}, {"source_file": "Inter_P6_FMSM_FM_SM_January_2025_MTP_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "January_2025", "text": "(a)Jupiter Electronics Ltd. is known for its ability to come out with path- \nbreaking products. Though the work environment at Jupiters is relaxed \nand casual, there is a very strong commitment to deadlines. The \nemployees believe in a \u201cwork hard play hard\" ethic. The organisation has \nmoved away from formal and hierarchical set up to a more results-driven \napproach. Employees are committed to strategies and work towards \nachieving them. They guard innovations, maintain confidentiality and \nsecrecy in their work. They are closely related to values, practices, and \nnorms of organisations. What aspects of an organization are being \ndiscussed?Explain. \n(5Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_January_2025_MTP_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "January_2025", "text": "(b) \nReshuffle Corp is a company that manufactures and sells office furniture. \nThey offer a range of products, from desks and chairs to cabinets and \nshelves. Recently, the company has been facing increased competition \nfromonlineretailersofferingsimilarproductsatlowerprices. \nAnalyzingthecharacteristicsofproductsinthefurnitureindustry, discuss how \nReshuffle \nCorp \ncan \ndifferentiate \nits \nproducts \nto \nmaintain \na \ncompetitiveedgeinthemarket. \n(5Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_January_2025_MTP_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "January_2025", "text": "(c) \nAbusinessconsultancyfirmfocusesonprovidingspecializedservices \ninenvironmentalmanagementconsultancy.Itassistsclientcompanies \ninestablishingrobustenvironmentalmanagementaccountingsystems \n\n \n \nfor the measurement, recording, and analysis of environmental costs. A \nsignificant \nportion \nof \nthe \nfirm\u2019s \noperations \ninvolve \nconducting \nenvironmental audits to verify compliance with international assurance \nstandards in environmental management\u2014an exclusive service not \noffered by its competitors. While the firm also undertakes other \nmanagementconsultancyprojects,theseconstituteonlyaminorshare of its \ntotal annual revenue. Identify the strategy categories by Michael \nPorterwhichbestdescribesthestrategyofthisfirm. \n(5Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_January_2025_MTP_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "January_2025", "text": "(a)Rohit Patel has a small chemist shop in the central part of Ahmedabad. \nWhatkindofcompetenciesRohitcanbuildtogaincompetitive \nadvantageoveronlinemedicinesellers? \n(5Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_January_2025_MTP_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "January_2025", "text": "(a)Vikram Patel owns a chain of ten bookstores across the Mumbai region. \nThree of these stores were launched in the past two years. He hasalways \nbelieved in strategic management and enjoyed robust sales of books, \nmagazines, and educational materials until about five years ago. \nHowever,withtheincreasingpreferenceforonlineshopping,thesales at his \nphysical stores have declined by approximately sixty percent over the last \nfive years. Analyze Vikram Patel's current position in light of the \nlimitationsofstrategicmanagement. \n(5Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_January_2025_MTP_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "January_2025", "text": "(b) \nExplain the strategic implications of each of the following types ofbusiness \nin a corporate portfolio:"}, {"source_file": "Inter_P6_FMSM_FM_SM_January_2025_MTP_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "January_2025", "text": "(a)Stars(b)QuestionMarks(c)CashCows(d)Dogs \nOR \nStrategic alliances are formed if they provide an advantage to all the \npartiesinthealliance.Doyouagree?Explaininbrieftheadvantagesof \nastrategicalliance. \n(5Marks)"}]

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+[{"source_file": "Inter_P6_FMSM_FM_SM_January_2026_MTP_1_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "January_2026", "text": "Time Allowed \u2013 3 Hours (Total time for 6A and 6B)  \nMaximum Marks \u2013 50 \n1. \nThe question paper comprises two parts, Part I and Part II. \n2. \nPart I comprises Case Scenario based Multiple Choice Questions (MCQs) \n3. \nPart II comprises questions which require descriptive type answers. \n4. \nWorking note should form part of the answer. Wherever necessary, suitable assumptions \nmay be made by the candidates and disclosed by way of note. However, in answers to \nQuestions in Division A, working notes are not required. \nPART I \u2013 Case Scenario based MCQs (15 Marks) \nWrite the most appropriate answer to each of the following multiple choice questions by \nchoosing one of the four options given. All questions are compulsory. \nCase Scenario I \nABC Ltd is a growing renewable energy manufacturing company specializing in Parabolic Solar \nCookers, which are widely used for rural cooking programs, NGO sustainability projects, and \ngovernment-sponsored green initiatives. Over the past few years, ABC Ltd has seen a steady \nrise in demand due to increasing awareness of clean energy solutions and state-level subsidies. \nCurrently, ABC Ltd fabricates the metal frame, stand, and support structures of the solar cooker \nat their facility. However, one critical component\u2014the Concentrator Dish (the reflective parabola \nthat focuses sunlight)\u2014is being purchased from an external vendor, PQR Ltd, at a cost of  \n` 2,000 per unit. \nRecently, ABC Ltd has faced several operational challenges with the outsourced dish supplier \nlike Supply Delays, Quality Inconsistency, Rising Procurement Costs, large government order \nrequiring strict timelines and quality standards. \n \nDownloaded From www.castudynotes.com \nJoin Us on Telegram http://t.me/canotes_ipcc\nBecause of these concerns, management is considering backward integration\u2014bringing dish \nmanufacturing in-house to gain greater control over cost, quality, and delivery. \nTo produce the concentrator dishes internally, management is evaluating the cost structure: \n\u2022 \nRaw Material: ` 700 per unit \n\u2022 \nLabour Cost: ` 300 per unit \n\u2022 \nOther Variable Costs: ` 100 per unit \nTotal Variable Cost per unit = ` 1,100 \nTo manufacture the dish internally, ABC Ltd must purchase new machinery costing ` 25,00,000 \nwith: \n\u2022 \nUseful life: 5 years \n\u2022 \nDepreciation rate: 20% per year (straight-line) \n\u2022 \nTax rate: 30% \n\u2022 \nDiscount rate: 10% \n\u2022 \nExpected annual production: 1,000 units \n\u2022 \nPresent value annuity factor for 10% over 5 years: 3.7908 \nThe leadership team wants to understand whether in-house manufacturing is financially viable \ncompared to continuing purchases from PQR Ltd. Based on the above facts you are required to \nanswer the following questions (MCQs 1 to 5): \n1. \nWhat is present value of outflow incase of concentrator dish purchased from PQR Ltd for \n5 years after considering taxes? \n(A) \n50,40,325 \n(B) \n43,52,789 \n(C) \n31,25.852 \n(D) \n53,07,120 \n2. \nWhat is present value of outflow after considering taxes if ABC Ltd is planning to \nmanufacture concentrator dish? \n(A) \n45,80,296 \n(B) \n48,50,296 \n(C) \n46,85,029 \n(D) \n53,25,841 \nDownloaded From www.castudynotes.com \nJoin Us on Telegram http://t.me/canotes_ipcc\n3.  \nSuppose only 700 units are needed in a particular year. Which conclusion is correct? \n(A)  \nThe investment is still cash-positive even at 700 units \n(B) \nThe investment becomes cash-negative at 700 units \n(C) \nThe depreciation cancels out tax benefits at 700 units \n(D)  \nABC should outsource if output falls below 900 units \n4.  \nABC Ltd has found 2 new vendors selling concentrator dish. XYZ Ltd for ` 2100/- per \nunit and UVW Ltd for `1900/- per unit. Which option should ABC Ltd choose to minimize \nthe cost? \n(A)  \nManufacture the Concentrator dish inhouse \n(B)  \nPurchase from PQR Ltd \n(C)  \nPurchase from XYZ Ltd \n(D)  \nPurchase from UVW Ltd \n5.  \nUVW Ltd is negotiating with ABC Ltd and asking for final price for which they would want \nto purchase it. What should be price per unit at which ABC Ltd can purchase it from UVW \nLtd? \n(A) \n2,000 \n(B) \n1,965 \n(C) \n1,828 \n(D) \n1,900 \n(5 x 2 = 10 Marks) \n6. \nConsider the following information for Atharv Ltd.: \n \n` in lakhs \nEBIT (Earnings before Interest and Tax) \n15,750 \nEarnings before Tax (EBT): \n7,000 \nFixed Operating costs: \n1,575 \nCalculate percentage change in earnings per share, if sales increase by 5%.  \n(A) \n20% \n(B) \n19.65% \n(C) \n18.5% \n(D) \n12.375% \n(2 Marks) \nDownloaded From www.castudynotes.com \nJoin Us on Telegram http://t.me/canotes_ipcc\n7. \nCalculate number of operating cycles in a year from the information given below: \nRaw material inventory consumed during the year \n` 6,00,000 \nAverage stock of raw material \n` 41,667 \nWork-in-progress holding period \n18 days \nFinished Goods storage period \n25 days \nAverage collection period from debtors \n45 days \nAverage credit period availed \n30 days \nNo. of days in a year \n360 days \n(A) \n(B) \n5.37 \n(C) \n(D) \n4.34 \n(2 Marks) \n8. \nA company has a financial structure where equity is 60% of its total debt plus equity. Its \ncost of equity is 10% and gross loan interest is 9%. Corporation tax is paid at 30%. \nWhat is the company\u2019s weighted average cost of capital (WACC)? \n(A)  \n7.55% \n(B)  \n7.80% \n(C)  \n8.52% \n(D)  \n8.05% \n(1 Mark) \nPART II \u2013 Descriptive Questions (35 Marks) \nQuestion No. 1 is compulsory. \nAttempt any two questions out of the remaining three questions."}, {"source_file": "Inter_P6_FMSM_FM_SM_January_2026_MTP_1_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "January_2026", "text": "(a)  \nDivine Limited has the following capital structure, which it considers to be optimal: \nCapital Structure \nWeightage (in percentage) \nDebt \nPreference Shares \nEquity Shares \n100 \n \nDivine Limited\u2019s expected net income this year is `34,285.72, its established \ndividend payout ratio is 30 per cent, its tax rate is 40 per cent, and investors expect \nDownloaded From www.castudynotes.com \nJoin Us on Telegram http://t.me/canotes_ipcc\nearnings and dividends to grow at a constant rate of 9 per cent in the future.  It \npaid a dividend of ` 3.60 per share last year, and its shares currently sell at a \nprice of ` 54 per share. \n \nDivine Limited requires additional funds which it can obtain in the following ways:   \n\u2022 \nPreference Shares: New preference shares with a dividend of ` 11 can be \nsold to the public at a price of `95 per share. \n\u2022 \nDebt: Debt can be sold at an interest rate of 12 per cent. \n \nYou are required to:"}, {"source_file": "Inter_P6_FMSM_FM_SM_January_2026_MTP_1_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "January_2026", "text": "(i) \nDETERMINE the cost of each capital structure component; and \n(ii) \nCOMPUTE the weighted average cost of capital (WACC) of Divine Limited.  \n (5 Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_January_2026_MTP_1_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "January_2026", "text": "(b)  \nFollowing information is given for Prashuk Ltd.: \nFixed assets turnover ratio (Based on cost of sales) \n8 times \nCapital turnover ratio (Based on cost of sales) \n2 times \nInventory Turnover \n8 times \nReceivable turnover \n4 times \nPayable turnover \n6 times \nGP Ratio \n25% \n \nGross profit during the year amounts to ` 8,00,000. There is no long-term loan or \noverdraft. Reserve and surplus amount to ` 2,00,000. Ending inventory of the year \nis ` 20,000 above the beginning inventory. Based on the above information, \nDETERMINE the various assets and liabilities of the company. \n(5 Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_January_2026_MTP_1_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "January_2026", "text": "(c)  \nPerfact Ltd. has 8 lakhs equity shares outstanding at the beginning of the year. \nThe current market price per share is ` 120. The Board of Directors of the \ncompany is contemplating ` 6.4 per share as dividend.  The rate of capitalisation, \nappropriate to the risk-class to which the company belongs, is 9.6%:"}, {"source_file": "Inter_P6_FMSM_FM_SM_January_2026_MTP_1_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "January_2026", "text": "(i)   \nBased on M-M Approach, CALCULATE the market price of the share of the \ncompany, when the dividend is \u2013 (a) declared; and (b) not declared. \n(ii)  \nDETERMINE, how many new shares are to be issued by the company, if \nthe company desires to fund an investment budget of ` 3.20 crores by the \nend of the year assuming net income for the year will be ` 1.60 crores? \n(5 Marks) \nDownloaded From www.castudynotes.com \nJoin Us on Telegram http://t.me/canotes_ipcc"}, {"source_file": "Inter_P6_FMSM_FM_SM_January_2026_MTP_1_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "January_2026", "text": "(a) \nA newly formed company has applied to the commercial bank for the first time for \nfinancing its working capital requirements. The following information is available \nabout the projections for the current year: \n \nEstimated level of activity: 1,04,000 completed units of production plus 4,000 units \nof work-in-progress. Based on the above activity, estimated cost per unit is: \nRaw material \n` 80 per unit \nDirect wages \n` 30 per unit \nOverheads (exclusive of depreciation) \n` 60 per unit \nTotal cost \n` 170 per unit \nSelling price \n` 200 per unit \n \nRaw materials in stock: Average 4 weeks consumption, work-in-progress (assume \n50% completion stage in respect of conversion cost) (materials issued at the start \nof the processing). \nFinished goods in stock \n8,000 units \nCredit allowed by suppliers \nAverage 4 weeks \nCredit allowed to debtors/receivables \nAverage 8 weeks \nLag in payment of wages \nAverage 1 1\n weeks \n \nCash at banks (for smooth operation) is expected to be ` 25,000 \n \nAssume that production is carried on evenly throughout the year (52 weeks) and \nwages and overheads accrue similarly. All sales are on credit basis only. \n \nCALCULATE Net Working Capital. \n(8 Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_January_2026_MTP_1_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "January_2026", "text": "(a) \nVastupal Limited is currently a levered a company having 15% convertible debt of \n` 250 lakhs in its capital structure. The current market value of Vastupal Limited \nstands at ` 1500 lakhs with the overall capitalization rate for the common stock \nholders is at 20% considering financial and non-financial risks.  \n \nOwing to the regulatory norms applicable to Vastupal Limited, the company is \nplanning to become an all equity financed company gradually over a period of \ntime. Currently, company plans to convert 70% of debt to equity and the balance \nafter 3 years. It\u2019s Earnings before Interest & Taxes (EBIT) are expected to remain \nconstant in future as well. The entire earnings are distributed to the common stock \nholders and the applicable corporate tax rate is at 20%.  \nDownloaded From www.castudynotes.com \nJoin Us on Telegram http://t.me/canotes_ipcc\nYou are required to calculate the impact on the following on account of the change \nin the capital structure as per Modigliani and Miller (MM) Hypothesis:"}, {"source_file": "Inter_P6_FMSM_FM_SM_January_2026_MTP_1_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "January_2026", "text": "(i) \nThe market value of the company and its impact \n(ii) \nIt's cost of equity, and its impact \n(iii) \nIt\u2019s cost of capital and its impact \n \nAlso CALCULATE the market value of the totally unlevered company & the cost \nof equity i.e. after 3 years when the balance 30% convertible debt is also fully \nconverted to equity.  \n(6 Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_January_2026_MTP_1_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "January_2026", "text": "(b)  \nThe Capital structure of Magnus Ltd. is as follows: \n \n(`) \nEquity Share of ` 10 each \n8,00,000 \n10% Preference Share of ` 100 each \n5,00,000 \n12% Debentures of ` 100 each \n7,00,000 \n \n20,00,000 \n \nAdditional Information: \n- \nProfit after tax (Tax Rate 30%) are ` 2,80,000 \n- \nOperating Expenses (including Depreciation ` 96,800) are 1.5 times of EBIT \n- \nEquity Dividend paid is 15% \n- \nMarket price of Equity Share is ` 23 \n \nCALCULATE:"}, {"source_file": "Inter_P6_FMSM_FM_SM_January_2026_MTP_1_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "January_2026", "text": "(c)  \nDISCUSS financial break-even and EBIT-EPS indifference analysis.  (2 Marks) \nDownloaded From www.castudynotes.com \nJoin Us on Telegram http://t.me/canotes_ipcc"}, {"source_file": "Inter_P6_FMSM_FM_SM_January_2026_MTP_1_Questions.pdf", "subject": "SM", "doc_type": "MTP", "attempt_period": "January_2026", "text": "1. \nThe question paper comprises two parts, Part I and Part II. \n2. \nPart I comprises case scenario based multiple choice questions (MCQs) \n3. \nPart II comprises questions which require descriptive type answers. \nPART I \u2013 Case scenario based MCQs (15 Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_January_2026_MTP_1_Questions.pdf", "subject": "SM", "doc_type": "MTP", "attempt_period": "January_2026", "text": "Question 1. (A) (Compulsory) \n(A)  \nZenith Global Enterprises (ZGE), a diversified conglomerate based in Dubai, operates \nacross five distinct industries: renewable energy, luxury real estate, fashion retail, \nhealthcare and digital services. With a revenue of $12 billion in 2024, ZGE is recognized \nfor its ability to adapt and thrive in competitive global markets. However, the \nconglomerate \u2019s leadership is now focusing on streamlining operations and leveraging \ndigital channels to sustain growth. \n \nTo address operational complexity, ZGE \u2019s management highlights the advantages of its \nStrategic Business Unit (SBU) structure. Each business unit operates autonomously with \ndedicated leadership teams, enabling tailored strategies for market-specific needs. For \nexample, the renewable energy SBU recently secured a $500 million contract with a \nEuropean government for solar power solutions, while the fashion retail SBU launched a \nluxury e-commerce platform that grew sales by 45% year-on-year. \n \nZGE \u2019s overarching strategy emphasizes the best-cost provider approach. By balancing \npremium quality with competitive pricing, the healthcare SBU, for instance, has \nintroduced telemedicine services that cost 30% less than competitors without \ncompromising service quality. This approach resonates strongly with middle-income \nconsumers across Asia and Africa. \n \nDigital marketing has become a cornerstone of ZGE \u2019s customer engagement strategy. \nIn 2024, the company allocated $200 million to develop AI-driven marketing campaigns, \nleveraging predictive analytics to personalize ads. This resulted in a 20% higher \ncustomer acquisition rate across all SBUs. The luxury real estate division also adopted \nvirtual reality (VR) tours, allowing global customers to explore properties remotely, driving \na 35% increase in international sales. \n \nA key challenge for ZGE lies in balancing the needs of customers (the direct purchasers) \nand consumers (the end users). In the digital services SBU, this tension is evident in \npricing decisions for their cloud computing solutions. While enterprise customers demand \ncost-efficient packages, end users prioritize seamless, high-speed performance. ZGE \u2019s \nleadership employs customer insights and feedback loops to align pricing with both \ngroups \u2019expectations. \nDownloaded From www.castudynotes.com \nJoin Us on Telegram http://t.me/canotes_ipcc\nFinally, ZGE \u2019s channel of distribution heavily relies on e-commerce platforms. The \nfashion retail SBU \u2019s recent collaboration with a major e-commerce marketplace \nincreased distribution efficiency by 40%. Meanwhile, the healthcare SBU \u2019s direct-toconsumer online pharmacy has achieved $100 million in annual revenue by offering \nhome delivery of essential medicines. \n \nWith these strategies, ZGE aims to achieve 10% annual growth while maintaining its \ncommitment to innovation and quality. However, as the conglomerate scales, it must \naddress potential challenges such as inter-SBU competition and digital transformation \nrisks. \n \nBased on the above Case Scenario, answer the Multiple-Choice Questions."}, {"source_file": "Inter_P6_FMSM_FM_SM_January_2026_MTP_1_Questions.pdf", "subject": "SM", "doc_type": "MTP", "attempt_period": "January_2026", "text": "(i)  \nThe decision of the renewable energy SBU to secure a $500 million European \nsolar contract is an example of:"}, {"source_file": "Inter_P6_FMSM_FM_SM_January_2026_MTP_1_Questions.pdf", "subject": "SM", "doc_type": "MTP", "attempt_period": "January_2026", "text": "(d)  \nDelayed adaptation to global competition \n(2 Marks) \n(ii)  \nHow does ZGE \u2019s best-cost provider strategy benefit its healthcare SBU?"}, {"source_file": "Inter_P6_FMSM_FM_SM_January_2026_MTP_1_Questions.pdf", "subject": "SM", "doc_type": "MTP", "attempt_period": "January_2026", "text": "(d)  \nBy focusing solely on cost-cutting measures \n(2 Marks) \n(iii)  \nWhat role does digital marketing play in ZGE \u2019s growth strategy?"}, {"source_file": "Inter_P6_FMSM_FM_SM_January_2026_MTP_1_Questions.pdf", "subject": "SM", "doc_type": "MTP", "attempt_period": "January_2026", "text": "(d)  \nIt focuses solely on promoting the renewable energy SBU.  \n(2 Marks) \n(iv)  \nHow has the reliance on e-commerce benefited ZGE \u2019s distribution strategy?"}, {"source_file": "Inter_P6_FMSM_FM_SM_January_2026_MTP_1_Questions.pdf", "subject": "SM", "doc_type": "MTP", "attempt_period": "January_2026", "text": "(c)  \nBy reducing the importance of product quality \nDownloaded From www.castudynotes.com \nJoin Us on Telegram http://t.me/canotes_ipcc"}, {"source_file": "Inter_P6_FMSM_FM_SM_January_2026_MTP_1_Questions.pdf", "subject": "SM", "doc_type": "MTP", "attempt_period": "January_2026", "text": "(i)  \nA manufacturing company's success is rooted in its proven ability to consistently \nadhere to ISO quality standards, deliver products with zero defects, and effectively \nmanage its global supply chain. This inherent capability is a result of years of \nrigorous, standardized production schedules, quality audits, and logistical \nprocesses. Which \"S\" in the McKinsey 7S Framework best reflects these \nestablished, recurring daily activities and formal procedures?"}, {"source_file": "Inter_P6_FMSM_FM_SM_January_2026_MTP_1_Questions.pdf", "subject": "SM", "doc_type": "MTP", "attempt_period": "January_2026", "text": "(d)  \nSkills  \n(2 Marks) \n(ii) \nIn the Indian smartphone market, Chinese brands completely captured the budget \nsegment. Which of Porter's Five Forces is intensified by the presence of numerous \nplayers offering functionally similar, low-priced products?"}, {"source_file": "Inter_P6_FMSM_FM_SM_January_2026_MTP_1_Questions.pdf", "subject": "SM", "doc_type": "MTP", "attempt_period": "January_2026", "text": "(d)  \nBargaining Power of Buyers \n(2 Marks) \n(iii)  \nWhich characteristic highlights the inspirational aspect of a Mission Statement?"}, {"source_file": "Inter_P6_FMSM_FM_SM_January_2026_MTP_1_Questions.pdf", "subject": "SM", "doc_type": "MTP", "attempt_period": "January_2026", "text": "(d)  \nIt focuses on annual profit targets which are motivation for employees  \n \n(1 Mark) \nDownloaded From www.castudynotes.com \nJoin Us on Telegram http://t.me/canotes_ipcc\nPART II \u2013 Descriptive Questions (35 Marks) \nQuestion No. 1 is compulsory. \nAttempt any two questions out of the remaining three questions."}, {"source_file": "Inter_P6_FMSM_FM_SM_January_2026_MTP_1_Questions.pdf", "subject": "SM", "doc_type": "MTP", "attempt_period": "January_2026", "text": "(a)  \nThe Board of Directors of Gromax Industries Ltd., a diversified conglomerate with\nsix business units\u2014Agritech, Pharmaceuticals, Construction Materials, Consumer \nElectronics, Renewable Energy and Logistics\u2014recently held a strategic review \nmeeting. The board discussed allocating the highest capital budget for the next \nfive years to the most promising business unit to enhance long-term shareholder \nvalue. They also considered divesting the loss-making Logistics division and \nreviewed a unified dividend policy for the entire group. These decisions will \nsignificantly shape the firm\u2019s long-term direction and resource distribution. Which \nlevel of strategy is being addressed? Explain with reasons. \n(5 Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_January_2026_MTP_1_Questions.pdf", "subject": "SM", "doc_type": "MTP", "attempt_period": "January_2026", "text": "(b)\nABC Corp, a multinational consumer electronics company, is planning to expand\nits operations into a new country. The company's senior management is\nevaluating the potential risks and opportunities of entering this new market. As\npart of their analysis, they decide to use the PESTLE framework to assess the\nexternal factors that could impact their decision. How can the PESTLE framework\nhelp ABC Corp assess the external factors affecting its decision to expand into a\nnew country?  \n(5 Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_January_2026_MTP_1_Questions.pdf", "subject": "SM", "doc_type": "MTP", "attempt_period": "January_2026", "text": "(c)\nOrganic Beverages has been manufacturing various soft drinks for over a decade.\nIt has developed a sugar free beverage to cater to the needs of specific customers\nby spending heavily on research and development for this product. In addition, a\nlot of money was spent on marketing (branded as 'Say no to Sugar') and on\nobtaining licence for it. In a span of five months, company has gained a major\nshare of the market for this new product, and it is growing rapidly. Profitability of\nthis product is also better. In order to take advantage of best opportunity for\nexpansion, it has to make heavy investment to maintain its position in current and\nnew market.\nClassify 'Say no to Sugar' product in the most related category in the\ntwo-dimensional growth share matrix as per Boston Consulting Group. Explain the\nstrategies which can be pursued post identification and classification of products\nin such matrix. Also state the limitations of this technique as one of the strategic\noptions. \n(5 Marks)\nDownloaded From www.castudynotes.com \nJoin Us on Telegram http://t.me/canotes_ipcc"}, {"source_file": "Inter_P6_FMSM_FM_SM_January_2026_MTP_1_Questions.pdf", "subject": "SM", "doc_type": "MTP", "attempt_period": "January_2026", "text": "(a)  \nConnect Group was one of the leading makers of mobile handsets till a few years \nago and which went at the bottom of the heap. Connect Group didn't adapt to the \ncurrent market trends, which eventually led to its downfall. What would have \nhelped Connect Group to change, adapt and survive? Explain the steps to initiate \nthe change. \n(5 Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_January_2026_MTP_1_Questions.pdf", "subject": "SM", "doc_type": "MTP", "attempt_period": "January_2026", "text": "(a)  \n\"A manager as a strategic leader has to play many leadership roles\", while \nexplaining the statement in brief, delineate the leadership roles which a manager \nhas to play in pushing for a good strategy execution. \n (5 Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_January_2026_MTP_1_Questions.pdf", "subject": "SM", "doc_type": "MTP", "attempt_period": "January_2026", "text": "(a)  \nWhat do you mean by value chain analysis? Delineate the support activities in \nvalue chain analysis, as stated by Michael Porter. \n (5 Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_January_2026_MTP_1_Questions.pdf", "subject": "SM", "doc_type": "MTP", "attempt_period": "January_2026", "text": "(b)  \n\"Managing stakeholders is critical to the success of a project\". Explain how \nMendelow's Matrix helps in managing stakeholders and categorizing the \nstakeholders into groups. \nOR \n \nMajor core competencies are identified in three areas - competitor differentiation, \ncustomer value and application to other markets. Discuss. \n(5 Marks) \nDownloaded From www.castudynotes.com \nJoin Us on Telegram http://t.me/canotes_ipcc"}]

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+[{"source_file": "Inter_P6_FMSM_FM_SM_January_2026_MTP_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "January_2026", "text": "Time Allowed \u2013 3 Hours (Total time for 6A and 6B)  \nMaximum Marks \u2013 50 \n1. \nThe question paper comprises two parts, Part I and Part II. \n2. \nPart I comprises Case Scenario based Multiple Choice Questions (MCQs) \n3. \nPart II comprises questions which require descriptive type answers. \n4. \nWorking note should form part of the answer. Wherever necessary, suitable assumptions \nmay be made by the candidates and disclosed by way of note. However, in answers to \nQuestions in Division A, working notes are not required. \nPART I \u2013 Case Scenario based MCQs (15 Marks) \nWrite the most appropriate answer to each of the following multiple choice questions by \nchoosing one of the four options given. All questions are compulsory. \nCase Scenario - I \nVirat Ltd., a steadily growing company in Mumbai, has been performing well in its current line \nof business. The management believes the timing is right to expand, and they have approached \nyou\u2014the company\u2019s financial analyst\u2014to evaluate whether their planned new venture is \nfinancially sound. \nAt present, the company earns ` 20,00,000 in annual revenue. To generate this income, Virat \nLtd. incurs several operating costs. About 40% of the revenue, or ` 8,00,000, goes toward the \ncost of goods sold. Additionally, the company spends ` 2,00,000 on employee salaries, ` 50,000 \non electricity and other overheads, and another ` 50,000 on advertising and promotional \nactivities. After all these expenses, the company pays 35% tax on its profits. \nTo run the existing business, Virat Ltd. uses a total capital of ` 1.5 crore. This capital is funded \npartly through equity of ` 80,00,000, represented by 8,00,000 shares with a face value of ` 10 \neach, and partly through debt of ` 70,00,000, on which the company pays 9.95% interest per year. \nSince the company is listed on the NSE, its performance is compared with the market index, \nwhich has produced a return of 14.95%. The company carries a beta of 1.10, indicating slightly \nhigher risk than the market. For risk-free benchmarks, the latest RBI T-Bill rate is 5.45%. \nDownloaded From www.castudynotes.com \nJoin Us on Telegram http://t.me/canotes_ipcc\nVirat Ltd. is evaluating expansion into a new product line. Management has already conducted \npreliminary research and provided expected revenue and cost estimates for the next five years. \nExpected Performance of the New Project \nYear \n2027 \n2029 \nRevenue \n9,50,000 \n10,45,000 \n11,49,500 \n12,64,450 \n13,90,895 \nCOGS % \n40% \n42% \n45% \n47% \n50% \nCOGS (`) \n3,80,000 \n4,38,900 \n5,17,275 \n5,94,291.5 \n6,95,447.5 \nGross Profit \n5,70,000 \n6,06,100 \n6,32,225 \n6,70,158.5 \n6,95,447.5 \nEmployee Costs \n45,000 \n47,250 \n49,612.5 \n52,093.13 \n54,697.78 \nElectricity/Other \n5,000 \n5,100 \n5,202 \n5,306.04 \n5,412.16 \nAdvertising \n15,000 \n15,150 \n15,301.5 \n15,454.52 \n15,609.06 \nTo begin this project, Virat Ltd. will need to invest ` 15,00,000 in fixed assets, with a useful life \nof 10 years and terminal (sale) value at the end of 5th as ` 7,50,000. This investment will be \nfinanced through a mix of ` 5,00,000 in equity (50,000 new shares at ` 10 each) and ` 10,00,000 \nin debt. For this company issued 10,000, 10% debentures of ` 100 each at a premium of 10% \non 1.4.2026 to be matured after 5 years The debentures will be redeemed at par on maturity.  \nYou are now required to analyse both the company\u2019s current performance and the financial \nfeasibility of the new project using the information provided and answer the following questions \n(MCQ 1 to 5): \n1. \nCalculate the profit or loss for the current year"}, {"source_file": "Inter_P6_FMSM_FM_SM_January_2026_MTP_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "January_2026", "text": "(d) \n14.95% \n \n \nDownloaded From www.castudynotes.com \nJoin Us on Telegram http://t.me/canotes_ipcc\n3. \nWhat us the Weighted Average Cost of Capital (WACC) to be considered for valuing the \nfirm in current year."}, {"source_file": "Inter_P6_FMSM_FM_SM_January_2026_MTP_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "January_2026", "text": "(d) \n6.97% \n5. \nWhat is NPV of the New Project using the discount rate of 12%?"}, {"source_file": "Inter_P6_FMSM_FM_SM_January_2026_MTP_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "January_2026", "text": "(d) \n` 3,118 \n(5 x 2 = 10 Marks) \n6. \nA company is considering two financing plans: \n\u2022 \nPlan A (Equity only): 40,000 equity shares \n\u2022 \nPlan B (Debt + Equity): Debt of ` 12,00,000 at 10% interest and 25,000 equity \nshares \nTax rate = 30%. \nThe EBIT indifference point between Plan A and Plan B is:"}, {"source_file": "Inter_P6_FMSM_FM_SM_January_2026_MTP_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "January_2026", "text": "(d)  \n` 3,20,000 \n(2 Marks) \n \nDownloaded From www.castudynotes.com \nJoin Us on Telegram http://t.me/canotes_ipcc\n7.  \nA company operates at a production level of 5,000 units. The contribution is ` 60 per \nunit, operating leverage is 6, combined leverage is 24. If tax rate is 30%, what would be \nits earnings after tax?"}, {"source_file": "Inter_P6_FMSM_FM_SM_January_2026_MTP_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "January_2026", "text": "(d) \n` 10,000 \n(2 Marks) \n8.  \nABC Ltd. has earnings of ` 50,00,000 and 10,00,000 equity shares. The company is \nconsidering two dividend policies: \n\u2022 \nPolicy A: Pay 100% dividend \n\u2022 \nPolicy B: Retain all earnings \n \nAccording to MM Proposition I (no taxes), the market value of the firm under both policies \nwill be:"}, {"source_file": "Inter_P6_FMSM_FM_SM_January_2026_MTP_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "January_2026", "text": "(d)  \n` 90,00,000 for Policy A; ` 1,10,00,000 for Policy B \n(1 Mark) \nPART II \u2013 Descriptive Questions (35 Marks) \nQuestion No. 1 is compulsory. \nAttempt any two questions out of the remaining three questions."}, {"source_file": "Inter_P6_FMSM_FM_SM_January_2026_MTP_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "January_2026", "text": "(a)  \nFollowing information relate to a concern: \nDebtors Velocity \n3 months \nCredits Velocity \n2 months \nStock Turnover Ratio \n1.5 \nGross Profit Ratio \n25% \nBills Receivables \n` 25,000 \nBills Payables \n` 10,000 \nGross Profit  \n` 4,00,000 \nFixed Assets to turnover Ratio \nClosing stock of the period is ` 10,000 above the opening stock.  \nDownloaded From www.castudynotes.com \nJoin Us on Telegram http://t.me/canotes_ipcc\nCALCULATE"}, {"source_file": "Inter_P6_FMSM_FM_SM_January_2026_MTP_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "January_2026", "text": "(i) \nSales and cost of goods sold \n(ii) \nSundry Debtors \n(iii) \nSundry Creditors \n(iv) \nClosing Stock"}, {"source_file": "Inter_P6_FMSM_FM_SM_January_2026_MTP_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "January_2026", "text": "(b)  \nDeepa Limited has Earnings Before Interest and Taxes (EBIT) amounting to  \n` 60,00,000. The company is considering the introduction of debt into its capital \nstructure and is evaluating different levels of debt financing. The details of the \nalternative debt options, along with the corresponding cost of debt and cost of \nequity, are given below: \nOption \nDebt in Capital \nStructure \nCost of Debt \n(Kd) \nCost of Equity \n(Ke) \n` 60,00,000 \n10% \n12% \n` 75,00,000 \n13% \n15% \n` 90,00,000 \n14% \n16% \n` 1,05,00,000 \n14% \n16% \n \nAssuming that the company operates in zero tax regime. \n \nWHICH option of debt financing in the capital structure would you recommend as \nper Traditional Approach of the capital structure theory? \n(5 Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_January_2026_MTP_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "January_2026", "text": "(c)  \nOrion Aerospace Ltd. manufactures highly customized components for satellites \nlaunched by the France and Germany. The company operates through eight \nlocations worldwide, including its central headquarters. To streamline the \nbudgeting process and reduce escalating travel costs, the Finance Director, Ms. \nAnanya Rao, is considering the introduction of video conferencing as an \nalternative to physical meetings. \n \nIn previous years, the company sent two executives from each location to the \ncentral headquarters twice a year for budget discussions. The average travel cost \nper executive (including airfare, accommodation, and meals) is ` 27,000 per trip. \n \nUnder the proposed plan, Orion Aerospace Ltd. would install a video conferencing \nsystem at each location at a cost of ` 8,25,000 per location. In addition, the system \nwould incur an average telephone transmission cost of ` 300 per hour, and it is \nestimated that 48 hours of transmission time per year would be required to \nDownloaded From www.castudynotes.com \nJoin Us on Telegram http://t.me/canotes_ipcc\ncomplete the budgeting process. The company depreciates such equipment using \nthe straight-line method over a useful life of five years, with no residual value. \n \nAs an alternative, the company may opt to use locally rented video conferencing \nfacilities, which are available at a cost of ` 1,500 per hour, plus ` 400 per hour \ntowards average telephone charges. \n \nAdditional Information: \n \nThe company follows a policy of minimum annual cash savings of 10% of the \nexisting travel cost before approving any new cost-saving technology. \n \nYou are a Senior Officer in the Finance Department. Based on the above \ninformation, you are required to EVALUATE the proposal and advise Ms. Ananya \nRao on whether Orion Aerospace Ltd. should implement video conferencing, and \nif so, WHICH alternative would be financially preferable. \n(5 Marks) \n2.  \nSundaram Industries Ltd., a medium-sized manufacturing company based in Tamil Nadu, \nis engaged in producing a consumer product that involves significant working capital \nrequirements. The company\u2019s finished goods are sold across state borders, and therefore \nall sales and purchases are subject to Integrated GST (IGST) at 18%. \n \nThe company spends a total of ` 90 lakhs annually in cash, incurred at a constant rate. \nIts selling price structure consists of the following elements: \n\u2022 \nRaw Material \u2013 60% \n\u2022 \nWages \u2013 20% \n\u2022 \nDirect Overheads \u2013 10% \n\u2022 \nGross Profit \u2013 10% \n \nThus, 90% of the selling price represents the cost of production. \n \nDuring the current month, the company has processed 75% of its purchases into finished \ngoods and sold them entirely. Wages and Overheads are paid 80% in the current month \nand 20% in the next month. The Cash-to-Cash Conversion Cycle (CCC) is 30 days shorter \nthan the Gross Operating Cycle. The company\u2019s Cash Turnover is 9 times per year. At the \nend of the current month, the company has paid ` 45,000 towards IGST liability. \n \nThe company holds long-term investments which generate a monthly return of 1.5% net \nof 10% TDS. If needed, the company can borrow / invest funds at an interest rate equal \nto this pre-tax return. There is no WIP. \nDownloaded From www.castudynotes.com \nJoin Us on Telegram http://t.me/canotes_ipcc\nThe company\u2019s supplier has offered a 2% cash discount if invoices are settled within 15 \ndays, compared to the regular day credit period. Management must evaluate whether to \naccept this discount."}, {"source_file": "Inter_P6_FMSM_FM_SM_January_2026_MTP_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "January_2026", "text": "(i)  \nPREPARE a Working Capital Statement as at the end of the month, clearly \nshowing Current Assets and Current Liabilities, and compute the net Working \nCapital requirement. \n(ii)  \nSuppose company has offered credit terms from its major supplier of 2/15, net 60. \nCALCULATE the implied annual cost of foregoing the discount and advise whether \nthe company should accept the offer given its current cost of capital. \n(iii)  \nAssuming invoice value is ` 10,000, COMPARE the net cost to the company if it \naccepts the discount versus if it refuses the discount and invests the funds \nbetween day 15 and day 60. \n (10 Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_January_2026_MTP_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "January_2026", "text": "(a)  \nShirtCo is a garment manufacturing company producing and selling 10,000 shirts \nevery year. \nThe company\u2019s cost and revenue structure is as follows: \nParticulars \nAmount (` / per unit) \nSelling Price \nVariable Cost \nFixed Cost (Total) \n25,00,000 \n \nThe company\u2019s Chief Accountant has calculated the Degree of Operating \nLeverage (DOL) as 6 times and the Degree of Combined Leverage (DCL) as 12 \ntimes, based on the current level of production and sales. \n \nHe claims that \u201cIf sales increase by 10%, the EBIT will increase by 60%.\u201d \n \nAs a financial analyst, you are asked to verify whether his contention is correct \nunder the following independent situations: \n1. \nCase 1: Production and sales quantity increase by 10%, while selling price \nand costs remain unchanged. \n2. \nCase 2: The selling price per shirt increases by 10%, while the sales \nquantity and cost remains unchanged. \n3. \nCase 3: The selling price per shirt increases by 10%, but the price elasticity \nof demand is 1.2, leading to a change in sales quantity accordingly. \nRequired:"}, {"source_file": "Inter_P6_FMSM_FM_SM_January_2026_MTP_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "January_2026", "text": "(i)  \nCALCULATE the new EBIT under each case. \nDownloaded From www.castudynotes.com \nJoin Us on Telegram http://t.me/canotes_ipcc\n(ii)  \nDETERMINE the percentage change in EBIT compared to the original level \nunder each case. \n(iii)  \nCOMMENT on the accuracy of the Chief Accountant\u2019s claim in each \nsituation. If not correct, give reasons.  \n(iv)  \nAssuming the company is tax exempt and the company has 10% \nDebentures amounting to INR 25 Lakhs and 10% Preference Shares \namounting to INR 10 Lakhs, Comment whether the financial leverage \ncomputed by the Chief Accountant is correct. If not, COMPUTE the correct \nDFL and DCL. [Consider the base case for this part. Ignore the changes in \nquantity and price.] \n(7 Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_January_2026_MTP_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "January_2026", "text": "(b)  \nIn October, 2025 AB Co.'s share was sold for ` 146 per share. A long term \nearnings growth rate of 7.5% is anticipated. AB Co. is expected to pay dividend \nof ` 3.36 per share."}, {"source_file": "Inter_P6_FMSM_FM_SM_January_2026_MTP_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "January_2026", "text": "(i)  \nDETERMINE rate of return an investor can expect to earn assuming that \ndividends are expected to grow along with earnings at 7.5% per year in \nperpetuity?  \n(ii)  \nIt is expected that AB Co. will earn about 10% on book Equity and shall \nretain 60% of earnings. In this case, whether, there would be any change \nin growth rate and cost of Equity? ANALYSE. \n(3 Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_January_2026_MTP_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "January_2026", "text": "(a)  \nOceanic Retail Pvt. Ltd., a fast-growing chain of supermarkets, is planning to \nexpand its presence across multiple cities. The company\u2019s CFO, Mr. Arvind \nMehta, is evaluating different lease contracts for acquiring stores and equipment. \nThe legal team has informed him that besides the common Finance Lease and \nOperating Lease, there are several other types of lease arrangements. EXPLAIN \nfour other types of lease arrangements. \n(4 Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_January_2026_MTP_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "January_2026", "text": "(b)  \nTechWave Ltd. plans to buy new machinery worth ` 50 lakh to increase \nproduction. The Finance Manager says that before investing, the company must \nunderstand the cost of capital. In this regard you are required to EXPLAIN the \nmeaning of cost of capital. Also, briefly STATE three reasons why cost of capital \nis significant for decision-making at TechWave Ltd. \n(4 Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_January_2026_MTP_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "January_2026", "text": "(c)  \nEXPLAIN any common form of dividend. \n(2 Marks) \n \nDownloaded From www.castudynotes.com \nJoin Us on Telegram http://t.me/canotes_ipcc"}, {"source_file": "Inter_P6_FMSM_FM_SM_January_2026_MTP_2_Questions.pdf", "subject": "SM", "doc_type": "MTP", "attempt_period": "January_2026", "text": "1. \nThe question paper comprises two parts, Part I and Part II. \n2. \nPart I comprises case scenario based multiple choice questions (MCQs) \n3. \nPart II comprises questions which require descriptive type answers. \nPART I \u2013 Case scenario based MCQs (15 Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_January_2026_MTP_2_Questions.pdf", "subject": "SM", "doc_type": "MTP", "attempt_period": "January_2026", "text": "Question 1. (A) (Compulsory) \n(A)  \nTitan Tech, a mid-sized software development company based in India, has been \nexperiencing rapid growth over the past five years. The company specializes in \ncustomized software solutions for small and medium enterprises (SMEs). However, the \ncompetitive landscape is shifting due to the entry of global tech giants and evolving \ncustomer needs. \n \nTo chart its future strategy, Titan Tech conducted a PESTLE analysis. Politically, \ngovernment incentives for digital transformation present growth opportunities, but \nregulatory compliance is tightening. Economically, rising disposable incomes of SMEs \npromise market expansion, yet inflation is driving up operational costs. Technological \nadvancements like AI and blockchain are reshaping industry standards, and \nenvironmentally, there is pressure to adopt sustainable practices. Socially, SMEs are \nincreasingly valuing personalized customer support. Lastly, legal changes in data privacy \nregulations pose significant compliance challenges. \n \nTitan Tech also mapped its stakeholders using Mendelow \u2019s Matrix. Customers and key \ninvestors, identified as high-power, high-interest stakeholders, require constant \nengagement. Employees, although influential, have medium interest, while regulatory \nbodies, with high power but low interest, need to be monitored closely. \n \nFor strategic growth, the leadership team evaluated their product portfolio using the BCG \nMatrix. Their flagship product, BizEase (a CRM tool), is a \"Star,\" showing high market \ngrowth and market share. The legacy ERP product is a \"Cash Cow,\" while new offerings \nin AI-driven analytics are \"Question Marks.\" A failed project management tool was \nclassified as a \"Dog\" and discontinued. \n \nThe CEO, Priya Mehra, believes the company \u2019s leadership style needs to evolve to meet \ninternal and external challenges. While her approach has traditionally been transactional, \nfocusing on clear roles and rewards, she recognizes the need to adopt a more \ntransformational style to inspire innovation and motivate employees amid uncertainty. \n \nTo stay competitive, Titan Tech has adopted Michael Porter \u2019s differentiation strategy. By \nfocusing on delivering highly customizable solutions and superior customer service, they \nDownloaded From www.castudynotes.com \nJoin Us on Telegram http://t.me/canotes_ipcc\naim to stand out in the crowded market. Additionally, a value chain analysis revealed that \ninvesting in advanced R&D and strengthening customer support are critical to \nmaintaining their competitive advantage. \n \nAs Titan Tech faces these crossroads, the company \u2019s leadership must make strategic \ndecisions to sustain growth and profitability. \n \nBased on the above Case Scenario, answer the Multiple-Choice Questions."}, {"source_file": "Inter_P6_FMSM_FM_SM_January_2026_MTP_2_Questions.pdf", "subject": "SM", "doc_type": "MTP", "attempt_period": "January_2026", "text": "(i)  \nWhich external factor from the PESTLE analysis is most likely to require Titan \nTech to adapt its data management practices?"}, {"source_file": "Inter_P6_FMSM_FM_SM_January_2026_MTP_2_Questions.pdf", "subject": "SM", "doc_type": "MTP", "attempt_period": "January_2026", "text": "(d)  \nAdvancements in AI and blockchain \n(2 Marks) \n(ii)  \nAccording to Mendelow \u2019s Matrix, which group of stakeholders requires the highest \nlevel of engagement from Titan Tech?"}, {"source_file": "Inter_P6_FMSM_FM_SM_January_2026_MTP_2_Questions.pdf", "subject": "SM", "doc_type": "MTP", "attempt_period": "January_2026", "text": "(c) \nCustomers and key investors \n(d \nSuppliers \n(2 Marks) \n(iii)  \nWhich product in Titan Tech \u2019s portfolio is most likely funding the company \u2019s \ninvestment in AI-driven analytics?"}, {"source_file": "Inter_P6_FMSM_FM_SM_January_2026_MTP_2_Questions.pdf", "subject": "SM", "doc_type": "MTP", "attempt_period": "January_2026", "text": "(d) \nAI-driven analytics offerings \n(2 Marks) \n(iv)  \nWhat leadership change is Priya Mehra considering inspiring innovation within \nTitan Tech?"}, {"source_file": "Inter_P6_FMSM_FM_SM_January_2026_MTP_2_Questions.pdf", "subject": "SM", "doc_type": "MTP", "attempt_period": "January_2026", "text": "(d) \nIncreasing reliance on transactional leadership \n(2 Marks) \nDownloaded From www.castudynotes.com \nJoin Us on Telegram http://t.me/canotes_ipcc"}, {"source_file": "Inter_P6_FMSM_FM_SM_January_2026_MTP_2_Questions.pdf", "subject": "SM", "doc_type": "MTP", "attempt_period": "January_2026", "text": "(v)  \nHow does Titan Tech \u2019s use of Michael Porter \u2019s differentiation strategy help it stay \ncompetitive?"}, {"source_file": "Inter_P6_FMSM_FM_SM_January_2026_MTP_2_Questions.pdf", "subject": "SM", "doc_type": "MTP", "attempt_period": "January_2026", "text": "(i)  \nGreen Earth, an environmental organization, has formulated a statement: \"To \npromote environmental sustainability by advocating renewable energy and \nconservation practices.\" Which area of strategic intent is represented in the \nstatement?"}, {"source_file": "Inter_P6_FMSM_FM_SM_January_2026_MTP_2_Questions.pdf", "subject": "SM", "doc_type": "MTP", "attempt_period": "January_2026", "text": "(d)  \nMission Statement \n(2 Marks) \n(ii) \nImagine you are tasked with analyzing the competitive landscape for a new \nproduct launch. In this context, which of the following factors is not relevant to \nunderstanding the competitive landscape?"}, {"source_file": "Inter_P6_FMSM_FM_SM_January_2026_MTP_2_Questions.pdf", "subject": "SM", "doc_type": "MTP", "attempt_period": "January_2026", "text": "(d) \nDetermining the weakness of the competitors \n (2 Marks) \n(iii)  \nAn airline operator is providing special lounge at major airports for its frequent \nflyers.  This marketing technique is known as: -"}, {"source_file": "Inter_P6_FMSM_FM_SM_January_2026_MTP_2_Questions.pdf", "subject": "SM", "doc_type": "MTP", "attempt_period": "January_2026", "text": "(d)  \nSynchro Marketing \n(1 Mark) \n \n \nDownloaded From www.castudynotes.com \nJoin Us on Telegram http://t.me/canotes_ipcc\nPART II \u2013 Descriptive Questions (35 Marks) \nQuestion No. 1 is compulsory. \nAttempt any two questions out of the remaining three questions."}, {"source_file": "Inter_P6_FMSM_FM_SM_January_2026_MTP_2_Questions.pdf", "subject": "SM", "doc_type": "MTP", "attempt_period": "January_2026", "text": "(a)  \nA luxury skincare brand saw a sudden spike in sales after celebrity endorsements \nand social media promotions. What factors could be influencing this change in \nconsumer buying behavior, and why is understanding such behavior critical to \nbusiness success?         \n(5 Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_January_2026_MTP_2_Questions.pdf", "subject": "SM", "doc_type": "MTP", "attempt_period": "January_2026", "text": "(b)  \nA consumer technology startup continually revises its business model to align with \nshifting user behaviour, the rise of new digital platforms and rapid technological \nadvancements. In the context of internal strategic analysis, identify the key \ninternal elements or strategic drivers that the firm is responding to that shape its \nstrategic direction? \n (5 Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_January_2026_MTP_2_Questions.pdf", "subject": "SM", "doc_type": "MTP", "attempt_period": "January_2026", "text": "(c)  \nSunSip Beverages has introduced a cost-saving strategy across its manufacturing \nand warehousing operations. The Managing Director seeks continuous monitoring \nto ensure the strategy is being implemented accurately, with any deviations \ncorrected promptly. He also wants the approach to remain flexible so the company \ncan quickly adjust to market changes or unforeseen developments. What types of \nstrategic controls can the organisation adopt to ensure timely corrections and \neffective adaptation to changing conditions? \n         (5 Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_January_2026_MTP_2_Questions.pdf", "subject": "SM", "doc_type": "MTP", "attempt_period": "January_2026", "text": "(a)  \nSky chemical industry intends to grow its business. Advise the company on the \navailable options using Ansoff\u2019s product market growth matrix.           (5 Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_January_2026_MTP_2_Questions.pdf", "subject": "SM", "doc_type": "MTP", "attempt_period": "January_2026", "text": "(b)  \nIn light of the five forces as propagated by Michael Porter, explain the common \nbarriers which may cause restrain for the keenness of new entrepreneurs. \n \n(5 Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_January_2026_MTP_2_Questions.pdf", "subject": "SM", "doc_type": "MTP", "attempt_period": "January_2026", "text": "(b)  \nWhat are channels? Why is channel analysis important? Explain the different \ntypes of channels? \n(5 Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_January_2026_MTP_2_Questions.pdf", "subject": "SM", "doc_type": "MTP", "attempt_period": "January_2026", "text": "(a) \nExplain the concept of vertically integrated diversification. How is forward \nintegration different from backward integration? \n       (5 Marks) \n \n \nDownloaded From www.castudynotes.com \nJoin Us on Telegram http://t.me/canotes_ipcc"}, {"source_file": "Inter_P6_FMSM_FM_SM_January_2026_MTP_2_Questions.pdf", "subject": "SM", "doc_type": "MTP", "attempt_period": "January_2026", "text": "(b)  \nAlthough functional-level managers operate at the lower end of the management \nhierarchy, their responsibilities are vital to ensure the smooth and successful \nfunctioning of a business. Discuss the importance of functional-level managers in \nachieving organisational objectives. \nOR \n \nXYZ Enterprises operates in various sectors, including renewable energy \nsolutions, organic skincare products, eco-friendly packaging, and smart home \ntechnologies. The organization is currently in the process of recruiting a Chief \nExecutive Officer. In this scenario, imagine yourself as an HR consultant for  \nXYZ Enterprises. Identify the strategic level that encompasses this role within  \nXYZ Enterprises. Provide an overview of the key duties and responsibilities falling \nunder the Chief Executive Officer's scope. \n(5 Marks) \nDownloaded From www.castudynotes.com \nJoin Us on Telegram http://t.me/canotes_ipcc"}]

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+[{"source_file": "Inter_P6_FMSM_FM_SM_May_2024_MTP_1_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "May_2024", "text": "TimeAllowed\u20133Hours(Totaltimefor6Aand6B) \nMaximumMarks\u201350 \n1. \nThequestionpapercomprisestwoparts,PartIandPartII. \n2. \nPartIcomprisesCaseScenariobasedMultipleChoiceQuestions(MCQs) \n3. \nPartIIcomprisesquestionswhichrequiredescriptivetypeanswers. \n4. \nWorking note should form part of the answer. Wherever necessary, suitable \nassumptions may be made by the candidates and disclosed by way of note. \nHowever, in answers to Questions in Division A, working notes are notrequired. \nPARTI\u2013CaseScenariobasedMCQs(15Marks) \nWrite the most appropriate answer to each of the following multiple \nchoicequestions by choosing one of the four options given. All questions \narecompulsory. \n \n1. \nNV Industries Ltd. is a manufacturing industry which manages its accounts \nreceivables internally by its sales and credit department. It supplies small \narticlestodifferentindustries.Thetotalsalesledgerofthecompanystands \nat`200lakhsofwhich80%iscreditsales.Thecompanyhasacreditpolicy of 2/40, net \n120. Past experience of the company has been that on averageout of the total, \n50% of customers avail of discount and the balance of the receivables are \ncollected on average in 120 days. The finance controller estimated, bad debt \nlosses are around 1% ofcreditsales. \nWith escalating cost associated with the in-house management of the debtors \ncoupled with the need to unburden the management with the task so as to \nfocus on sales promotion, the CFO is examining the possibility of outsourcing \nits factoring service for managing its receivables. Currently, the firm spends \nabout ` 2,40,000 per annum to administer its credit sales. These are avoidable \nas afactoringfirmispreparedtobuy the firm'sreceivables.The main elements of \nthe proposal are : (i) It will charge 2% commission (ii) It will pay advance \nagainst receivables to the firm at an interest rate of 18% after withholding 10% \nas reserve. \nAlso, company has option to take long term loan at 15% interest or may take \nbank finance for working capital at 14% interest. \nYou were also present at the meeting; being a financial consultant, the CFO \nhas asked you to be ready with the following questions: \nConsideryearas360days. \nI. \nWhatisaveragelevelofreceivablesofthecompany? \na. \n`53,33,333 \nb. \n`35,55,556 \nc. \n`44,44,444 \nd. \n`71,11,111 \nII. \nHowmuchadvancefactorwillpayagainstreceivables? \na. \n`31,28,889 \nb. \n`39,11,111 \nc. \n`30,03,733 \nd. \n`46,93,333 \nIII. \nWhatistheannualcostoffactoringtothecompany? \na. \n`8,83,200 \nb. \n`4,26,667 \nc. \n`5,51,823 \nd. \n`4,00,000 \nIV. \nWhatisthenetcosttothecompanyontakingfactoringservice? \na. \n`4,00,000 \nb. \n`4,26,667 \nc. \n`3,50,000 \nd. \n`4,83,200 \nV. \nWhatistheeffectivecostoffactoringonadvancereceived? \na. \n16.09% \nb. \n13.31% \nc. \n12.78% \nd. \n15.89% \n(5x2=10Marks) \n2. \nRamuLtd.wantstoimplementaprojectforwhich`25lakhsisrequired. Following \nfinancing options are at hand: \nOption1: \nEquityShares \n25,000@`100 \nOption2: \nEquityShares \n10,000@`100 \n12%PreferenceShares \n5,000@`100 \n10%Debentures \n10,000@`100 \nWhat is the indifference point & EPS at that level of EBIT assuming corporate \ntax to be 35%."}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2024_MTP_1_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "May_2024", "text": "(a) \nThe following figures have been extracted from the annual report of Xee \nLtd.: \n \nNetProfit \n`54lakhs \nOutstanding12%preferenceshares \n`200lakhs \nNo.ofequityshares \n2lakhs \nReturnonInvestment \n22% \nCostofcapitali.e.(Ke) \n15% \nCOMPUTEtheapproximatedividendpay-outratiosoastokeepthe share price \nat `120 by using Walter\u2019s model? \n(Decimalmaybetakenupto2units) \n(5Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2024_MTP_1_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "May_2024", "text": "(b) \nCapitalstructure(inmarket-valueterms)ofANLtdisgivenbelow: \n \nCompany \nDebt \nEquity \nANLtd. \n50% \n50% \nThe borrowing rate for the company is 10% in a no-tax world and capital \nmarkets are assumed to be perfect. \nRequired:"}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2024_MTP_1_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "May_2024", "text": "(i) \nIf Mr. R, owns 8% of the equity shares of AN Ltd., DETERMINE his \nreturn if the Company has net operating income of ` 10,00,000 and \ntheoverallcapitalizationrateofthecompany(Ko)is20%. \n(ii) \nCALCULATEtheimpliedrequiredrateofreturnonequityofANLtd. \n(5Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2024_MTP_1_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "May_2024", "text": "(c) \nANVY Ltd. has furnished the following ratios and information for the year \nend 31stMarch, 2023: \n \nEquitysharecapital \n`2,00,000 \nTherelevantratiosofthecompanyareasfollows: \nCurrentdebttototaldebt \n0.50 \nTotaldebttoEquitysharecapital \n0.60 \nFixedassetstoEquitysharecapital \n0.70 \nTotalassetsturnover \n2.5Times \nInventoryturnover \n10Times \nYou are required toPREPARE the Balance Sheet of ANVY Ltd. as \non31stMarch,2023. \n(5Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2024_MTP_1_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "May_2024", "text": "(a)NC Ltd. Is considering purchasing a new machine to increase itsproduction \nfacility. At present, it uses an old machine which can process 5,000 units \nof TVs per week. NC could replace it with new machine,which is product \nspecific and can produce 15,000 units per week. New machine cost ` 100 \ncrores and requires the working capital of ` 3 crores, which will be \nreleased at the end of 5thyear. The new machine is expected to have a \nsalvage value of` 20 crores. \nThecompanyexpectsdemandforTVstobe10,000unitsperweek. \nEach \nTV \nsells for ` 30,000 and has Profit Volume Ratio (PV) of 0.10. The company \nworks for the 56 weeks in the year. Additional fixed costs (excluding \ndepreciation) are estimated to increase by ` 10 crores. The company is \nsubject to a 40% tax rate and its after-tax cost of capital is 20%. The \nrelevant rate of depreciation is 25 % for both taxation and accounts. The \ncompany uses the WDV method of depreciation. The existing machine \nwill have no scrap value. \nYouarerequiredto: \nADVISEwhetherthecompanyshouldreplacetheoldmachine. \n(Decimalmaybetakenupto2units) \n(8Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2024_MTP_1_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "May_2024", "text": "(a)RamLtd evaluates all its capital projects using discounting rate of 16%.Its \ncapital structure consists of equity share capital, retained earnings, bank \nterm loan and debentures redeemable at par. Rate of interest on bank \nterm loan is 1.4 times that of debenture. Remaining tenure of debenture \nand bank loan is 4 years and 6 years respectively. Book value \nofequitysharecapital,retainedearningsandbankloanis`20,00,000, \n` 30,00,000 and ` 20,00,000 respectively. Debentures which are having \nbook value of `30,00,000 are currently trading at`98 per debenture. \nTheongoingPEmultiplefortheshares ofthecompanystands at4. \nYouarerequiredto:"}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2024_MTP_1_Questions.pdf", "subject": "SM", "doc_type": "MTP", "attempt_period": "May_2024", "text": "Question 1.(A)(Compulsory) \n1. \n(A)In the fiercely competitive automotive industry, Zing, a promising newcomer, \nset out on a strategic journey with ambitions of making a substantial \nimpact. Recognizing the significance of a robust distribution network early \non, Zing forged partnerships with established dealerships, offering them \nattractive margins. This strategic move significantly enhanced Zing's \nreach, with a presence in 80% of the nation'sdealerships by 2022, \nexpandingits coveragesignificantly. \nTo differentiate themselves from competitors, Zing adopted two key \nstrategies. Firstly, they prioritized product design, investing heavily in \naesthetics and incorporating innovative features and environmentally \nfriendly technologies. This focus on design led to their vehicles receiving \nexcellent reviews and achieving an impressive 15% year-on-year growth \nin sales. \nSecondly, Zing implemented switching costs to discourage customers \nfromswitchingtootherbrands.Theirvehiclesfeaturedbranded \nsoftware, \nmaking it both expensive and cumbersome for customers to transition to \nalternative brands. This strategic move effectively protected Zing's market \nshare. \nZing's overarching goal was to position itself as a premium automotive \nbrand, blending luxury with sustainability. However, their execution fell \ndown as they challenged with maintaining consistent quality and service \nlevels, resulting in mixed customer reviews. \nDespite their best efforts, Zing's differentiation strategy fell short due to \nissues with inconsistent quality and service. Negative word-of-mouth and \ndeclining customer satisfaction scores tarnished their brand image, \nleading to stagnating sales. This failure to deliver on their brand promise \nproved to be a significant setback. \nAs Zing's reputation suffered from execution failures, securing additional \nfunds for international expansion became challenging. Consequently,they \nmade the difficult decision to postpone their global ambitions for the next \nfive years, focusing instead on stabilizing their finances and rebuilding \ntheir brand image. \nInsummary,Zing'sstrategicjourneyillustratestheimportanceofnot \nonly \ncrafting a compelling differentiation strategy but also executing it \nflawlessly.Inthecompetitiveautomotivelandscape,maintaining \nconsistentqualityandserviceisparamounttosustainingbrandloyalty and \nachieving long-term success. \nBasedontheaboveCaseScenario,answertheMultipleChoiceQuestions."}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2024_MTP_1_Questions.pdf", "subject": "SM", "doc_type": "MTP", "attempt_period": "May_2024", "text": "(i) \nTechMex Inc., a leading technology company, offers a diverse \nportfolio of products ranging from established cash cows to \npromising question marks. As part of its strategic planning process, \nthe company aims to assess its product portfolio's performance and \nallocate resources effectively. In which quadrant of the BCG Matrix \nwould TechMex's new innovative product, recently launched in a \nrapidly growing market, likely fall into?"}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2024_MTP_1_Questions.pdf", "subject": "SM", "doc_type": "MTP", "attempt_period": "May_2024", "text": "(d) \nStar \n(2Marks) \n(ii) \nBlueSky Enterprises, a multinational corporation specializing in \nrenewable energy solutions, is undergoing a strategictransformation \nto enhance its competitive position in the market. As part of this \ninitiative, \nthe \ncompany \nis \nreevaluating \nits \norganizational \nstructure,processes,andculture.WhichaspectoftheMcKinsey \n7S \nModel is most relevant for BlueSky Enterprises during this strategic \ntransformation?"}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2024_MTP_1_Questions.pdf", "subject": "SM", "doc_type": "MTP", "attempt_period": "May_2024", "text": "(a)Swatiisthemarketingmanageratasoftwarecompany.Sheis \nresponsiblefordevelopingandimplementingmarketingstrategiesfor \nthe \ncompany\u2019s products. Swati leads a team of marketing professionals and \nworks closely with the product development and sales teams to ensure \nthat the company's products are effectively promoted in the market. She \nalso \nanalyzes \nmarket \ntrends \nand \ncustomer \nfeedback \ntorefinethemarketingstrategies.Whichlevelissheworkingat,discuss \ntherolesandresponsibilitiesofthislevelinorganization?(5Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2024_MTP_1_Questions.pdf", "subject": "SM", "doc_type": "MTP", "attempt_period": "May_2024", "text": "(b) \nABC Corp, a multinational consumer electronics company, is planning to \nexpand its operations into a new country. The company's senior \nmanagement is evaluating the potential risks and opportunities \nofenteringthisnewmarket.Aspartoftheiranalysis,theydecidetouse \nthe PESTLE framework to assess the external factors that could impact \ntheir decision. How can the PESTLE framework help ABC Corp assess \ntheexternalfactorsaffectingitsdecisiontoexpandintoanewcountry? \n(5Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2024_MTP_1_Questions.pdf", "subject": "SM", "doc_type": "MTP", "attempt_period": "May_2024", "text": "(c) \nImagine you are a consultant advising a small manufacturing company \nembarking on a digital transformation journey. The company's leadership \nis concerned about managing the change effectively. Using the best \npractices for managing change in small and medium-sized businesses, \noutline a strategy to help the company navigate this transformation \nsuccessfully. \n(5Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2024_MTP_1_Questions.pdf", "subject": "SM", "doc_type": "MTP", "attempt_period": "May_2024", "text": "(a)Imagine you are a strategic consultant advising a retail company that is \nfacing increasing competition from online retailers. The company is \nconsidering severalstrategic options toimproveits market position. Using \nthe concept that strategy is partly proactive and partly reactive, explain \nhow the company can develop a strategic approach to address \nthischallenge. \n(5Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2024_MTP_1_Questions.pdf", "subject": "SM", "doc_type": "MTP", "attempt_period": "May_2024", "text": "(b) \nYou are a strategic manager for a tech company launching a new \nsmartphone model. The company wants to target tech-savvy consumers \nwho value innovation and cutting-edge technology. Using the concept of \ncustomer behavior, develop a marketing strategy to promote the new \nsmartphone. \n(5Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2024_MTP_1_Questions.pdf", "subject": "SM", "doc_type": "MTP", "attempt_period": "May_2024", "text": "(a)Abeveragecompanyislaunchinganewlineofenergydrinkstargeted at healthconscious consumers.The strategic manager wants to studythe market \nposition of rival companies in the energy drink segment.Which tool can be \nused for this analysis, and what is the procedure to implementiteffectively?\n \n(5Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2024_MTP_1_Questions.pdf", "subject": "SM", "doc_type": "MTP", "attempt_period": "May_2024", "text": "(b) \nTheCEOof atextilemill believesthathiscompany,currentlyoperating at a \nloss, can be turned around. Develop an action plan outlining \nstepstheCEOcantaketoachievethisturnaround. \n(5Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2024_MTP_1_Questions.pdf", "subject": "SM", "doc_type": "MTP", "attempt_period": "May_2024", "text": "(b) \nHow can Mendelow's Matrix be used to analyze and manage the \nstakeholders effectively? \nOR \nDistinguish \nbetween Concentric \nDiversification \nand Conglomerate \nDiversification. \n \n \n \n \n(5Marks)"}]

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+[{"source_file": "Inter_P6_FMSM_FM_SM_May_2024_MTP_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "May_2024", "text": "TimeAllowed\u20133Hours(Totaltimefor6Aand6B) \nMaximumMarks\u201350 \n1. \nThequestionpapercomprisestwoparts,PartIandPartII. \n2. \nPartIcomprisesCaseScenariobasedMultipleChoiceQuestions(MCQs) \n3. \nPartIIcomprisesquestionswhichrequiredescriptivetypeanswers. \n4. \nWorking note should form part of the answer. Wherever necessary, suitable \nassumptions may be made by the candidates and disclosed by way of note. \nHowever, in answers to Questions in Division A, working notes are notrequired. \nPARTI\u2013CaseScenariobasedMCQs(15Marks) \nWrite the most appropriate answer to each of the following multiple \nchoicequestions by choosing one of the four options given. All questions \narecompulsory. \n \n1. \nTiago Ltd is an all-equity company engaged in manufacturing of batteries for \nelectric vehicles. There has been a surge in demand for their products due to \nrising oil prices. The company was established 5 years ago with an \ninitialcapitalof`10,00,000andsincethenithasraisedfundsbyIPOtakingthe \ntotal \npaid up capital to`1 crore comprising of fully paid-up equity shares of face \nvalue ` 10 each. The company currently has undistributed reserves of ` \n60,00,000.Thecompanyhasbeenfollowingconstantdividendpayoutpolicy of 40% \nof earnings. The retained earnings by company are going to provide a return on \nequity of 20%. The current EPS is estimated as Rs 20 and prevailing PE ratio \non the share of company is 15x. The company wants to expand its capital base \nby raising additional funds by way of debt, preference and equity mix. The \ncompany requires an additional fund of`1,20,00,000. The targetratio of owned \nto borrowed funds is 4:1 post the fund-raising activity. Capital gearing is to be \nkept at 0.4x. \nThe existing debt markets are under pressure due to ongoing RBI action on \nNPAsofthecommercialbank.Duetochallengesinraisingthedebtfunds, \nthe \ncompany will have to offer `100 face value debentures at an attractive yield of \n9.5% and a coupon rate of 8% to the investors. Issue expenses will amount to \n4% of the proceeds. \nThe preference shares will have a face value of`1000 each offering a \ndividendrateof10%.Thepreferenceshareswillbeissuedatapremiumof \n5% and redeemed at a premium of 10% after 10 years at the same time at \nwhich debentures will be redeemed. \nThe CFO of the company is evaluating a new battery technology to invest the \nabove raised money. The technology is expected to have a life of 7 years. Itwill \ngenerate a after tax marginal operating cash flow of ` 25,00,000 p.a. Assume \nmarginal tax rate to be 27%. \n1. \nWhichofthefollowingisbestestimateofcostofequityforTiagoLtd?"}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2024_MTP_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "May_2024", "text": "(d) \n12.22% \n5. \nWhich of the following best represents the overall cost of marginal capital \nto be raised?"}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2024_MTP_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "May_2024", "text": "(d) \n16.71% \n(5x 2=10 Marks) \n2. \nRanu & Co. has issued 10% debenture of face value 100 for ` 10 lakh. The \ndebenture is expected to be sold at 5% discount. It will also involve floatation \ncosts of ` 10 per debenture. The debentures are redeemable at a premium of \n10%after10years.Calculatethecostofdebentureifthetaxrateis30%."}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2024_MTP_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "May_2024", "text": "(d) \n10.12% \n(2Marks) \n3. \nGiven Data: Sales is `10,00,000, Break even sales is ` \n6,00,000.What is the Degree of operating leverage?"}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2024_MTP_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "May_2024", "text": "(d) \n2.2 \n(2Marks) \n4. \nA project requires an initial investment of ` 20,000 and it would give annual \ncashinflow of`4,000.Theusefullifeoftheprojectis estimatedtobe10 years. What is \npayback reciprocal/Approximated IRR?"}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2024_MTP_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "May_2024", "text": "(a) \nThebelowinformationforLeverLtdisprovidedonannualbasis: \n \n` \nSalesat3monthscredit \n48,00,000 \nMaterialsconsumed(suppliersextend2monthscredit) \n12,00,000 \nWagespaid(onemonthlaginpayment) \n9,60,000 \nCashmanufacturingexpenses(paidonmonthinarrear) \n12,00,000 \nAdministrativeexpense(onemonthlaginpayment) \n3,60,000 \nSalespromotionexpense(paidmonthlyinadvance) \n1,20,000 \nTheCompanysellsitsproductsatagrossprofitof20%. \nThe Company keeps two months stock of raw materials and two months \nstock of finished goods. \nDepreciation is considered as a part of cost of production. \nCash balance is retained at ` 1,00,000, \nAssuminga15%margin,COMPUTEtheworkingcapitalrequirements \noftheCompanyoncashcostbasis.Ignorework-inprogress. \n(5Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2024_MTP_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "May_2024", "text": "(b) \nSOC Ltd has 10 lakh equity shares outstanding at the beginning of the \naccounting year 2024. The existing market price per share is Rs 600. \nExpected dividend is Rs 40 per share. The rate of capitalization \nappropriateto therisk class towhich the company belongs is20%."}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2024_MTP_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "May_2024", "text": "(i) \nCALCULATE the market price per share by the end of the yearwhen \nexpected dividends are: (a) declared, and (b) not declared, based on \nthe Miller \u2013 Modigliani approach. \n(ii) \nCALCULATE the number of shares to be issued by the company at \nthe end of the accounting year on the assumption that the net \nincome for the year is Rs 15 crore; investment budget is Rs 20 \ncrores, when (a) Dividends are declared, and (b) Dividends are not \ndeclared. \n(iii) PROVE that the market value of the shares at the end of the \naccounting year will remain unchanged irrespective of whether (a) \nDividendsaredeclared, or(ii) Dividendsarenotdeclared. \n(5Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2024_MTP_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "May_2024", "text": "(c) \nAn existing profitable company, RMC World Ltd. is considering a new \nproject for manufacture of home automation gadget involving a capital \nexpenditure of ` 1000 Lakhs and working capital of ` 150 Lakhs. The \ncapacity of the plants for an annual production of3 lakh units andcapacity \nutilization during 5 year life of the project is expected to be as indicated \nbelow: \n \nYear \n2 \n4 \nCapacityUtilization(%) \n65 \n100 \nThe average price per unit of product is expected to be `600 netting a \ncontribution of 60percent. The annual fixed costs, excludingdepreciation, \nare estimated to be `500 Lakhs per annum from the third \nyearonwards.Forthefirstandsecondyear,itwouldbe`200lakhsand \n`350lakhsrespectively. \nScrap value of the capital asset at the end of 5th year is ` 200 Lakhs. \nDepreciation on capital asset is provided on written down value basis @ \n40%p.a.forincometaxpurpose.Therateofincometaxmaybetaken \nat \n30%. \nThe cost of capital is 12%. At end of the third year an additional \ninvestmentof`200lakhswouldberequiredforworkingcapital.There \nis \nno \ncapital gain tax applicable. \nCOMPUTE the NPV of the project. RMC World Ltd. is about to make a \npresentation to Secure Venture Capital Firm. Secure Venture Capital \nFirms will invest in any project if the net addition to shareholder wealth \nfromtheprojectisabove`100lakhs. \n(5Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2024_MTP_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "May_2024", "text": "(a)FromthefollowingPREPAREIncomestatementofcompanyPandQ. \n \nP \nQ \nNo.ofEquity Shares \n1,00,000 \n70,000 \nFinancialleverage \n3 : 1 \n4 : 1 \nOperatingLeverage \n2:1 \n3:1 \nVariablecosttosales \n67% \n50% \nInterest \n\u20b95,50,000 \n\u20b96,00,000 \nIncometaxrate \n30% \n30% \nAlsoCALCULATEEPSofthecompany. \n(4Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2024_MTP_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "May_2024", "text": "(b) \nThe GT Limited is willing to expand its business for which it requires an \nadditional finance of ` 50,00,000. At present, the capital structure of the \ncompany is as under: \n\uf0b7 \n7,00,000Equitysharesof \n`10each \n\uf0b7 \n10%Debentures \n` 63,00,000 \n\uf0b7 \n12%Termloan \n` 54,00,000 \n\uf0b7 \nRetainedearnings \n`1,30,00,000 \nAt present, the company's EBIT is ` 54,00,000. However, the company, \nafter expansion, expects ROI 2% greater than the present ROI, Income \nTax Rate is 30%. \nFollowingtwooptions,forgettingadditionalfinance,areavailable-"}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2024_MTP_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "May_2024", "text": "(b) \nTo raise funds by issuing 1,00,000 equity shares at `20 per \nshareand balance by issuing 11% debentures at par. \nRequired:"}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2024_MTP_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "May_2024", "text": "(a) \nEOCLtdisalistedcompanyandhaspresentedthebelowabridged financial \nstatements below. \n \nStatementofProfitandLoss \n` \n` \nSales \n1,25,00,000 \nCostofgoodssold \n(76,40,000) \nGross Profit \n48,60,000 \nLess:OperatingExpenses \nAdministrativeExpenses \n13,20,000 \nSellingandDistributionExpenses \n15,90,000 \n(29,10,000) \nOperatingProfit \n19,50,000 \nAdd:NonOperating Income \n3,28,000 \nLess:NonOperatingExpenses \n(1,27,000) \nProfitbeforeInterestandtaxes \n21,51,000 \nLess: Interest \n(4,39,000) \nProfitbeforetax \n17,12,000 \nLess: Taxes \n(4,28,000) \nProfitafterTax \n12,84,000 \nBalanceSheet \n \nSourcesof Funds \n` \n` \nOwnedFunds \nEquityShareCapital \n30,00,000 \nReservesandSurplus \n18,00,000 \n48,00,000 \nBorrowed Funds \nSecuredLoan \n10,00,000 \nUnsecured Loan \n4,30,000 \n14,30,000 \nTotalFunds Raised \n62,30,000 \nApplicationofFunds \nNon-CurrentAssets \nBuilding \n7,50,000 \nMachinery \n2,30,000 \nFurniture \n7,60,000 \nIntangibleAssets \n50,000 \n17,90,000 \nCurrentAssets \nInventory \n38,60,000 \nReceivables \n39,97,000 \nST investments \n3,00,000 \nCashandBank \n2,30,000 \n83,87,000 \nLess:CurrentLiabilities \nCreditors \n25,67,000 \nST loans \n13,80,000 (39,47,000) \nTotalFunds Employed \n62,30,000 \nThe company has set certain standards for the upcoming year \nfinancialstatus. \nAlltheratiosarebasedonclosingfiguresinfinancialstatements. \n \nEquitySCto Reserves= \nNetProfitRatio= \n15% \nGrossProfit Ratio= \n50% \nLongTermDebttoEquity= \n0.5 \nDebtorTurnover= \n100 Days \nCreditorTurnover(basedonCOGS)= \n100 Days \nInventory= \n70% ofOpeninginventory \nCash Balance is assumed to remain same for next year \nYou are required to - \n(1) \nCALCULATEinventoryturnoverratioindaysforcurrent year \n(2) \nCALCULATEreceivablesturnoverratioindaysforcurrentyear \n(3) \nCALCULATEtheprojectedreceivables,inventory,payablesandlong \ntermdebt \n(8Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2024_MTP_2_Questions.pdf", "subject": "SM", "doc_type": "MTP", "attempt_period": "May_2024", "text": "Question1.(A)(Compulsory) \n1. \n(A)Caf\u00e9 Delight, a thriving restaurant chain known for its unique blend of \nAustralian and Indian culinary experiences, embarked on a remarkable \njourney from its humble beginnings as a small caf\u00e9 in Australia to \nbecoming a renowned player in the Indian restaurant industry. This case \nstudy digs into the strategic decisions and market dynamics that fueled \nCaf\u00e9 Delight's growth, highlighting its transition from a single caf\u00e9 in \nPowai, Mumbai, to a flourishing chain with a presence in five cities and \nover 25 stores. It explores how Caf\u00e9 Delight effectively leveraged social \nmedia and adapted its pricing strategy to compete with global brands \nwhile maintaining a healthy profit margin. \nIn 2005, Caf\u00e9 Delight was founded in Melbourne, Australia, by a \npassionateentrepreneurwithavisiontobringtheflavorsofAustralia and India \ntogether. The first caf\u00e9 established in Powai, Mumbai, received accolades \nfor its unique menu, blending Australian coffee culture with Indian culinary \ntraditions. Over the course of five years, Caf\u00e9 Delight expanded to three \nstores in Mumbai, driven by exceptional mouth publicity, customer loyalty, \nand consistent quality. \nAs the social media landscape evolved, Caf\u00e9 Delight recognized the \npower of online platforms in reaching a wider audience. By effectively \nutilizing social media and online marketing, Caf\u00e9 Delight expanded its \npresence to five cities across India and established over 25 stores. \nCustomerengagementthroughsocialmediaplatformsenabledthe \nbrandtocreateastrongandvibrantcommunity,drivingorganicgrowth. \nCaf\u00e9 Delight's customer-centric approach involved continuously evolving \nits menu to cater to the changing tastes and dietary preferences of its \npatrons. By understanding the evolving needs of its customers, Caf\u00e9 \nDelight could offer personalized menu items, seasonal specials, and \ndietary alternatives. This approach created a sense of loyalty and \nengagement among customers, strengthening the brand's appeal. Notjust \ncustomers but High-power, low-interest stakeholders, including regulatory \nauthorities, were addressed with careful compliance and adherence to \nindustry \nstandards. \nLow-power, \nhigh-interest \nstakeholders, \nlikepotentialcustomersandlocalcommunities,wereengagedthrough \ntargeted marketing campaigns and community involvement initiatives.This \nmeticulous stakeholder analysis allowed Caf\u00e9 Delight to build and \nmaintain strong relationships with each group, effectively managing their \ninfluence and impact on the brand. \nWith its expanding presence and increasing popularity, Caf\u00e9 Delight \nunderwent a shift in its pricing strategy. It transitioned from a pocket- \nfriendly pricing model to a skimming strategy, capitalizing on its unique \nblend of Australian and Indian flavors to position itself as a premium \nrestaurant. Caf\u00e9 Delight faced stiff competition from global brandsentering \nthe \nIndian \nmarket \nbut \nmaintained \na \nprofit \nmargin \nofapproximately30%throughmenuengineeringandtargetedpricing. \nIn one of its kind, using strategic tools enabled Caf\u00e9 Delight to identifyand \nact on opportunities while mitigating threats, contributing to its long- \ntermsuccess inthehighly competitiverestaurantindustry. \nBased on the above Case Scenario, answer the Multiple-Choice \nQuestions."}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2024_MTP_2_Questions.pdf", "subject": "SM", "doc_type": "MTP", "attempt_period": "May_2024", "text": "(i) \nCaf\u00e9 Delight effectively leveraged social media and adapted its \npricing strategy as it stepped into which phase of business life cycle \nof operations?"}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2024_MTP_2_Questions.pdf", "subject": "SM", "doc_type": "MTP", "attempt_period": "May_2024", "text": "(d) \nDeclineStage \n(2Marks) \n(ii) \nWhat stakeholder group did Caf\u00e9 Delight engage through \ntargetedmarketing campaigns and community \ninvolvementinitiatives?"}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2024_MTP_2_Questions.pdf", "subject": "SM", "doc_type": "MTP", "attempt_period": "May_2024", "text": "(d) \nHigh-power,low-intereststakeholders \n(2Marks) \n(iii) \nWhat best describes Caf\u00e9Delight's initial expansion strategy whenit \nexpanded from one caf\u00e9 to three in Mumbai?"}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2024_MTP_2_Questions.pdf", "subject": "SM", "doc_type": "MTP", "attempt_period": "May_2024", "text": "(d) \nEmbracingglobalbrandingstrategies \n(2Marks) \n(iv) At which level of strategic management does Caf\u00e9 Delight's \ntransition from a pocket-friendly pricing model to a skimmingstrategy \nfit?"}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2024_MTP_2_Questions.pdf", "subject": "SM", "doc_type": "MTP", "attempt_period": "May_2024", "text": "(v) \nWhat type of strategy did Caf\u00e9 Delight use to differentiate itself from \ncompetitors in the Indian restaurant industry?"}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2024_MTP_2_Questions.pdf", "subject": "SM", "doc_type": "MTP", "attempt_period": "May_2024", "text": "(i) \nShamita joined GlobalX Consulting firm as an Analyst in financial \nfraud mitigation. In her very first assignment she faced an integrity \ndilemma where her subordinates had missed calling out a potential \nfinancial risk which could impact the overall fraud rating of the \norganisation. She quickly reached out to her seniors who \nappreciated her diligence and immediately reported the same to \nseniormanagement.Inthisscenariowhichelement,softorhard, is acting \nin favor of GlobalX?"}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2024_MTP_2_Questions.pdf", "subject": "SM", "doc_type": "MTP", "attempt_period": "May_2024", "text": "(d) \nStaff \n(2Marks) \n(ii) \nChocopo, an ice cream company run by Shri Shyam Kumar since \n1985, now had its management change to his two daughters, who \ncame in and wanted to experiment with a lot of flavors. They \nintroduced21newflavorsinaspanof6monthswhilenotlosing \nout \nof \n2legendary flavors oftheir dadi.e. Stick Kulfi andMango Bar. After \nyear 1 of operations, 9 out of the 21 flavors had to be stopped, while \n10 flavors were still kept, extending the experimentation. The early \nsense from market was that they would have to be stopped too, but \nthe sisters decided to extend their timelines. Whatcategory as \nperBCGMatrixwouldthe 10flavors fall into?"}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2024_MTP_2_Questions.pdf", "subject": "SM", "doc_type": "MTP", "attempt_period": "May_2024", "text": "(d) \nStar \n(2Marks) \n(iii) \nA company negotiating the best prices and quality from its suppliers \nto add to customer\u2019s delight is an example of?"}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2024_MTP_2_Questions.pdf", "subject": "SM", "doc_type": "MTP", "attempt_period": "May_2024", "text": "(a)ABC retail chain regularly monitors consumer trends and supply chain \nflexibility. The retail chain tracks consumer trends to adjust its offerings, \nensuring they meet customer needs. Simultaneously, it maintains a \nflexible supply chain to respond swiftly to demand fluctuations. This \nstrategyenablesABCretailchaintoanticipatemarketshiftsandadapt to them \neffectively, \nensuring \nits \ncompetitiveness \nand \ncustomer \nsatisfaction.Whichtypeofstrategyistheretailchainemploying? \n(5Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2024_MTP_2_Questions.pdf", "subject": "SM", "doc_type": "MTP", "attempt_period": "May_2024", "text": "(b) \nA Mumbai-based conglomerate, PQR Ltd., has announced a major \nrestructuringofitsbusinessoperations.Thecompanyhasdecidedto \nsplititsbusinessintofourseparateunits:Manufacturing,Retail, \nServices,andTechnology.Eachunitwilloperateasaseparate business, with \ndelegated responsibility for day-to-day operations and strategy to the \nrespective unit managers. Identify the organization structure that PQR \nLtd. has planned to implement. Discuss any four attributes and the \nbenefits the firm may derive by using this organization structure.\n \n(5Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2024_MTP_2_Questions.pdf", "subject": "SM", "doc_type": "MTP", "attempt_period": "May_2024", "text": "(c) \nGreenThriftInc.,asustainableclothingretailer,isexperiencingasurge \nin \npopularity due to the growing awareness of environmental issues among \nconsumers. The company specializes in selling second-hand clothing and \nupcycled garments, offering an eco-friendly alternative to traditional fast \nfashion. \nAmajorconcernforGreenThriftInc.istheemergenceofnew \nsustainable \nfashion brands in the market. These brands focus on using organic and \nrecycled materials, as well as ethical manufacturingpractices, which align \nwith the values of environmentally conscious consumers. \nIdentify andexplainthatcompetitionfromnew sustainablefashion brands \nfalls under which category of Porter\u2019s Five Forces Model for \nCompetitiveAnalysis? \n(5Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2024_MTP_2_Questions.pdf", "subject": "SM", "doc_type": "MTP", "attempt_period": "May_2024", "text": "(a)\u201cEach organization must build its competitive advantage keeping in mind the \nbusiness warfare. This can be done by following the process of strategic \nmanagement.\u201d \nConsidering \nthis \nstatement, \nexplain \nmajorbenefitsofstrategicmanagement. \n(5Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2024_MTP_2_Questions.pdf", "subject": "SM", "doc_type": "MTP", "attempt_period": "May_2024", "text": "(b) \nReshuffle Corp is a company that manufactures and sells office furniture. \nThey offer a range of products, from desks and chairs to cabinets and \nshelves. Recently, the company has been facing increased competition \nfromonlineretailersofferingsimilar productsatlower prices. \nAnalyzingthecharacteristicsofproductsinthefurnitureindustry, discuss how \nReshuffle \nCorp \ncan \ndifferentiate \nits \nproducts \nto \nmaintain \na \ncompetitiveedgeinthemarket. \n(5Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2024_MTP_2_Questions.pdf", "subject": "SM", "doc_type": "MTP", "attempt_period": "May_2024", "text": "(a)EasyLifeCorporation,aleadingmanufacturerofconsumerelectronics, \nis \nconsidering launching a new line of smart home devices. As a strategic \nmanager, conduct a SWOT analysis for EasyLife Corporation to assess \nthe feasibility and potential success of this new venture. Consider both \ninternal and external factors that could impact the success of the new \nproductline. \n(5Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2024_MTP_2_Questions.pdf", "subject": "SM", "doc_type": "MTP", "attempt_period": "May_2024", "text": "(b) \nExplain the concept of forward and backward linkages between strategy \nformulation and implementation in strategic management, using relevant \nexamples. How do these linkages impact the overall strategic decision- \nmakingprocessofanorganization? \n(5Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2024_MTP_2_Questions.pdf", "subject": "SM", "doc_type": "MTP", "attempt_period": "May_2024", "text": "(b) \nStarTech Solutions, an aerospace technology firm, operates in a highly \ncompetitive industry. Despite the fierce competition in the aerospace \nsector, StarTech has carved out a niche for itself by focusing on serving \nunique,high-endclients.Unlikeitscompetitors,StarTechhaschosen \nnot \nto \ndiversify its target market and instead specializes in providing cuttingedge solutions to this niche market. \nIdentify and explain the strategy adopted by StarTech Solutions. Discuss \nthe advantages and disadvantages of this strategy. \nOR \nStrategic alliances are formed if they provide an advantage to all the \npartiesinthealliance.Doyouagree?Explaininbrieftheadvantagesof \nastrategicalliance. \n(5Marks)"}]

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+[{"source_file": "Inter_P6_FMSM_FM_SM_May_2025_MTP_1_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "May_2025", "text": "Time Allowed \u2013 3 Hours (Total time for 6A and 6B)  \nMaximum Marks \u2013 50 \n1. \nThe question paper comprises two parts, Part I and Part II. \n2. \nPart I comprises Case Scenario based Multiple Choice Questions (MCQs) \n3. \nPart II comprises questions which require descriptive type answers. \n4. \nWorking note should form part of the answer. Wherever necessary, suitable assumptions \nmay be made by the candidates and disclosed by way of note. However, in answers to \nQuestions in Division A, working notes are not required. \nPART I \u2013 Case Scenario based MCQs (15 Marks) \nWrite the most appropriate answer to each of the following multiple choice questions by \nchoosing one of the four options given. All questions are compulsory. \n \nReema Industries is into trading business. Since its establishment it has seen a phenomenal \ngrowth in both its market share and profitability. The company enjoys the confidence of its \nshareholders who have been rewarded with growing dividends year after year. The company \nhas never defaulted on its loan payments and enjoys a favourable face with its lenders, which \ninclude financial institutions, commercial banks and other private debenture holders. Now the \nReema Industries is looking to expand their business and for which they need further funds. Mr. \nRishi, the CEO of the company wants their senior management to prepare the report including \nratio analysis to be presented before investors.  The Balance Sheet and other financial \ninformation are shown below. \nLiabilities \n` Assets \n` \nShare Capital \n1,00,000 Fixed Assets  \n        1,70,000 \nLess: Depreciation          14,000 \n1,56,000 \nReserve and Surplus  \n80,000 Current Assets: \n \n9% Preference Share Capital \n20,000   Cash \n22,000 \n8% Debentures \n50,000   Investments \n25,000 \nCurrent Liabilities: \n   Sundry Debtors \n30,000 \n  Creditors \n10,000   Stock \n50,000 \n  Bills Payable \n15,000  \n \n  Outstanding Expenses \n5,000  \n \nProvision for Tax \n3,000  \n \n \n2,83,000  \n2,83,000 \nOther information:  \n1.  \nNet sales ` 1,00,000  \n2.  \nCost of goods sold ` 66,500  \n3.  \nNet income before tax ` 20,000  \n4.  \nAverage creditor days is 60 days. Assume 360 days in a year.  \n5.   \nTax rate 30% \nFrom the above financial information, Senior management asked you to calculate the following \nratio for their analysis: \n1. \nWhat is the Liquid ratio of the company?"}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2025_MTP_1_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "May_2025", "text": "(d)  \n3.84 times \n2. \nWhat is the Sales to Proprietary ratio and Interest coverage ratio of the company?"}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2025_MTP_1_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "May_2025", "text": "(d)  \n1.2 : 1 and 2.5 times  \n3. \nWhat is the Debtor and Creditor turnover ratio of the company?"}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2025_MTP_1_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "May_2025", "text": "(d)  \n2 times and 3 times \n4. \nWhat is the Working Capital Turnover ratio (based on sales) of the company?"}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2025_MTP_1_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "May_2025", "text": "(d)  \n7% \n(5 x 2 = 10 Marks) \n6.  \nZ Ltd.\u2019s operating income (before interest and tax) is ` 9,00,000.  The firm\u2019s cost of debt \nis 10 per cent and currently firm employs ` 30,00,000 of debt.  The overall cost of capital \nof firm is 12 per cent. What is the cost of equity."}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2025_MTP_1_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "May_2025", "text": "(d) \n12.5% \n(2 Marks) \n7.  \nA company operates at a production level of 1,000 units.  The contribution is ` 60 per \nunit, operating leverage is 6, and combined leverage is 24.  If tax rate is 30%, what would \nbe its earnings after tax?"}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2025_MTP_1_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "May_2025", "text": "(d) \n` 1,230 \n(2 Marks) \n8.  \nA Company issues ` 10,00,000, 12% debentures of ` 100 each.  The debentures are \nredeemable after the expiry of fixed period of 7 years.  The Company is in 35% tax \nbracket. Calculate the cost of debt after tax, if debentures are issued at 10% Premium."}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2025_MTP_1_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "May_2025", "text": "(d) \n6.07% \n(1 Mark) \nPART II \u2013 Descriptive Questions (35 Marks) \nQuestion No. 1 is compulsory. \nAttempt any two questions out of the remaining three questions."}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2025_MTP_1_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "May_2025", "text": "(a)  \nM Ltd. belongs to a risk class for which the capitalization rate is 12%. It has 40,000 \noutstanding shares and the current market price is ` 200. It expects a net profit of \n` 5,00,000 for the year and the Board is considering dividend of ` 10 per share. \n \nM Ltd. requires to raise ` 10,00,000 for an approved investment expenditure. \nILLUSTRATE, how the MM approach affects the value of M Ltd. if dividends are \npaid or not paid. \n(5 Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2025_MTP_1_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "May_2025", "text": "(b)  \nThe following information is available for Punyakalash Limited \nMargin of Safety \n0.40 \nFinancial Leverage \n1.50 \nDebt \n1,50,000 \nTax Rate \n25% \nEarnings Yield  \n12% \nInterest Rate (Post tax) \n9% \nMPS \nPV Ratio \n30% \nPREPARE Income statement and find out the number of equity shares. \n \n \n  (5 Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2025_MTP_1_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "May_2025", "text": "(c)  \nFrom the following information for financial year 2023-24,  \nFinancial Leverage (FL) = 4 \nP/V Ratio = 40% \nTax rate = 30% \nDepreciation (part of manufacturing overheads) = ` 10,000 \nPreference dividend is 15% of Operating Profit \nCash Breakeven Sales = ` 2,25,000  \nEquity Share Capital = ` 1,00,000 \nReserves & Surplus as on 31.03.2023 = ` 35637  \nParticulars \nAmount (`) \nSales \n ??? \n(-) Variable cost \n ??? \nContribution \n ??? \n(-) Fixed cost \n ??? \nEBIT \n ??? \n(-) Interest exp \n 57,400 \nEBT \n ??? \n(-) Tax \n ??? \nEAT \n ??? \n(-) Preference dividend \n ??? \nEarnings for equity shareholders \n ??? \nCALCULATE \u2013 \ni. \nComplete the Income statement for FY 2023-24 \nii. \nOperating Leverage & Combined Leverage \niii. \nPercentage change in EPS, if sales increase and decreases by 7%     \niv. \nCalculate Return on Equity Shareholders funds on 31.03.24           \nv. \nAmount of Debt, if post tax interest rate is 6.65%      \n (5 Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2025_MTP_1_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "May_2025", "text": "(a) \nQ Ltd. has the following capital structure at book-value as on 31st March 2024: \nParticulars \n(`) \nEquity share capital (10,00,000 shares) \n4,00,00,000 \n12% Preference shares \n80,00,000 \n11% Debentures \n2,00,00,000 \n \n6,80,00,000 \nThe equity shares of the company are sold for ` 400. It is expected that next year \nthe company will pay a dividend of ` 20 per equity share, which is expected to \ngrow by 5% p.a. forever. Assume a 30% corporate tax rate. \nRequired:"}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2025_MTP_1_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "May_2025", "text": "(i)  \nCOMPUTE weighted average cost of capital (WACC) of the company \nbased on the existing capital structure. \n(ii)  \nCOMPUTE the new WACC, if the company raises an additional ` 50 lakhs \ndebt by issuing 12% debentures. This would result in increasing the \nexpected equity dividend to ` 25 and leave the growth rate unchanged, but \nthe price of equity share will fall to ` 300 per share. \n(6 Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2025_MTP_1_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "May_2025", "text": "(b) \nABC Pvt. Ltd. is considering relaxing its present credit policy for accounts \nreceivable and is in the process of evaluating two proposed policies. Currently, \nthe company has annual credit sales of ` 50 lakhs and accounts receivable \nturnover ratio of 4 times a year. The current level of loss due to bad debts is  \n` 1,50,000. The company is required to give a return of 20% on the investment in \nnew accounts receivable. The company\u2019s variable costs are 70% of the selling \nprice. Given the following information, IDENTIFY which is the better policy? \n(Amount in `) \nParticulars \nPresent \nPolicy \nProposed \nPolicy 1 \nProposed \nPolicy 2 \nAnnual credit sales \n50,00,000 \n60,00,000 \n67,50,000 \nAccounts receivable turnover ratio \n4 times \n3 times \n2.4 times \nBad debt losses \n1,50,000 \n3,00,000 \n4,50,000 \n \n (4 Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2025_MTP_1_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "May_2025", "text": "(a)  \nPerfact Limited is considering a total investment of ` 27 lakhs. You are required \nto CALCULATE the level of earnings before interest and tax (EBIT) at which the \nEPS indifference point between the following financing alternatives will occur:"}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2025_MTP_1_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "May_2025", "text": "(i)  \nEquity share capital of ` 18,00,000 and 14% debentures of ` 9,00,000. \nOr \n(ii) \nEquity share capital of ` 15,00,000, 16% preference share capital of  \n` 5,00,000 and 14% debentures of ` 7,00,000. \nAssume the corporate tax rate is at 25% and par value of equity share is  \n` 10 in each case. Also CALCULATE the Financial Break-Even Point \n(FBEP) for both the plans. \n(3 Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2025_MTP_1_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "May_2025", "text": "(b)  \nMillenial Limited, a Quick commerce (Q-Comm) startup company engaged into the \nbusiness of deliveries is in a need of a delivery vehicles. The company is \nconsidering two different options \u2013  \nOption A - Buying a brand new 4 electric delivery vehicles that would cost  \n` 1,50,000 each with a GST of 5% not eligible for set off. Electric vehicles would \nbe eligible for a government subsidy of ` 20,000 each but only to be received at \nthe end of the year. The life of the delivery vehicle would be 10 years. Scrap value \nis to be considered at 10% on Gross cost. \nOption B \u2013 The other alternative is to buy the vehicles needed on a secondhand \nbasis for ` 1,00,000 each which will remain in service for a period of 5 years and \nafter 5 years company done capital work on the vehicles for ` 70,000 each after \nwhich they can be used for another 5 years. The scrap value of the spare parts \nreplaced at the end of 5 years would be ` 32,000 whereas at the end of the  \n10th year scrap value of vehicle would be ` 4,000 each. \nMillenial Limited\u2019s applicable both corporate tax rate and capital gain tax rate is at \n15% whereas the vehicles would be depreciated at 20% on WDV basis. The QComm delivery industry\u2019s average required rate of return is 15%. You are required \nto evaluate both the options and advise on the best one. \nThe revenue and cash expenses for the Q-comm company is expected at  \n` 15,00,000 p.a. and ` 10,00,000 p.a. respectively. \n(7 Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2025_MTP_1_Questions.pdf", "subject": "SM", "doc_type": "MTP", "attempt_period": "May_2025", "text": "1. \nThe question paper comprises two parts, Part I and Part II. \n2. \nPart I comprises case scenario based multiple choice questions (MCQs) \n3. \nPart II comprises questions which require descriptive answers. \nPART I \u2013 Case scenario based MCQs (15 Marks) \n1.  \n(A) \n(Compulsory) \nIn the bustling metropolis of Techville, a once small startup named Athena \nCorporation embarked on a journey that exemplified the essence of strategic \nmanagement. \nAthena Corporation began its journey as a manufacturer of cutting-edge tech \ngadgets. In the initial years, they classifide stakeholders based on their power and \ninterest. By nurturing important stakeholders like investors, and minimizing \nconflicts amongst them, the company-maintained stability. This strategic \nstakeholder analysis proved instrumental during the introduction and growth \nphases of their product life cycle. \nAs the product reached maturity, Athena Corporation faced the inevitable \nchallenges of saturation. However, they decided to innovate, investing heavily in \nresearch and development. Their commitment to value creation resulted in a \nseries of product enhancements, rekindling customer interest and extending the \nproduct \u2019s life cycle. \nThe company recognized the importance of distribution. They diversified their \ndistribution strategy, forging partnerships with global retailers and e-commerce \ngiants. This enabled them to reach a wider audience and adapt to changing market \nconditions, reinforcing their presence during the product decline phase. \nThe most significant obstacle Athena Corporation faced was existing big giants in \nthe tech industry. To combat this, they leveraged their brand \u2019s reputation and \nstrong distribution networks. Additionally, they initiated collaborations with smaller \nstartups, enhancing innovation and expanding their reach. \nTo enter new international markets, Athena Corporation conducted a further \ncomprehensive analysis. By using its strengths of branding, addressing not being \nable to manage costs, & capitalizing on opportunities for AI (Artificial Intelligence) \nand motivating its talented employees, it mitigated to an extent the threats of \ncompetition in the global markets. And so, it is safe to say that the next 10 years \nare going to be a defining moment in Athena Corps\u2019 life. \nBased on the above Case Scenario, answer the Multiple-Choice Questions."}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2025_MTP_1_Questions.pdf", "subject": "SM", "doc_type": "MTP", "attempt_period": "May_2025", "text": "(i)  \nHow did Athena Corporation effectively utilize Mendelow \u2019s Matrix to \nmanage stakeholders based on their power and interest, ensuring longterm stability and success?"}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2025_MTP_1_Questions.pdf", "subject": "SM", "doc_type": "MTP", "attempt_period": "May_2025", "text": "(d)  \nBy frequently changing their stakeholder classification to maintain \nflexibility. \n(2 Marks) \n(ii)  \nIn which specific phase of the product life cycle did Athena Corporation \ninvest significantly in research and development, resulting in a rejuvenation \nof their product offering?"}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2025_MTP_1_Questions.pdf", "subject": "SM", "doc_type": "MTP", "attempt_period": "May_2025", "text": "(d)  \nThe decline phase, to liquidate existing inventory. \n(2 Marks) \n(iii)  \nWhen it comes to diversifying their distribution strategy, what was the key \napproach adopted by Athena Corporation to reach a broader audience and \nadapt to changing market conditions?"}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2025_MTP_1_Questions.pdf", "subject": "SM", "doc_type": "MTP", "attempt_period": "May_2025", "text": "(d)  \nEstablishment of strong distribution networks with global retailers \nand e-commerce giants. \n(2 Marks) \n(iv)  \nWhat unique challenge did Athena Corporation face in the tech industry \nthat presented a significant barrier to entry?"}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2025_MTP_1_Questions.pdf", "subject": "SM", "doc_type": "MTP", "attempt_period": "May_2025", "text": "(v)  \nAthena Corporation conducted a comprehensive strategic analysis before \nexpanding globally. What specific framework did they employ?"}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2025_MTP_1_Questions.pdf", "subject": "SM", "doc_type": "MTP", "attempt_period": "May_2025", "text": "(i)  \nA retail chain notices that its competitors have introduced same-day \ndelivery options. In response, the company quickly adjusts its logistics \noperations and collaborates with local courier services to match the offering \nand avoid losing customers. What type of strategy is the company \nimplementing?"}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2025_MTP_1_Questions.pdf", "subject": "SM", "doc_type": "MTP", "attempt_period": "May_2025", "text": "(d) \nContingency strategy \n(2 Marks) \n(ii)  \nYou are the head of operations of a company. When you focus on total or \naggregate management functions in the sense of embracing the integrated \nactivities of a complete department et al, you are practicing: -"}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2025_MTP_1_Questions.pdf", "subject": "SM", "doc_type": "MTP", "attempt_period": "May_2025", "text": "(d) \nOperations Control \n(2 Marks) \n(iii)  \nWhich strategy is implemented after the failure of turnaround strategy?"}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2025_MTP_1_Questions.pdf", "subject": "SM", "doc_type": "MTP", "attempt_period": "May_2025", "text": "(d) \nGrowth strategy \n(1 Mark) \nPART II \u2013 Descriptive Questions (35 Marks) \nQuestion No. 1 is compulsory. \nAttempt any two questions out of the remaining three questions."}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2025_MTP_1_Questions.pdf", "subject": "SM", "doc_type": "MTP", "attempt_period": "May_2025", "text": "(a)  \nXYZ Enterprises operates in multiple industries. Its automobile division functions \nindependently, with separate teams for electric and fuel-based vehicles. The IT \ndivision follows a structure where employees report to both project heads and \ndepartment managers for various software projects. Meanwhile, its startup \nincubator encourages open collaboration among employees at all levels. Identify \nthe network relationships used in XYZ Enterprises\u2019 divisions and explain why they \nare appropriate. \n(5 Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2025_MTP_1_Questions.pdf", "subject": "SM", "doc_type": "MTP", "attempt_period": "May_2025", "text": "(b)  \nA Mumbai-based conglomerate, PQR Ltd., has announced a major restructuring \nof its business operations. The company has decided to split its business into four \nseparate units: Manufacturing, Retail, Services, and Technology. Each unit will \noperate as a separate business, with delegated responsibility for day-to-day \noperations and strategy to the respective unit managers. Identify the organization \nstructure that PQR Ltd. has planned to implement. Discuss any four attributes and \nthe benefits the firm may derive by using this organization structure. \n(5 Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2025_MTP_1_Questions.pdf", "subject": "SM", "doc_type": "MTP", "attempt_period": "May_2025", "text": "(c)  \nABC Fashion, a prominent brand in the domestic market, is now venturing into the \ninternational arena. As part of its global expansion strategy, the company is \nintroducing a variety of products tailored to meet the unique tastes and \npreferences of customers in different regions. By customizing its offerings for each \nmarket, ABC Fashion aims to capture a broader audience and establish a strong \ninternational presence. Which expansion strategy from Ansoff\u2019s Product-Market \nGrowth Matrix best aligns with ABC Fashion's approach? \n(5 Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2025_MTP_1_Questions.pdf", "subject": "SM", "doc_type": "MTP", "attempt_period": "May_2025", "text": "(a)  \nWhat are the key characteristics of business products that contribute to the overall \ncompetitiveness and dynamics of the market?       \n     (5 Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2025_MTP_1_Questions.pdf", "subject": "SM", "doc_type": "MTP", "attempt_period": "May_2025", "text": "(b)  \n\u2018A company's mission statement is typically focused on its present business \nscope.' Explain the significance of a mission statement. \n     (5 Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2025_MTP_1_Questions.pdf", "subject": "SM", "doc_type": "MTP", "attempt_period": "May_2025", "text": "(a)  \nA company has recently launched a new product in the market. Initially, it faced \nslow sales growth, limited markets, and high prices. However, over time, the \ndemand for the product expanded rapidly, prices fell, and competition increased. \nIdentify the stages of the product life cycle (PLC) that the company went through. \n \n(5 Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2025_MTP_1_Questions.pdf", "subject": "SM", "doc_type": "MTP", "attempt_period": "May_2025", "text": "(b)  \nThere are four specific criteria of sustainable competitive advantage that firms can \nuse to determine those capabilities that are known as core competencies. Explain. \nOR"}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2025_MTP_1_Questions.pdf", "subject": "SM", "doc_type": "MTP", "attempt_period": "May_2025", "text": "(b) \nHow can Mendelow's Matrix be used to analyze and manage the stakeholders \neffectively? \n(5 Marks)"}]

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+[{"source_file": "Inter_P6_FMSM_FM_SM_May_2025_MTP_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "May_2025", "text": "TimeAllowed\u20133Hours(Totaltimefor6Aand6B) \nMaximumMarks\u201350 \n1. \nThequestionpapercomprisestwoparts,PartIandPartII. \n2. \nPartIcomprisesCaseScenariobasedMultipleChoiceQuestions(MCQs) \n3. \nPartIIcomprisesquestionswhichrequiredescriptivetypeanswers. \n4. \nWorking note should form part of the answer. Wherever necessary, suitable assumptionsmay \nbe made by the candidates and disclosed by way of note. However, in answers to \nQuestions in Division A, working notes are not required. \nPARTI\u2013CaseScenariobasedMCQs(15Marks) \nWritethemostappropriateanswertoeachofthefollowingmultiplechoicequestionsby choosing one \nof the four options given. All questions are compulsory. \n \n \nCaseScenario \nAshrav Machines Private Limited (AMPL) was started as Joint venture company in 2017 by a \nleading group head quartered at Mumbai, engaged into the business of automatic washing \nmachineproductsegment.Thecompanyreceivedstate-of-the-arttechnologicalknow-howfrom \na \nwellknown Japanese company named Suzutsu Inc which was its JV partner. The company had \nacquired superior technology through JV, and its sales were expected to grow at 10 percent per \nannum. The Company has two types of customer base, retail customers and dealership \ncustomers.Thecompanyexperiencedasignificantgrowthinitssalesduringthefirst5yearsof its operations, \nand its actual growth rate averaged about 30 per cent per annum. The company had cost and \ntechnological advantages, and therefore, could keep its prices significantly lower as compared \nto its competitors. Over this period, the company established its name, and its products became \nwell-known in the market. \nAs the competition intensified in the washing machine market, and the general market slow- \ndownconditionsengulfedtheentireeconomy,AMPLstartedexperiencingadeclineinitssales \nfrom the beginning of FY 2022. The company identified poor inventory management on the \nretailfrontlikepilingupofinventorystocks,veryhighimportofrawmaterial,highsellingprice,etc.&poor \nreceivables management on the dealership front like poor credit policy& collection process, \nbad debts, etc. as a major issue causing financial problems and decline. The company decided to \nwork out a plan to reduce the inventory levels and rejig the receivables process and come out \nwith feasible solutions. The concerned leadership teams in the company presented the \nfollowing plans: \n(1) \nExploringsellingthewashingmachinesatdiscountedprice.Thecompanyplanstooffer \na5%averagediscountonitscurrentpricetherebyresultinginadiscountedpriceof \n`15,675 per machine. However, this didn\u2019t create any significant impact on sales as \nexpected. The previous studies on market behavior to price responses in this categoryof \nproduct suggested less sensitivity to price reduction or discounts in the lower range. \nHowever, a price reduction above 10 per cent indicated a significant association with the \nincrease in demand. Using these findings as the basis of their argument, the marketing \nteam proposed a plan to provide discounts of up to 12 per cent. It provided an estimateof \nabout 1,000 units to be sold every quarter during the year after implementing the \nsuggestion of proposed discount. \n(2) \nOwing to the recent trends observed in the exchange-sales scheme in the television andother \nelectronic segments, the company wants to explore this scheme for the washing \nmachine segment as well. Upon subsequent research, the marketing team argued that \nthere was a good chance of an exchange scheme becoming popular provided the \ncustomers were offered an attractive exchange scheme as most of the existing machines \nowned by the households did not have new features which the company\u2019s product \noffered. The marketing team gave an estimate of selling about 4,650 units in the nextone \nyear, provided the scheme offered, off-setting ` 3,000 to ` 4,000 of the prices to \ncustomerswhopurchasethe company\u2019sproductinexchangefortheirexistingmachines.The actual \ndeduction, however, would depend on the condition of the machines and for that, the \ncompany estimated that an average offset of ` 3,500 per machine would be needed. \n(3) \nThe third proposalpertainsto an all-round reduction in inventory levels. If the \nproductiontakesplaceasperthesalesplan,thetotalinventoryholdingperiodofthecompanyworks out \nabout3\u00bdmonths. Of this,thefinishedgoodsholdingperiodaloneis2 to2\u00bdmonths. The company, \ntherefore, must hold finished goods for this period to sell its products inthe market. \nRecently, due to a slow-down in the market, this period had increased to 4 \u2013 4\u00bd months. \nAs a result, the working capital requirements of the company have increased significantly. \nThe company recently explored the possibility of selling the goods to its customers under \na scheme which would deliver the machine after 1\u00bd months of placing \ntheorder.Apilottestwascarriedoutwithaselectgroupofcustomers.Basedonthe \nresults of this pilot study, the proposed scheme would offer the following package to a \ncustomer: on paying an advance of `3,000, the customer could order the product which \nwould be delivered after 1\u00bd months of time. As per the terms and conditions of the \nscheme, the customer would pay `9,500 at the time of delivery of the product. Through \nthis scheme,the customerwould geta benefit of `4,500 forthiswaitingperiod. Thefieldtestshad \nindicated that a section of customerswould not mind waiting for 1to 1\u00bd monthsand taking this \nbenefit. The marketing team gave an estimate that about 400 machines could be sold per \nmonth through this scheme. \n(4) \nThe current dealership sales of the company are `3,65,00,000 and it has a present \npolicy of extending 60 days credit but most of its dealers in the recent period have \nstretched payments and the average collection period was about 120 days. Ninety per \ncent of the firm\u2019s sales are on a credit basis. Out of this, 15 per cent is sold to the \ncustomers whose financial position is not very sound and the entire bad debt losses \namount to about 2 per cent of sales to these customers. The cost of Sales is 80% andthe \ncurrent collection expenses amount to`5,00,000 per year. After consulting the \nmarketingandaccountingstaffandanalyzingthestatusofthecompetition,thecompanyhas decided \nto change its credit policy for the dealership customers. \nPolicy A : To offer cash discount to motivate customers to pay early. The new credit \nterms would be \u201c2/15, net 60\u201d. A quick study of sample customers indicated that about \ntwo-thirds of them might like to avail cash discounts. This change in policy would not \nchange the expected sales, but the average collection period is likely to be reduced to80 \ndays for the remaining customers. There will be no changes in bad debts, but the \ncollection cost will be reduced by 30% to the existing collection expense. \nPolicy B : To relax its credit standards by 20 Days to expand its sales. This is expected \nto increase sales by 10 per cent. The marginal customers, which would also include new \ncustomers, are not expected to take advantage of cash discounts and are likely to \ncontinue to take on an average of 150 days to pay. In the case of these customers, bad \ndebt losses are expected to increase to 2.5 per cent on the sales to financially unsound \ncustomers, which will remain the same in proportion. The company would enforce \ncollections with more vigour and diligence. It is expected that collection expenses will \nincrease by ` 1,00,000 per annum. \nThe company generally requires a rate of return of 15 per cent from its investments and \nassume 360 days in a year. \nBasedontheabovescenario,answertothefollowingMCQs: \n1. \nIncrementalbenefitofadoptingcreditPolicyAtothecompanyis"}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2025_MTP_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "May_2025", "text": "(d) \n`2,31,444 \n3. \nEvaluate all the proposed options of inventory management and select the best \nsequence as per their rankings based on benefit analysis to the company in the \nform of sales."}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2025_MTP_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "May_2025", "text": "(d) \nProposal2&CreditPolicy\u2018A\u2019 \n(5x2=10Marks) \n6. \nMr. A is holding 2,00,000 shares of ABC Ltd. It is presently trading on NSE at cum \ndividend price of `100 per share. Mr. A has a policy to re-invest the amount \nofanydividendreceivedintothesharesofABCLtd.again.IfABCLtd.hasdeclared \na dividend of `20 per share, determine the no. of shares that Mr. A would holdafter \nhe invests dividend in the shares of ABC Ltd."}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2025_MTP_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "May_2025", "text": "(d) \n50,000 \n(2Marks) \n7. \nThe details of XYZ Ltd. are as follows: \nVariable Cost Ratio = 60% \nOperatingLeverage=5 \nCombined Leverage = 15 \nEBIT = ` 30,000 \nTaxRate=30% \nCalculatetheamountofinterest."}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2025_MTP_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "May_2025", "text": "(a)A firm can make investment in either of the following two projects. The firm \nanticipates its cost of capital to be 10%. The pre-tax cash flows of the projects for \nfive years are as follows: \n \nYear \n1 \n3 \n5 \nProjectA(`) \n(2,00,000) \n35,000 \n80,000 90,000 75,000 \n20,000 \nProjectB(`) \n(2,00,000) 2,18,000 \n10,000 10,000 \n4,000 \n3,000 \nIgnoreTaxation. \nAn amount of ` 35,000 will be spent on account of sales promotion in year 3 in \ncase of Project A. This has not been taken into account in calculation of pre-tax \ncash flows. \nThediscountfactorsareasunder: \n \nYear \n1 \n3 \n5 \nPVF(10%) \n0.91 \n0.83 \n0.75 \n0.68 \n0.62 \nYouarerequiredtoCALCULATEforeachproject:"}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2025_MTP_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "May_2025", "text": "(b) \nBhanu Limited has issued 50,000; 10% convertible bonds of ` 100 each with a \nmaturity period of 5 years. At the maturity, the bondholders will have an option to \nconvert the bonds into the equity shares in the ratio of 1:4 (i.e 4 equity shares for \neach debenture). The equity shares of Bhanu Limited are listed and are currently \ntraded at ` 30 each and historically the growth of the company\u2019s share has been \n5% per annum over the years. \nOf the total number of convertible bonds issued, 75% opt in for converting their \nbonds to the common stock at an agreed price which shall be at 5% premium to \nthe intrinsic price at that point in time. However, the investors need to hold the \nshares for at least 2 years from the date of conversion. \nThebalancebondswouldberedeemedbythecompanyatapremiumof25%with \na \nredemption cost of 2% incurred additionally at the time of redemption. Tax rate \napplicable to the company is at 25%. COMPUTE the cost of the convertible bonds \nusingApproximationMethodaswellastheYTMmethod. \n(5Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2025_MTP_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "May_2025", "text": "(c) \nCALCULATE the operating leverage, financial leverage and combined leverage \nfrom the following data under Situation I and II and Financial Plan A and B: \n \nInstalledCapacity \n4,000units \nActualProductionandSales \n75%oftheCapacity \nSellingPrice \n`30perunit \nVariableCost \n`15perunit \nFixedCost: \n \nUnderSituationI \n`15,000 \nUnderSituation-II \n`20,000 \nCapitalStructure: \n \nFinancialPlan \nA(`) \nB(`) \nEquity \n10,000 \n15,000 \nDebt(RateofInterestat20%) \n10,000 \n5,000 \n20,000 \n20,000 \n(5Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2025_MTP_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "May_2025", "text": "(i) \nANALYSEwhetherthecompanyisfollowinganoptimaldividendpolicy. \n(ii) \nCOMPUTE P/E ratio at which the dividend policy will have no effect on the \nvalue of the share. \n(iii) \nWillyourdecisionchangeiftheP/Eratiois8insteadof12.5?ANALYSE. \n(4Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2025_MTP_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "May_2025", "text": "(b) \nZordonLtd.hasnetoperatingincomeof`5,00,000andtotalcapitalizationof \n` 50,00,000 during the current year. The company is contemplating to introduce \ndebt financing in capital structure and has various options for the same. The \nfollowing information is available at different levels of debt value: \n \nDebtvalue \n(`) \nInterestrate(%) \nEquitycapitalizationrate(%) \n- \n10.00 \n5,00,000 \n6.0 \n10.50 \n10,00,000 \n6.0 \n11.00 \n15,00,000 \n6.2 \n11.30 \n20,00,000 \n7.0 \n12.40 \n25,00,000 \n7.5 \n13.50 \n30,00,000 \n8.0 \n16.00 \nAssuming no tax and that the firm always maintains books at book values, you are \nREQUIRED to calculate:"}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2025_MTP_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "May_2025", "text": "(a) \nFollowinginformationandratiosaregiveninrespectofSimandharLimitedfortheyear ended \n31.03.2025: \n \nParticulars \nRatio \nLiquidRatio \n2.0 \nCashAssetRatio \n0.36 \nCurrentRatio \n3.50 \nReceivablesCollectionPeriod \n30days \nProprietaryRatio \n0.72 \nEquityDividend \n`2,50,000 \nEquityDividendCoverageRatio \n2.10 \nNon-CurrentAssetsturnoverRatio \n0.80 \nEPS \n`3.0pershare \nStockTurnoverRatio \n6.0times \nGPRatio \n1/5thofSales \nAssume360daysinayear.Closinginventoryis20%morethanopening inventory. \nYouarerequiredtoCOMPLETEtheBalanceSheetasof31stMarch,2025. \nBALANCESHEET \nAson31stMarch,2025 \n \nLiabilities \nAmount` Assets \nAmount` \nEquity Share Capital \n(Face Value ` 10) \n??? FixedAssets \n??? \nReserves \n??? Receivables \n??? \nLongtermDebentures \n??? Inventory \n??? \nCurrentLiabilities \n2,80,000 Cash&Bankbalance \n??? \nShorttermadvances \n??? \nTotal \n???? Total \n???? \n(8Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2025_MTP_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "May_2025", "text": "(c) \nEXPLAINinbrieftheconceptofOverCapitalisation. \n(2Marks) \nPAPER6B:STRATEGICMANAGEMENT \n1. \nThequestionpapercomprisestwoparts,PartIandPartII. \n2. \nPartIcomprisescasescenariobasedmultiplechoicequestions(MCQs) \n3. \nPartIIcomprisesquestionswhichrequiredescriptiveanswers. \n \nPARTI\u2013CasescenariobasedMCQs(15Marks) \n1. \n(A) \n(Compulsory) \nFounded with a dream to bring the world's finest spices to kitchens worldwide, \nRachini Group has evolved into a diversified conglomerate, spanning industries \nfrom spices to car dealerships and real estate. This case study delves into the \njourney of Rachini Group. \nRachiniGroup'sclearobjectivefromitsinceptionwastobecomealeadingplayer in the spice \ntrade industry. They aimed to source, package, and distribute the highest quality \nspices to homes and businesses globally. This unwavering focus on quality and \ncustomer satisfaction allowed them to establish themselves as a trusted brand, \ndefining their path to success. The company, under the strict stewardship of \nMangat Singh, emphasized quality control, adherence to core values, and a \ndisciplined approach to business. While this management style limited creativity \nwithin middle management, it ensured consistency and quality throughout the \norganization, especially in their core spice business. \nRecognizingthepotentialforgrowthandvalueaddition,RachiniGroupexpanded \nby \ninvesting in acquiring spice farms and processing facilities, ensuring a robust \nsupply chain. This allowed them to control quality and costs, creating a significant \ncompetitive advantage. As a result of their expansion and diversification, Rachini \nGroup began generating positive cash flows. These financial gains provided the \nnecessary resources for further expansion and allowed the company to venture \nbeyond its spice business. \nIn their quest for expansion, Rachini Group forged strategic partnerships and \nalliances with influential politicians and royal families in Arabia. These connections \nprovided valuable insights, eased market entry, and facilitated regulatory \napprovals, giving the company a competitive edge. The group diversified intoother \nsectors like car dealerships and real estate, seeking to tap into lucrative markets \nand reduce dependency on a single industry. \nDespite their success, Rachini Group faced backlash from social groups who \nbelieved that the concentration of wealth in the hands of a few was dangerous for \nsociety. They were accused of worsening income inequality. This criticism \nprompted the company to reevaluate its approach and consider the broader \nimpact of its business activities. In response, the family-owned business initiateda \nphilanthropic arm, focusing on improving the living conditions, education, and \nhealthcare in the communities they operated. This philanthropic endeavor aimed \nto balance their business success with social responsibility, nurturing a more \npositive image and addressing the criticisms they faced. \nRachini Group continues to thrive with a remarkable compound annual growth rate \n(CAGR) of 12%. Their diversified business portfolio, including car dealerships andreal \nestate, now constitutes 40% of their total group revenue. The company \nremains committed to its spice trade roots while exploring new opportunities. Their \nplantogopublic in2026is atestamenttotheirambitionanddeterminationto remain \na key player in the global business landscape. \nRachini Group's remarkable evolution serves as a compelling case study in the \nworld of business, showcasing the power of clear objectives, and adaptability in \nthe face of social challenges. As they move towards their IPO in 2026, they \ncontinue to be a fascinating story of business success with a commitment to the \ngreater good. \nBasedontheaboveCaseScenario,answertheMultiple-ChoiceQuestions."}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2025_MTP_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "May_2025", "text": "(d) \nBycuttingprices-BestCostProviderStrategy \n(2 Marks) \n(ii) \nRachini Group\u2019s emphasis on acquiring spice farms and processing \nfacilities to gain supply chain control aligns with which \u2018S\u2019 in McKinsey\u2019s 7S \nFramework?"}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2025_MTP_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "May_2025", "text": "(d) \nByincreasingtheirworkforce \n(2Marks) \n(iv) \nThe strategic alliances with royal families and politicians most likely helped \nRachini Group reduce the threat of:"}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2025_MTP_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "May_2025", "text": "(i) \nA multinational corporation is debating whether to invest significant time \nand resources into developing a new strategic plan. Some argue it diverts \nattention from current operations, while others believe it is essential for \nlong-term success. Despite being resource-intensive, it remains crucial for \nsustained growth. What does this situation best illustrate?"}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2025_MTP_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "May_2025", "text": "(d) \nShort-termfocusleadstolong-termsuccess \n(2Marks) \n(ii) \nA group of environmental activists consistently raises concerns about a \ncompany'senvironmental impact.While their opinionsareacknowledged,they \nlack the authority to directly influence company decisions. The \ncompanymonitorstheirconcernsandengageswiththemwhennecessary \ntomaintainitsreputation.WhichquadrantofMendelow\u2019sMatrixbest categorizes \nthese stakeholders?"}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2025_MTP_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "May_2025", "text": "(d) \nLowInterest,HighPower \n(2Marks) \n(iii) \nABC Corp., a pharmaceutical company, faces strict regulatory approvals \nbefore launching a new drug. Meanwhile, government policies promote \nlocal drug manufacturing, and digital advancements are transforming \nresearch. Which PESTLE factor is most relevant to the regulatory \napprovals for new drugs?"}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2025_MTP_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "May_2025", "text": "(a)ABC Tech, aleading smartphone manufacturer, is navigating ahighly competitive \nmarketwhereinnovationandcostefficiencyarekey.Customersprioritizebatterylife, camera \nquality, \nand \nseamless \nsoftware \nintegration \nwhen \nchoosing \na \nbrand.Tostayahead,ABCTechinvestsheavilyinresearchanddevelopment,optimizes \nits \nsupply chain for cost-effective production, and enhances customer service. \nIdentify the Key Success Factors (KSFs) for ABC Tech based on the industry \nconditions described. How can the company achieve a sustainable competitive \nadvantagebyleveragingthesefactors? \n(5Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2025_MTP_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "May_2025", "text": "(b) \nEcoTrend, a growing e-commerce company, competes with industry giants by \noffering premium, eco-friendly products at high prices, targeting environmentally \nconscious consumers. Meanwhile, its competitor,BudgetBazaar, focuses on \nproviding the lowest prices by optimizing costs and streamlining operations. \nAnother player,VogueVista, differentiates itself through exclusive, fashion- \nforwarddesignsthatattracttrend-savvycustomers.Identifythegenericstrategies \nused byEcoTrend, BudgetBazaar, andVogueVista based on Michael Porter\u2019s \nGeneric Strategies framework. Explain how each company gains a competitive \nadvantage. \n(5Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2025_MTP_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "May_2025", "text": "(c) \nNexora Innovations, a mid-sized IT services firm, decided to implement a cloud- \nbased project management system to enhance collaboration and streamline \noperations. However, many employees resisted the shift, fearing job redundanciesand \nstruggling to adapt to the new system. Despite initial communication, \nproductivity dipped, and frustration grew among staff. What key change \nmanagement strategies shouldNexora Innovationsadopt to ensure a smooth \ndigitaltransformationandminimizedisruption? \n(5Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2025_MTP_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "May_2025", "text": "(a)NovaTechPvt.Ltd.isawell-establishededucationaltechnology(EdTech)company in the \nIndia. The company has been performing well in the online learning industry.The \nmanagement of NovaTech Pvt. Ltd. has now decided to expand its business by \nlaunching a luxury skincare brand named\"GlowNova.\" Identify and explain the \ngrowthstrategyadoptedbyNovaTechPvt.Ltd. \n(5Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2025_MTP_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "May_2025", "text": "(b) \nAarav is planning to launch his new organic food brand. He is evaluating differentcities \nacross the country to establish his business in the most suitable environment. \nOne promising option is Pune, a city known for its health-conscious consumers, \nstrong distribution networks, and government initiatives supporting sustainable \nbusinesses. With favorable policies, tax benefits, and access to experienced \nmentors, Pune seems like an ideal choice for Aarav to launch and \nscalehisorganicfoodbrandsuccessfully.DefinethetermBusinessEnvironmentwith \nrespect to the above scenario. Explain how a business's interaction with its \nenvironment can contribute to the development of a successful strategy. \n(5Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2025_MTP_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "May_2025", "text": "(b) \nWhat is a strategic vision, and what are the essential components that make it an \neffective tool for guiding an organization's future? \nOR \nDistinguishbetweenVisionandMission. \n(5Marks)"}]

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+[{"source_file": "Inter_P6_FMSM_FM_SM_May_2026_MTP_Series_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "May_2026", "text": "Time Allowed \u2013 3 Hours (Total time for 6A and 6B)  Maximum Marks \u2013 50 \n1. The question paper comprises two parts, Part I and Part II. \n2. Part I comprises Case Scenario based Multiple Choice Questions (MCQs) \n3. Part II comprises questions which require descriptive type answers. \n4. Working note should form part of the answer. Wherever necessary, suitable assumptions \nmay be made by the candidates and disclosed by way of note. However, in answers to \nQuestions in Division A, working notes are not required. \nPART I \u2013 Case Scenario based MCQs (15 Marks) \nWrite the most appropriate answer to each of the following multiple choice questions by \nchoosing one of the four options given. All questions are compulsory.  \nCase Scenario  \nOrion Manufacturing Ltd., a mid-sized engineering company, is facing increasing competition \nand rising labour costs. To improve efficiency and reduce dependency on manual labour, the \nmanagement is considering automating a part of its production process. \nAfter preliminary research, the company has shortlisted two advanced machines: Model X-Pro \nand Model Z-Elite. Both machines can perform the same operations currently handled by \nworkers, but differ in cost and efficiency levels. \nThe finance team has gathered the following data to evaluate the investment decision. \nParticulars \nModel XPro  \nModel ZElite  \nCost of Machine \n \n \n \n \n \n \n(`) 20,00,000 \n25,00,000 \nEstimated working life \n \n5 years \n5 years \nEstimated saving in direct wages per annum  \n \n \n(`) \n7,00,000 \n9,00,000 \nDownloaded From www.castudynotes.com \nJoin Us on Telegram http://t.me/canotes_ipcc\nEstimated saving in scrap per annum \n \n \n \n(`) \n60,000 \n1,00,000 \nEstimated additional cost of indirect material per annum \n(`) \n30,000 \n90,000 \nEstimated additional cost of indirect labour per annum  \n(`) \n40,000 \n50,000 \nEstimated additional cost of repairs and maintenance  \n45,000 \n85,000 \nDepreciation will be charged on a straight line method. Corporate tax rate is 30 percent and \nexpected rate of return may be 12 percent. \nYou are being the finance manager of the company required to analyse both the machine in \nrelation to financial details and answer the following questions (MCQ 1 to 5) \n1.  \nPay-back Period of Machine Model X-Pro is: \n(A)  \n2.55 years \n(B)  \n3 years \n(C)  \n3.50 years \n(D)  \n4 years \n2.  \nPay-back Period of Machine Model Z-Elite is: \n(A)  \n2 years \n(B)  \n2.52 years \n(C)  \n3 years \n(D)  \n3.61 Years \n3.  \nAccounting (Average) Rate of Return (ARR) on the basis of average investment is: \n(A)  \nX-Pro: 17.15%, Z-Elite: 15.40% \n(B)  \nX-Pro: 16%, Z-Elite: 18.2% \n(C)  \nX-Pro: 18.2%, Z-Elite: 20% \n(D)  \nX-Pro: 20%, Z-Elite: 22.16% \n4.  \nProfitability Index (P.V. Index) of Model X-Pro is: \n(A)  \n1.05 \n(B)  \n1.10 \n(C)  \n1.03 \n(D)  \n1.20 \nDownloaded From www.castudynotes.com \nJoin Us on Telegram http://t.me/canotes_ipcc\n5.  \nProfitability Index (P.V. Index) of Model Z-Elite is: \n(A)  \n1.02 \n(B)  \n1.08 \n(C)  \n1.12 \n(D)  \n1.00   \n(5 x 2 = 10 Marks)  \n6.  \nThe shares of Ritik Ltd. are presently traded at ` 64 and the company is expected to \npay dividends of ` 6 per share with a growth rate expected at 12% per annum. It plans \nto raise fresh equity share capital. The merchant banker has suggested that an \nunderpricing of ` 3 is necessary in pricing the new issue besides involving a cost of ` 1 \nper share on miscellaneous expenses. The cost of new equity shares (assuming no \nchange in dividend rate and growth rate) will be:  \n(A)  \n18%  \n(B)  \n17.5%  \n(C)  \n20.25%  \n(D)  \n22% \n (2 Marks)  \n7. \nX Ltd. is considering the following two alternative financing plans: \n \nPlan \u2013 I (`)  \nPlan \u2013 II (`)  \nEquity shares of ` 10 each  \n4,00,000 \n4,00,000 \n12% Debentures  \n2,00,000 \n- \nPreference Shares of ` 100 each  \n- \n2,00,000 \n \n \n6,00,000  \n6,00,000  \n \nThe indifference point between the plans is ` 2,40,000. Corporate tax rate is 30%.  \n \nWhat is the dividend on preference shares: \n(A)  \n` 16,800 \n(B)  \n` 25,000 \n(C)  \n` 36,600 \n(D) \n` 10,200 \n(2 Marks)  \n \nDownloaded From www.castudynotes.com \nJoin Us on Telegram http://t.me/canotes_ipcc\n8. \nThe following information is provided by the DVP Ltd. for the year ending 31st March, \n2025. \nRaw Material storage period \n \n \n50 days \nWork in progress conversion period \n \n18 days \nFinished Goods storage period \n \n \n22 days \nDebt Collection period \n \n \n \n45 days \nCreditors' payment period  \n \n \n55 days \nNumber of Operating Cycle in a Year (360 days) of DVP Ltd is: \n(A)  \n4.50 \n(B)  \n3.10 \n(C)  \n4.25 \n(D)  \n2.20  \n (1 Mark)  \nPART II \u2013 Descriptive Questions (35 Marks) \nQuestion No. 1 is compulsory. \nAttempt any two questions out of the remaining three questions."}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2026_MTP_Series_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "May_2026", "text": "(a)  \nDCF Limited has its Earnings Before Interest and Taxes (EBIT) of ` 60,00,000. \nThe company is evaluating options to introduce debt financing in its capital \nstructure. Following information are related to various options of debt financing \nin the capital structure: \nOption \nDebt in capital structure \nCost of debt \n(Kd) \nCost of equity \n(Ke) \n` 60,00,000 \n10% \n12% \n` 75,00,000 \n13% \n15% \n` 90,00,000 \n14% \n16% \n` 1,05,00,000 \n14% \n16% \n \nAssuming that the company operates in zero tax regime. \n \nWHICH option of debt financing in the capital structure would you recommend as \nper Traditional Approach of the capital structure theory?  \n (5 Marks)  \nDownloaded From www.castudynotes.com \nJoin Us on Telegram http://t.me/canotes_ipcc"}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2026_MTP_Series_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "May_2026", "text": "(b)  \nZenith Manufacturing Ltd., a mid-sized production company, is currently \nreviewing the impact of its capital structure on profitability and risk. The \ncompany has financed its operations through a mix of equity and debt. \n \nThe capital structure of Zenith Manufacturing Ltd. consists of: \n\u2022 \nEquity share capital of ` 15,00,000 (shares of ` 100 each), and  \n\u2022 \n10% debentures amounting to ` 15,00,000.  \n \nDuring the current financial year, the company experienced a 20% increase in \nsales volume, rising from 1,50,000 units to 1,80,000 units. The management is \ninterested in understanding how this increase in activity level affects earnings \nand leverage. The selling price is ` 15 per unit, variable costs amount to ` 8 per \nunit and fixed expenses amount to ` 3,00,000. The income tax rate is assumed \nto be 30 per cent. \n(I) \nYou are required to CALCULATE the following:"}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2026_MTP_Series_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "May_2026", "text": "(i) \nThe percentage increase in earnings per share. \n(ii) \nThe degree of financial leverage at 1,50,000 units and 1,80,000 \nunits. \n(iii) \nThe degree of operating leverage at 1,50,000 units and 1,80,000 \nunits. \n(II) \nCOMMENT on the behaviour of operating and financial leverage in relation \nto increase of production from 1,50,000 to 1,80,000 units. \n(5 Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2026_MTP_Series_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "May_2026", "text": "(c) \nPQR Limited has the following Balance Sheets as on March 31, 2026 and           \nMarch 31, 2025: \nBalance Sheet \n \n` in lakhs \n \nMarch 31, 2026 \nMarch 31, 2025 \nSources of Funds: \n \n \n \nShareholders Funds \n2,377 \n1,472 \n \nLoan Funds \n3,570 \n3,083 \n \n5,947 \n4,555 \nApplications of Funds: \n \n \n \nFixed Assets \n3,466 \n2,900 \n \nCash and bank \n470 \nDownloaded From www.castudynotes.com \nJoin Us on Telegram http://t.me/canotes_ipcc\nDebtors \n1,495 \n1,168 \n \nStock \n2,867 \n2,407 \n \nOther Current Assets \n1,567 \n1,404 \nLess: Current Liabilities \n(3,937) \n(3,794) \n \n  5,947 \n  4,555 \nThe Income Statement of the PQR Ltd. for the year ended is as follows: \n \n` in lakhs \n \nMarch 31, 2026 March 31, 2025 \nSales \n22,165 \n13,882 \nLess: Cost of Goods sold \n20,860 \n12,544 \n \nGross Profit \n1,305 \n1,338 \nLess: \nSelling, \nGeneral \nand \nAdministrative expenses \n1,135 \nEarnings before Interest and Tax (EBIT) \n  586 \nInterest Expense \n  105 \nProfits before Tax \n  481 \nTax \n  192 \nProfits after Tax (PAT) \n 289 \nCALCULATE for the year 2025-26:"}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2026_MTP_Series_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "May_2026", "text": "(i) \nInventory turnover ratio \n(ii) \nFinancial Leverage \n(iii) \nReturn on Capital Employed (ROCE) \n(iv) \nReturn on Equity (ROE)"}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2026_MTP_Series_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "May_2026", "text": "(a) \nA company is in the process of finalising its financial strategy for the upcoming \nyear, with a particular focus on balancing profitability and liquidity through its \nworking capital policies. The management anticipates that the level of \ninvestment in current assets \u2014 especially inventories and receivables (book \ndebts) will have a direct impact on sales volume and, consequently, on Earnings \nBefore Interest and Tax (EBIT). \nDownloaded From www.castudynotes.com \nJoin Us on Telegram http://t.me/canotes_ipcc\nFor the next financial year, the company has projected its investment in fixed \nassets at ` 2.60 crore, while current liabilities are expected to stand at ` 2.34 \ncrore. With these baseline estimates in place, the company must decide how \naggressively or conservatively it should invest in current assets. \n \nThe Financial Controller has been tasked with evaluating alternative working \ncapital policies. Each policy represents a different level of investment in current \nassets, which in turn affects sales potential, operating efficiency, risk exposure, \nand profitability. A higher investment in inventories and receivables may support \nincreased sales and improved customer service but could also lead to higher \ncarrying costs and risk of obsolescence or bad debts. On the other hand, a more \nconservative approach may reduce costs and risks but could constrain sales \ngrowth and customer satisfaction. \n \nIn this context, the Financial Controller is analysing various scenarios of working \ncapital investment (expressed in ` crore), comparing their impact on sales, \nEBIT, and overall financial performance. The objective is to identify an optimal \npolicy that strikes a balance between risk and return while ensuring adequate \nliquidity for smooth business operations. \nWorking capital \npolicy \nInvestment in current \nassets \nEstimated \nsales \nEBIT \nConservative \n4.50 \n12.30 \n1.23 \nModerate \n3.90 \n11.50 \n1.15 \nAggressive \n2.60 \n10.00 \n1.00 \n \nAfter evaluating the working capital policy, the financial controller has advised \nthe adoption of the moderate working capital policy. The company is now \nexamining the use of long-term and short-term borrowings for financing its \nassets. The company will use ` 2.50 crore of the equity funds. The corporate tax \nrate is 35 per cent. The company is considering the following debt alternatives: \nFinancing Policy \nShort-term debt \nLong-term debt \nConservative \n0.54 \n1.12 \nModerate \n1.00 \n0.66 \nAggressive \n1.50 \n0.16 \nInterest rate-Average (%) \n16 \n \nDownloaded From www.castudynotes.com \nJoin Us on Telegram http://t.me/canotes_ipcc\nRequired:  \n(1)  \nWorking capital investment for each policy. (a) Net working capital \nposition, (b) Rate of return, and (c) Current ratio \n(2)  \nFinancing for each policy. (a) Net working capital position, (b) Rate of \nreturn on shareholder equity, and (c) Current ratio \n(8 Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2026_MTP_Series_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "May_2026", "text": "(a)  \nThe capital structure of RST Ltd., as at 31st March, 2025, is as under: \n \n \n \n \n \n \n \n \n \n` \nEquity Share Capital (` 100 each)  \n \n \n6,00,00,000 \n10% Cumulative Preference Shares (` 100 each) \n2,00,00,000 \n12% Debentures \n \n \n \n \n \n8,00,00,000 \nRetained Earnings  \n \n \n \n \n4,00,00,000 \n \nThe equity shares are traded in the market and current market price of the share \nis ` 150 per share. The market value of preference share is ` 120 each. Market \nvalue of debentures is ` 8,60,00,000. \n \nFor the year ended on 31st March, 2025, the company has paid equity dividend \n@24% and anticipates that it will grow by 5% every year. The tax rate applicable \nto the company is 25%. \n \nYou are required to COMPUTE:"}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2026_MTP_Series_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "May_2026", "text": "(i)  \nCost of capital of each source of finance for the company. \n(ii)  \nWeighted Average Cost of Capital (WACC) on the basis of book value \nweights. \n(iii)  \nWeighted Average Cost of Capital (WACC) based on market value \nweights. \n (7 Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2026_MTP_Series_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "May_2026", "text": "(b) \nVista Limited's retained earnings per share for the year ending 31.03.2023 being \n40% is ` 3.60 per share. Company is foreseeing a growth rate of 10% per \nannum in the next two years. After that the growth rate is expected to stabilize at \n8% per annum. Company will maintain its existing pay-out ratio. If the investor's \nrequired rate of return is 15%, CALCULATE the intrinsic value per share as of \ndate using Dividend Discount model.  \n(3 Marks) \nDownloaded From www.castudynotes.com \nJoin Us on Telegram http://t.me/canotes_ipcc"}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2026_MTP_Series_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "May_2026", "text": "(a)  \nDISCUSS the features of international funding and angel financing in the context \nof corporate financing. \n (4 Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2026_MTP_Series_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "May_2026", "text": "(b)  \n\"The treasury department of a business concern has evolved its importance over \nthe years from being responsible for only cash handling issues to technical \nareas revolving around hedging forex risks and composition of capital structure.\" \nIn the light of this statement, EXPLAIN briefly the fundamental tasks for which \ntreasury department is responsible. \n(4 Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2026_MTP_Series_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "May_2026", "text": "(c)  \nDISCUSS the dividend-price approach, and earnings price approach to estimate \ncost of equity capital.  \n(2 Marks)  \nOR"}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2026_MTP_Series_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "May_2026", "text": "(c)  \n\u201cOperating risk is associated with cost structure, whereas financial risk is \nassociated with capital structure of a business concern.\u201d Critically EXAMINE this \nstatement.  \n(2 Marks)  \n \nDownloaded From www.castudynotes.com \nJoin Us on Telegram http://t.me/canotes_ipcc"}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2026_MTP_Series_2_Questions.pdf", "subject": "SM", "doc_type": "MTP", "attempt_period": "May_2026", "text": "1. \nThe question paper comprises two parts, Part I and Part II. \n2. \nPart I comprises case scenario based multiple choice questions (MCQs) \n3. \nPart II comprises questions which require descriptive answers. \nPART I \u2013 Case scenario based MCQs (15 Marks) \n1. (A) (Compulsory) \n1.  \n(A)  \nInnovateCo, a $4 billion multinational company headquartered in London, \noperates as a diversified conglomerate, with its primary business segments in \nconsumer electronics, home appliances, and electric vehicles (EVs). Known for \nits relentless focus on cost efficiency and innovation, InnovateCo faces a unique \nchallenge: balancing its portfolio of business units while optimizing its internal \nprocesses to enhance profitability. \n \nAt the core of InnovateCo \u2019s strategy is its reliance on the BCG Matrix to classify \nits business units. The consumer electronics division, with a market share of 25% \nin a growing industry, is classified as a  \u201cStar.\u201d On the other hand, its home \nappliances unit\u2014a mature market segment with steady cash flow but low growth \npotential\u2014is considered a  \u201cCash Cow,\u201d generating $500 million annually in \nprofits. However, InnovateCo \u2019s leadership recognizes contradictions when using \nthe ADL Matrix alongside the BCG Matrix. For example, while the EV division is \nseen as a  \u201cQuestion Mark\u201d under BCG (due to low current market share), it is \nlabeled as  \u201cDominant\u201d under ADL due to its strong industry position and \ntechnological leadership. This mismatch has led the management to reconsider \nresource allocation decisions. \n \nPublic perception of InnovateCo \u2019s brand plays a crucial role in its success. Using \nMendelow \u2019s Matrix, the company has identified media outlets and advocacy \ngroups as high-power, high-interest stakeholders, prompting the development of \na robust PR strategy. For example, InnovateCo recently launched a sustainability \nreport that highlights its commitment to reducing its carbon footprint by 40% by \n2030, earning positive coverage in influential publications. \n \nInternally, InnovateCo has adopted a lean functional structure to improve \ncommunication and decision-making. With this approach, cross-departmental \ncoordination between R&D, marketing, and supply chain teams has accelerated \nproduct development cycles by 20%. The lean structure also reduces \nbureaucracy, ensuring quicker responses to market changes. \nDownloaded From www.castudynotes.com \nJoin Us on Telegram http://t.me/canotes_ipcc\nIn terms of competitive positioning, InnovateCo follows a cost leadership strategy \nwith a twist. Leveraging its significant bargaining power with suppliers, the \ncompany achieves economies of scale while maintaining high-quality standards. \nFor example, by negotiating bulk raw material purchases, InnovateCo cut \nproduction costs for its EV batteries by 15%, allowing it to offer competitive pricing \nwithout sacrificing profitability. \n \nLastly, InnovateCo has fully embraced e-commerce as its primary distribution \nchannel. Its online platform generated $1.2 billion in revenue last year, driven by \nAI-powered recommendations and a seamless user experience. This channel not \nonly reduces intermediary costs but also provides InnovateCo with direct access \nto valuable consumer data, enhancing its ability to personalize offerings. \n \nWith a focus on streamlining operations, leveraging digital platforms, and refining \nits strategic frameworks, InnovateCo aims to increase profitability by 12% \nannually. However, challenges like reconciling strategic contradictions and \nmaintaining stakeholder alignment remain key hurdles for the company. \nBased on the above Case Scenario, answer the Multiple-Choice Questions."}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2026_MTP_Series_2_Questions.pdf", "subject": "SM", "doc_type": "MTP", "attempt_period": "May_2026", "text": "(d) \nBy acting as the primary driver of revenue  \n(2 Marks) \n(ii)  \nWhat contradiction does InnovateCo face when using both the BCG and \nADL Matrices?"}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2026_MTP_Series_2_Questions.pdf", "subject": "SM", "doc_type": "MTP", "attempt_period": "May_2026", "text": "(d) \nThe ADL Matrix undervalues the contribution of \"Stars.\"  (2 Marks) \n(iii)  \nHow does Mendelow \u2019s Matrix influence InnovateCo \u2019s PR strategy?"}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2026_MTP_Series_2_Questions.pdf", "subject": "SM", "doc_type": "MTP", "attempt_period": "May_2026", "text": "(a) \nBy identifying suppliers as high-power, low-interest stakeholders. \nDownloaded From www.castudynotes.com \nJoin Us on Telegram http://t.me/canotes_ipcc"}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2026_MTP_Series_2_Questions.pdf", "subject": "SM", "doc_type": "MTP", "attempt_period": "May_2026", "text": "(d) \nBy directing resources toward low-power stakeholders.   (2 Marks) \n(iv)  \nWhat is the key benefit of InnovateCo \u2019s lean functional structure?"}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2026_MTP_Series_2_Questions.pdf", "subject": "SM", "doc_type": "MTP", "attempt_period": "May_2026", "text": "(i)  \nA small e-commerce startup is entering a highly competitive online retail \nmarket. The market is dominated by a few large players with significant \nmarket share. Which of the following forces is most likely to impact the \nstartup's ability to compete effectively?"}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2026_MTP_Series_2_Questions.pdf", "subject": "SM", "doc_type": "MTP", "attempt_period": "May_2026", "text": "(d) \nRivalry among existing competitors  \n(2 Marks) \n(ii)  \nA renewable energy company states: \u201cWe aim to lead the global transition \ntowards 100% clean energy in the next 20 years.\u201d  However, its current \nactivities are limited to installing solar panels in one region. This statement \nprimarily represents:"}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2026_MTP_Series_2_Questions.pdf", "subject": "SM", "doc_type": "MTP", "attempt_period": "May_2026", "text": "(d) \nFunctional strategy \n(2 Marks) \n(iii)  \nWhat is the primary role of strategic management in achieving \norganizational goals?"}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2026_MTP_Series_2_Questions.pdf", "subject": "SM", "doc_type": "MTP", "attempt_period": "May_2026", "text": "(d) \nTo focus solely on short-term gains \n(1 Mark) \n \nPART II \u2013 Descriptive Questions (35 Marks) \nQuestion No. 1 is compulsory. \nAttempt any two questions out of the remaining three questions."}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2026_MTP_Series_2_Questions.pdf", "subject": "SM", "doc_type": "MTP", "attempt_period": "May_2026", "text": "(a)  \nXYZ Pharmaceuticals plans to launch a new line of affordable medicines. The top \nmanagement defines long-term expansion plans, while different product divisions \nsuch as generics and specialty drugs operate independently under separate \ndivision heads. Each division has its own functional teams like marketing, HR and \nproduction reporting to respective heads. Recently, the company has also started \nforming cross functional teams for new product launches where employees report \nto more than one manager. In this context, identify and explain the different types \nof network relationships existing in the organisation and briefly comment on their \nsuitability. \n(5 Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2026_MTP_Series_2_Questions.pdf", "subject": "SM", "doc_type": "MTP", "attempt_period": "May_2026", "text": "(b)  \nSuraj Prakash and Chander Prakash are two brothers engaged in the business of \nspices. Both have different approaches to management. Suraj Prakash prefers \nthe conventional and formal approach in which authority is used for explicit \nrewards and punishment. While, on the other hand, Chander Prakash believes in \ndemocratic participative management approach, involving employees to give their \nbest. Analyse the leadership style followed by Suraj Prakash and Chander \nPrakash.  \n(5 Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2026_MTP_Series_2_Questions.pdf", "subject": "SM", "doc_type": "MTP", "attempt_period": "May_2026", "text": "(c)  \nKaran Malhotra owns a company that operates a chain of organic food restaurants \nin metropolitan cities. The market has a limited number of premium organic \nrestaurants, but customers have many alternative dining options such as fast-food \noutlets, home-cooked meals, and food delivery services. Customers are highly \nconscious of price and quality and frequently switch between restaurants based \non offers and reviews. Additionally, entering the organic restaurant business \nrequires moderate investment and compliance with food safety standards, but no \nDownloaded From www.castudynotes.com \nJoin Us on Telegram http://t.me/canotes_ipcc\nmajor technological barriers exist. Identify the Porter\u2019s Five Forces that are \nsignificant in this scenario and explain their impact on the company. \n(5 Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2026_MTP_Series_2_Questions.pdf", "subject": "SM", "doc_type": "MTP", "attempt_period": "May_2026", "text": "(a)  \nExplain the importance of values, as one of the components of strategic intent for \na company. What are the common examples of values? How values are different \nfrom intent? \n(5 Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2026_MTP_Series_2_Questions.pdf", "subject": "SM", "doc_type": "MTP", "attempt_period": "May_2026", "text": "(a)  \nWhich concept explains the efficiency increase gained by workers through \nrepetitive production work, leading to cost reduction and competitive advantage? \nList down its relevance features in strategic management. \n(5 Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2026_MTP_Series_2_Questions.pdf", "subject": "SM", "doc_type": "MTP", "attempt_period": "May_2026", "text": "(b) \nWrite a short note on the role of ADL Matrix in assessing the competitive position \nof a firm. \n(5 Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2026_MTP_Series_2_Questions.pdf", "subject": "SM", "doc_type": "MTP", "attempt_period": "May_2026", "text": "(a)  \n\"Managing stakeholders is critical to the success of a project\". Explain how \nMendelow's Matrix helps in managing stakeholders and categorizing the \nstakeholders into groups. \n(5 Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2026_MTP_Series_2_Questions.pdf", "subject": "SM", "doc_type": "MTP", "attempt_period": "May_2026", "text": "(b)  \nYork Investors, recognizing the importance of aligning its organizational elements \nwith strategic objectives, has strategically invested in training programs, \ntechnology, and communication systems. The company aims to enhance the skills \nand capabilities of its workforce through comprehensive training initiatives. \nSimultaneously, York Investors leverages cutting-edge technology to streamline \nits operations and improve overall efficiency. The investment in communication \nsystems ensures seamless collaboration and information flow across various \ndepartments. Identify and explain the model used by York Investors to achieve its \nstrategic objectives. \nOR \n \nMerako Appliances recently automated its assembly line to produce kitchen \ngadgets faster and at lower cost, improving operational efficiency. However, \ncustomer feedback shows that the new products don\u2019t meet market needs, leading \nto declining sales. This has sparked an internal debate on balancing efficiency \n(doing things right) with effectiveness (doing the right things). How should Merako \nbalance efficiency and effectiveness to achieve sustainable success? Also, \ndescribe the four possible situations a business can face when comparing levels \nof efficiency and effectiveness.  \n   (5 Marks) \n \nDownloaded From www.castudynotes.com \nJoin Us on Telegram http://t.me/canotes_ipcc"}]

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+[{"source_file": "Inter_P6_FMSM_FM_SM_May_2026_MTP_series_1_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "May_2026", "text": "Time Allowed \u2013 3 Hours (Total time for 6A and 6B)  \nMaximum Marks \u2013 50 \n1. \nThe question paper comprises two parts, Part I and Part II. \n2. \nPart I comprises Case Scenario based Multiple Choice Questions (MCQs) \n3. \nPart II comprises questions which require descriptive type answers. \n4. \nWorking note should form part of the answer. Wherever necessary, suitable assumptions \nmay be made by the candidates and disclosed by way of note. However, in answers to \nQuestions in Division A, working notes are not required. \nPART I \u2013 Case Scenario based MCQs (15 Marks) \nWrite the most appropriate answer to each of the following multiple choice questions by \nchoosing one of the four options given. All questions are compulsory. \nCase Scenario \nXYZ Limited is a mid-sized manufacturing company operating in the industrial equipment sector. \nThe company has been in operation for over 15 years and has established a strong market \npresence. As part of the annual financial review, the CFO has tasked you, a financial analyst, \nwith analyzing the company's capital structure, determining the cost of capital components and \nevaluate a proposed investment project. The finance team has compiled the following \ninformation from the company's latest financial statements and market data: \nBalance Sheet Data (Book Values) \n\u2022 \nEquity Share Capital: ` 15 lakhs \n\u2022 \nReserves & Surplus: ` 5 Lakhs \n\u2022 \nBook Value of Debt: ` 10 lakhs \n \n \nDownloaded From www.castudynotes.com \nJoin Us on Telegram http://t.me/canotes_ipcc\nMarket Data \nThe market has assigned different valuations to the company's securities: \n\u2022 \nMarket Value of Equity: The current market valuation of equity is 3 times its book value \n\u2022 \nMarket Value of Debt: The current market valuation of debt is 2 times its book value \nWeighted Average cost of capital(WACC) \nThe finance team has calculated the Weighted Average cost of capital of the firm under two \ndifferent approaches: \n1. \nAs per Book Value: 10% \n2. \nAs per Market Value: 10.5% \nThe company is considering a new project requiring an initial investment of ` 20 lakhs. The \nproject has the following additional features: \n\u2022 \nWorking Capital Requirement: ` 3 lakhs (fully recoverable at end of Year 3)  \n\u2022 \nSalvage Value: ` 2 lakhs (end of Year 3)  \n\u2022 \nDepreciation: Straight-line over 3 years. \nExpected Cash Inflows (before depreciation & tax): \nYear \nCash Inflows (` lakhs) \n8 \n9 \n10 \nAssume the tax rate is 25% and the investment rate is 2% more than the Pre tax cost of debt. \nThe project is evaluated based investment rate. \n \nYear 1 \nYear 2 \nYear 3 \n6% \n0.943 \n0.890 \n0.840 \n8% \n0.926 \n0.857 \n0.794 \n10% \n0.909 \n0.826 \n0.751 \n12% \n0.893 \n0.797 \n0.712 \n \n \n \nDownloaded From www.castudynotes.com \nJoin Us on Telegram http://t.me/canotes_ipcc\nYou are required to answer the following questions (MCQs 1 to 5): \n1. \nCost of equity is \u2013"}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2026_MTP_series_1_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "May_2026", "text": "(d)  \n2.89 years \n(5 x 2 = 10 Marks) \n \n \nDownloaded From www.castudynotes.com \nJoin Us on Telegram http://t.me/canotes_ipcc\n6.  \nThe capital structure of JKL Limited consists of 12% debentures of ` 50 lakhs, 10% \npreference shares of ` 25 lakhs, 14% term loan of ` 15 lakhs and equity share capital of \n` 48 lakhs. Its reserves & surpluses are ` 24 lakhs. What would be the capital-gearing \nratio?"}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2026_MTP_series_1_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "May_2026", "text": "(d)  \n1.56 \n(2 Marks) \n7.  \nThe following information is given for QB Ltd. \n \nEarnings per share \n \n \n \n` 180 \nDividend per share \n \n \n \n` 45 \nCost of capital \n \n \n \n \n17% \nInternal Rate of Return on investment \n \n20% \nWhat is the market price per share using Walter\u2019s formula:"}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2026_MTP_series_1_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "May_2026", "text": "(d) \n` 1,960 \n(2 Marks) \n8.  \nA firm has sales of ` 75,00,000, variable cost of ` 42,00,000 and fixed cost of ` 6,00,000. \n \nIt has a debt of ` 45,00,000 at 9% and equity of ` 55,00,000. Does it have favourable \nfinancial leverage?"}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2026_MTP_series_1_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "May_2026", "text": "(a) \nROI is less than interest on loan funds and hence it has no favourable financial \nleverage."}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2026_MTP_series_1_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "May_2026", "text": "(b)  \nROI is equal to interest on loan funds and hence it has favourable financial \nleverage."}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2026_MTP_series_1_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "May_2026", "text": "(c)  \nROI is greater than interest on loan funds and hence it has favourable financial \nleverage."}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2026_MTP_series_1_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "May_2026", "text": "(d)  \nROI is greater than interest on loan funds and hence it has unfavourable financial \nleverage. \n(1 Marks) \n \n \nDownloaded From www.castudynotes.com \nJoin Us on Telegram http://t.me/canotes_ipcc\nPART II \u2013 Descriptive Questions (35 Marks) \nQuestion No. 1 is compulsory. \nAttempt any two questions out of the remaining three questions."}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2026_MTP_series_1_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "May_2026", "text": "(a)  \nThe following information pertains to P Limited for the year ended 31st March, \n2025: \nParticulars \nAmount \nSales \n` 3,60,00,000 \nRate of Income Tax \n40% \nReturn on Net Worth \n30% \nShare Capital to Reserves Ratio \n6 : 4 \nCurrent Ratio \n2 : 1 \nPercentage of Net Profit to Sales \n8% \nInventory Turnover (based on cost of goods sold) \nCost of goods sold \n` 1,44,00,000 \nSundry Debtors \n` 12,00,000 \nSundry Creditors \n` 16,00,000 \nInterest on 14% debentures \n` 3,36,000 \nYou are required to CALCULATE:"}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2026_MTP_series_1_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "May_2026", "text": "(i)  \nOperating Expenses \n(ii)  \nShare Capital and Reserves \n(iii)  \nClosing Stock \n(iv)  \nFixed Assets \n(5 Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2026_MTP_series_1_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "May_2026", "text": "(b)  \nMr. Raman, a portfolio manager, is analyzing a set of securities using the Capital \nAsset Pricing Model (CAPM). He has gathered the following information: \nSecurity \nBeta \nCAPM Return \nA Ltd \n1.2 \n15.20% \nB Ltd \n0.8 \n12.80% \nC Ltd \n1.1 \n? \nCash in hand \n? \nNil \nTreasury Bill  \n? \n? \nStock Market i.e. Nifty  \n? \n? \nDownloaded From www.castudynotes.com \nJoin Us on Telegram http://t.me/canotes_ipcc"}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2026_MTP_series_1_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "May_2026", "text": "(i) \nComplete the above table with all missing values. \n(ii) \nCAPM explains the relationship between systematic risk and expected \nreturn on a security. DISCUSS the nature of the relationship between Beta \nand expected return under CAPM. \n  (5 Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2026_MTP_series_1_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "May_2026", "text": "(c)  \nA company wants to invest in a machinery that would cost ` 50,000 at the \nbeginning of year 1.  It is estimated that the net cash inflows from operations will \nbe ` 18,000 per annum for 3 years, if the company opts to service a part of the \nmachine at the end of year 1 at ` 10,000. In such a case, the scrap value at the \nend of year 3 will be ` 12,500.  However, if the company decides not to service \nthe part, then it will have to be replaced at the end of year 2 at ` 15,400.  But in \nthis case, the machine will work for the 4th year also and get operational cash \ninflow of ` 18,000 for the 4th year.  It will have to be scrapped at the end of year 4 \nat ` 9,000.  Assuming cost of capital at 10% and ignoring taxes, will you \nRECOMMEND the purchase of this machine based on the net present value of its \ncash flows? \n \nIf the supplier gives a discount of ` 5,000 for purchase, WHAT would be your \ndecision?  (The present value factors at the end of years 0, 1, 2, 3, 4, 5 and 6 are \nrespectively 1, 0.9091, 0.8264, 0.7513, 0.6830, 0.6209 and 0.5644). \n(5 Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2026_MTP_series_1_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "May_2026", "text": "(a) \nZanshu Ltd. is an all equity financed company with a market value of ` 25,00,000 \nand cost of equity (Ke) 21%.  The company wants to buyback equity shares worth \n`5,00,000 by issuing and raising 15% perpetual debt of the same amount.  Rate \nof tax may be taken as 30%.  After the capital restructuring and applying MM \nModel (with taxes), you are required to CALCULATE:"}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2026_MTP_series_1_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "May_2026", "text": "(i)  \nMarket value of Zanshu Ltd. \n(ii)  \nCost of Equity (Ke) \n(iii)  \nWeighted average cost of capital (using market weights) and comment on \nit. \n(6 Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2026_MTP_series_1_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "May_2026", "text": "(b)  \nThe following particulars are related to PQR Ltd: \nSales ` 1,50,00,000 \nVariable Cost ` 84,00,000 \nFixed Cost ` 12,00,000 \n \nThe company has borrowed ` 90,00,000 at 10% and its equity capital is  \n` 1,10,00,000. \nDownloaded From www.castudynotes.com \nJoin Us on Telegram http://t.me/canotes_ipcc\nYou are required to CALCULATE:"}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2026_MTP_series_1_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "May_2026", "text": "(i)  \nReturn on Investment (ROI). \n(ii)  \nOperating and Financial Leverages. \n(iii)  \nCombined Leverage. \n(iv)  \nEarnings Before Interest and Taxes (EBIT), if the sale is dropped to  \n` 1,00,00,000.  \n(4 Marks) \n3.  \nBeing a financial controller of Shilpa Limited, they have provided you with the debt \ncollection policy of the debtors\u2019 ageing analysis as on the date of analysis \u2013 \nName of Customers \nCurrent  \n31 \u2013 60 \nDays \n61 \u2013 90 \nDays \n91 or More \nDays \nTotal \nCustomer A \n3,12,500 \n1,05,000 \n- \n- \n4,17,500 \nCustomer B \n- \n- \n3,11,200 \n- \n3,11,200 \nCustomer C \n6,81,600 \n- \n- \n- \n6,81,600 \nCustomer D \n- \n- \n- \n1,62,000 \n1,62,000 \nCustomer E \n \n- \n3,01,500 \n2,10,000 \n  38,000   5,49,500 \n \n9,94,100 \n4,06,500 \n5,21,200 \n2,00,000 21,21,800 \nCollection Policy \u2013"}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2026_MTP_series_1_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "May_2026", "text": "(d) \nCash Discount of 2% is given to customers who make payment within 10 days of \ninvoice getting due. \nAdditional Information \u2013"}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2026_MTP_series_1_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "May_2026", "text": "(a) \n40% of the invoice value after bad debt falling in the ageing criteria of 31-60 days\u2019 \npay after 45th day but pay within the 60th day with 1.5% of the total being \nuncollectible"}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2026_MTP_series_1_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "May_2026", "text": "(b) \n25% of the invoice value after bad debt falling in the ageing criteria of 61-90 days\u2019 \npay after 75th day but pay within the 90th day with 3% of the total being \nuncollectible."}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2026_MTP_series_1_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "May_2026", "text": "(d) \n50% of the customers (invoice value) avail the cash discount. \nDownloaded From www.castudynotes.com \nJoin Us on Telegram http://t.me/canotes_ipcc"}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2026_MTP_series_1_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "May_2026", "text": "(e) \nAdministration cost for managing the above customers would also be involved \namounting to ` 50,000."}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2026_MTP_series_1_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "May_2026", "text": "(i) \nCALCULATE the effective cost involved in the collection process assuming \nthat the operating cost of sales ratio is 0.75. \n(ii) \nEXPLAIN three aspects of management of receivables.  \n(10 Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2026_MTP_series_1_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "May_2026", "text": "(c)  \nA company is analyzing its risk profile using combined leverage. It observes that \nits Degree of Operating Leverage (DOL) is low while its Degree of Financial \nLeverage (DFL) is high. The management believes this combination helps balance \noverall risk. Based on the concept of combined leverage, EXPLAIN whether this \nis a suitable risk combination and JUSTIFY your answer briefly. \n (2 Marks) \nOR"}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2026_MTP_series_1_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "May_2026", "text": "(c)  \nPecking order theory suggests that managers may use various sources for raising \nof fund in an order. EXPLAIN the preferred order of financing sources suggested \nby this theory. \n (2 Marks) \n \nDownloaded From www.castudynotes.com \nJoin Us on Telegram http://t.me/canotes_ipcc"}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2026_MTP_series_1_Questions.pdf", "subject": "SM", "doc_type": "MTP", "attempt_period": "May_2026", "text": "1. \nThe question paper comprises two parts, Part I and Part II. \n2. \nPart I comprises case scenario based multiple choice questions (MCQs) \n3. \nPart II comprises questions which require descriptive answers. \nPART I \u2013 Case scenario based MCQs (15 Marks) \n1. (A) (Compulsory) \n1. \n(A) \nPlaySphere Interactive was founded in Bangalore in 2010 as a small startup \ndeveloping mobile puzzle games for local users. For several years, its growth \nremained modest, as the Indian gaming industry was still in its infancy. \n \nIn 2015, the new CEO redefined the company \u2019s vision as  \u201cTo be India \u2019s leading \ncreator of immersive gaming experiences,\u201d and its mission as  \u201cTo design \nculturally relevant games with global quality.\u201d This gave PlaySphere both longterm direction and concrete operational purpose. \n \nThe company \u2019s breakthrough came when it launched a fantasy role-playing game, \nMythQuest, based on Indian mythology. Within a year, it reached millions of \ndownloads. Success was partly due to its core competitive advantage an in-house \ngame engine optimized for low-bandwidth conditions, which allowed seamless \nmultiplayer play. This helped PlaySphere survive intense industry rivalry and the \nthreat of substitutes from foreign gaming platforms, both of which are key forces \nin Porter \u2019s Five Forces model. \n \nAs player volumes increased, PlaySphere benefited from the experience curve \ncosts per unit declined as developers became more efficient and processes \nstandardized. This improved profitability despite rising competition. \n \nTo manage its expanding portfolio, the company restructured into two Strategic \nBusiness Units (SBUs): Mobile Games (casual and puzzle titles) and Immersive \nGames (RPGs and multiplayer). Each SBU was given autonomy for faster \ndecision-making, while the corporate office focused on resource allocation. \n \nLeadership also played a role. The CEO adopted a participative leadership style, \ninvolving development teams in key creative and technical decisions, which \nboosted morale and innovation. \n \nIn 2020, sudden regulations on in-app purchases threatened revenues. \nPlaySphere responded using special alert control, adjusting its monetization \nmodels quickly to stay compliant. At the same time, it relied on premise control to \nDownloaded From www.castudynotes.com \nJoin Us on Telegram http://t.me/canotes_ipcc\nmonitor assumptions about growth in internet penetration and youth \ndemographics, ensuring its strategies remained valid. \n \nToday, PlaySphere stands as one of Bangalore \u2019s fastest-growing gaming \ncompanies, with revenues crossing ` 4,000 crore, symbolizing how strategic \nclarity and adaptive execution can turn a startup into a national leader. \nBased on the above Case Scenario, answer the Multiple-Choice Questions."}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2026_MTP_series_1_Questions.pdf", "subject": "SM", "doc_type": "MTP", "attempt_period": "May_2026", "text": "(i)  \nPlaySphere \u2019s declaration  \u201cTo be India \u2019s leading creator of immersive \ngaming experiences\u201d is best classified as which element of strategic intent, \nand why?"}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2026_MTP_series_1_Questions.pdf", "subject": "SM", "doc_type": "MTP", "attempt_period": "May_2026", "text": "(d)  \nCorporate Strategy \u2013 because it defines resource allocation  \n \n(2 Marks) \n(ii)  \nThe success of MythQuest despite foreign competitors highlights which \nforces from Porter \u2019s Five Forces model that PlaySphere managed to \nwithstand?"}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2026_MTP_series_1_Questions.pdf", "subject": "SM", "doc_type": "MTP", "attempt_period": "May_2026", "text": "(d)  \nIndustry Rivalry and Bargaining Power of Suppliers  \n(2 Marks) \n(iii)  \nAs PlaySphere scaled up, development costs per unit declined due to \nlearning efficiencies and process standardization. Which strategic \nmanagement concept explains this phenomenon?"}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2026_MTP_series_1_Questions.pdf", "subject": "SM", "doc_type": "MTP", "attempt_period": "May_2026", "text": "(d)  \nCost Leadership \n(2 Marks) \n \n \n \nDownloaded From www.castudynotes.com \nJoin Us on Telegram http://t.me/canotes_ipcc\n(iv)  \nThe restructuring of PlaySphere into two SBUs (Mobile Games and \nImmersive Games) represents which level of strategy, and how does it help \nexecution?"}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2026_MTP_series_1_Questions.pdf", "subject": "SM", "doc_type": "MTP", "attempt_period": "May_2026", "text": "(v)  \nWhen regulations on in-app purchases suddenly changed, PlaySphere \napplied which type of strategic control and why?"}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2026_MTP_series_1_Questions.pdf", "subject": "SM", "doc_type": "MTP", "attempt_period": "May_2026", "text": "(i)  \nBright Screens\u2019 LED TV division has high market share in a fast-growing \nelectronics segment. It invests heavily in advertising and R&D to stay \nahead of competitors. How should this division be classified in the BCG \nMatrix?"}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2026_MTP_series_1_Questions.pdf", "subject": "SM", "doc_type": "MTP", "attempt_period": "May_2026", "text": "(d) \nQuestion Mark \n(2 Marks) \n(ii)  \nA company has strong R&D capability, but competitors can easily replicate \nits products. However, its organisational culture enables continuous \ninnovation which competitors cannot imitate. What is MOST likely the firm\u2019s \ncore competency?"}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2026_MTP_series_1_Questions.pdf", "subject": "SM", "doc_type": "MTP", "attempt_period": "May_2026", "text": "(d) \nManufacturing efficiency \n(2 Marks) \nDownloaded From www.castudynotes.com \nJoin Us on Telegram http://t.me/canotes_ipcc\n(iii)  \nWhat is the critical final step in Kurt Lewin\u2019s three-step model for \ninstitutionalizing organizational change?"}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2026_MTP_series_1_Questions.pdf", "subject": "SM", "doc_type": "MTP", "attempt_period": "May_2026", "text": "(d) \nInnovate (Creating a brand-new process) \n(1 Mark) \n \nPART II \u2013 Descriptive Questions (35 Marks) \nQuestion No. 1 is compulsory. \nAttempt any two questions out of the remaining three questions."}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2026_MTP_series_1_Questions.pdf", "subject": "SM", "doc_type": "MTP", "attempt_period": "May_2026", "text": "(a)  \nA strategic analyst wants to study the competitive positioning of companies in the \nsmartphone industry based on price range and product features. Explain how the \nanalyst can use Strategic Group Mapping to analyse the industry. Also, state the \ninsights that can be derived from such a map. \n(5 Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2026_MTP_series_1_Questions.pdf", "subject": "SM", "doc_type": "MTP", "attempt_period": "May_2026", "text": "(b)  \nA Mumbai-based conglomerate, PQR Ltd., has announced a major restructuring \nof its business operations. The company has decided to split its business into four \nseparate units: Manufacturing, Retail, Services, and Technology. Each unit will \noperate as a separate business, with delegated responsibility for day-to-day \noperations and strategy to the respective unit managers. Identify the organization \nstructure that PQR Ltd. has planned to implement. Discuss any four attributes and \nthe benefits the firm may derive by using this organization structure. \n(5 Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2026_MTP_series_1_Questions.pdf", "subject": "SM", "doc_type": "MTP", "attempt_period": "May_2026", "text": "(c)  \nGreenHarvest Foods, a well-established organic food company in the domestic \nmarket, is planning to expand globally. As part of its international strategy, the \ncompany is introducing region-specific organic products by adapting ingredients, \nflavours and packaging to suit local consumer preferences in different countries. \nThrough this approach, GreenHarvest Foods aims to cater to diverse markets and \nstrengthen its global footprint. Which expansion strategy from Ansoff\u2019s ProductMarket Growth Matrix best aligns with GreenHarvest Foods' approach?  \n \n(5 Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2026_MTP_series_1_Questions.pdf", "subject": "SM", "doc_type": "MTP", "attempt_period": "May_2026", "text": "(a)  \n\u201cA well-defined vision and mission statement provide direction and purpose to an \norganization.\" Explain the significance of vision and mission statements in \nstrategic planning. \n(5 Marks) \nDownloaded From www.castudynotes.com \nJoin Us on Telegram http://t.me/canotes_ipcc"}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2026_MTP_series_1_Questions.pdf", "subject": "SM", "doc_type": "MTP", "attempt_period": "May_2026", "text": "(b)  \n\u201cA close and continuous interaction between a business and its environment helps \nin strengthening the business firm and using its resources more effectively.\" \nExplain Business environment and discuss how does the interaction between a \nbusiness and its environment helps the business firm.  \n(5 Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2026_MTP_series_1_Questions.pdf", "subject": "SM", "doc_type": "MTP", "attempt_period": "May_2026", "text": "(b)  \n\"International development is expensive and challenging\". In the context of the \nstatement, explain the internationalization of business and the steps involved in \nsuch strategic planning. \n(5 Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2026_MTP_series_1_Questions.pdf", "subject": "SM", "doc_type": "MTP", "attempt_period": "May_2026", "text": "(a)  \nExplain the 'product market growth matrix' as propagated by Igor Ansoff as a \ndevice for identifying growth opportunities for the future. \n(5 Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_May_2026_MTP_series_1_Questions.pdf", "subject": "SM", "doc_type": "MTP", "attempt_period": "May_2026", "text": "(b)  \nWhy Strategic Performance Measures are essential for organizations? \nOR \n \nWhy is change management crucial during digital transformation, and what are some key \nstrategies for navigating change effectively? \n(5 Marks) \n \nDownloaded From www.castudynotes.com \nJoin Us on Telegram http://t.me/canotes_ipcc"}]

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+[{"source_file": "Inter_P6_FMSM_FM_SM_September_2024_MTP_1_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "September_2024", "text": "Time Allowed \u2013 3 Hours (Total time for 6A and 6B) \nMaximum Marks \u2013 50 \n1. \nThe question paper comprises two parts, Part I and Part II. \n2. \nPart I comprises Case Scenario based Multiple Choice Questions (MCQs) \n3. \nPart II comprises questions which require descriptive type answers. \n4. \nWorking note should form part of the answer. Wherever necessary, suitable \nassumptions may be made by the candidates and disclosed by way of note. \nHowever, in answers to Questions in Division A, working notes are not \nrequired. \nPART I \u2013 Case Scenario based MCQs (15 Marks) \nWrite the most appropriate answer to each of the following multiple choice \nquestions by choosing one of the four options given. All questions are \ncompulsory. \n \n \nKaivalyabodhi Limited (KbL) has completed 35 years of operations in India. It has \nmany subsidiary & associate companies in more than 100 countries. KbL\u2019s \nbusiness s include home and personal care, foods and beverages, and industrial, \nagricultural and other products. It is one of the largest producers of soaps and \ndetergents in India. The company has grown organically as well as through \nacquisitions. Over the years, the company has built a diverse portfolio of powerful \nbrands, some being household names. \nIt is planning to acquire one of its competitors named Prestige Limited, which would \nenhance the growth of \u2018KbL\u2019. The consideration amount will be 1.5X of its average \nMarket Capitalization. Prestige limited has 1,30,000 outstanding equity shares and \nits shares were traded at an average market price of ` 45 as on the valuation date. \nThe consideration amount will be paid equally in 5 years where the first installment \nis to be paid immediately. Prestige Limited has Ko of 15% \nKbL will raise the funds required through debt and equity in the ratio of 30:70. The \ncompany requires the cost of capital estimates for evaluating its acquisitions, \ninvestment decisions and the performance of its businesses. \nKbL\u2019s share price has grown from ` 150 to ` 301 in the last 5 years and it will \ncontinue to grow at the same rate. KbL pays dividends regularly. The company has \nrecently paid a dividend of ` 8. For the calculation of equity, an average of 52 weeks \nhigh market price in the last 5 years is to be considered, which is as follows: \n \nYr 1 \nYr 2 \nYr 3 \nYr 4 \nYr 5 \nMPS 185 \nMPS 210 \nMPS 252 \nMPS 325 \nMPS 280 \nKe calculated as per growth model holds a weight of 0.6. \nThe company also wishes to calculate the equity\u2019s expectation using CAPM which \nholds a weight of 0.4. The risk-free rate is assumed as the yield on long-term \ngovernment bonds that the company regards as about 8%. KbL regards the market- \nrisk premium to be equal to 11 per cent. Its estimation on the Beta is 0.78. \nKbL will issue debentures with FV of ` 10,500 which is to be amortised equally over \nthe life of 7 years. The company considers the effective rate of interest applicable \nto an \u2018AAA\u2019 rated company with a markup of 200 basis points as its coupon rate. It \nthinks that considering the trends over the years, \u2018AAA\u2019 rate is 7.5%. \nIgnore taxation. Based on the above details, answer the question 1 to 5: \n1. \nCalculate the cost of equity under both the methods"}, {"source_file": "Inter_P6_FMSM_FM_SM_September_2024_MTP_1_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "September_2024", "text": "(d) \n35.25% \n3. \nCalculate the cost of debt, if the intrinsic value of debenture today is close to \n` 9,740"}, {"source_file": "Inter_P6_FMSM_FM_SM_September_2024_MTP_1_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "September_2024", "text": "(d) \n66,58,997 \n(5 x 2 = 10 Marks) \n6. \nX ltd has actual Sales of ` 20 lakhs and its Break-even sales are at ` 15 lakhs. \nThe degree of total risk involved in the company is 6.5. Calculate the % impact \non EPS, if EBIT is affected by 12%."}, {"source_file": "Inter_P6_FMSM_FM_SM_September_2024_MTP_1_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "September_2024", "text": "(d)    19.5% \n(2 Marks) \n7. \nAssuming Ke = 11%, Kd = 8% and Ko = 10%, Debt Equity ratio of the company"}, {"source_file": "Inter_P6_FMSM_FM_SM_September_2024_MTP_1_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "September_2024", "text": "(d)    2:1 \n(2 Marks) \n8. \nGiven: \nEarnings available to the equity shareholders ` 30 Lakhs, \nCost of equity is 15%, \nDebt outstanding ` 150 Lakhs \nValue of the firm will be \u2013"}, {"source_file": "Inter_P6_FMSM_FM_SM_September_2024_MTP_1_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "September_2024", "text": "(d) \n` 300 Lakhs \n(1 Mark) \nPART II \u2013 Descriptive Questions (35 Marks) \nQuestion No. 1 is compulsory. \nAttempt any two questions out of the remaining three questions."}, {"source_file": "Inter_P6_FMSM_FM_SM_September_2024_MTP_1_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "September_2024", "text": "(a) \nYou are required to CALCULATE the Total Current Assets of Ananya \nLimited from the given information: \n \nStock Turnover \n= 5 times \nSales (All credit) \n= ` 7,20,000 \nGross Profit Ratio \n= 25% \nCurrent Liabilities \n= 2,40,000 \nLiquidity Ratio \n= 1.25 \nStock at the end is ` 30,000 more than stock in the beginning. \n(5 Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_September_2024_MTP_1_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "September_2024", "text": "(b) \nGitarth Limited has a current debt equity ratio of 3:7. The company is \npresently considering several alternative investment proposals costing \nless than ` 25 lakhs. The company will always raise the funds required \nwithout disturbing its current capital structure ratio. \nThe cost of raising debt and equity are as follows- \n \nCost of Project \nKd \nKe \nUpto 5 lakhs \n10% \n12% \nAbove 5 lakhs & upto 10 lakhs \n12% \n13.5% \nAbove 10 lakhs & upto 20 lakhs \n13% \n15% \nAbove 20 lakhs \n14% \n16% \nCorporate tax rate is 30%, CALCULATE: \ni) \nCut off rate for two Projects I & Project II whose fund requirements \nare 15 lakhs & ` 26 lakhs respectively. \nii) \nIf a project is expected to give an after-tax return of 13%, determine \nunder what conditions it would be acceptable. \n(5 Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_September_2024_MTP_1_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "September_2024", "text": "(c) \nFrom the following details of X Ltd, PREPARE the Income Statement for \nthe year ended 31st December: \n \nFinancial Leverage \nInterest \n` 2,000 \nOperating Leverage \nVariable Cost as a Percentage of Sales \n75% \nIncome Tax Rate \n30% \n(5 Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_September_2024_MTP_1_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "September_2024", "text": "(a) \nThe financial statements of Gurunath Ltd is furnished below \u2013 \nBalance Sheet as at 31st March \n \nParticulars as at 31st March \nNote \n` \nI \nEQUITY AND LIABILITIES: \n(1) Shareholders\u2019 Funds: \n10,00,000 \n(2) Non\u2013Current Liabilities: 10% Debt \n6,00,000 \n(3) Current Liabilities \n1,56,000 \nTotal \n17,56,000 \nII \nASSETS \n(1) Non\u2013Current Assets \n16,56,000 \n(2) Current Assets \u2013 Trade Receivables \n1,00,000 \nTotal \n17,56,000 \nAdditional Information: \n1. \nThe existing credit terms are 1/10, net 45 days and average \ncollection period is 30 days. The current bad debts loss is 1.5%. In \norder to accelerate the collection process further as also to \nincrease sales, the company is contemplating liberalization of its \nexisting credit terms to 2/10, net 45 days. \n2. \nIt is expected that sales are likely to increase by 1/3 of existing \nsales, bad debts increase to 2% of sales and average collection \nperiod to decline to 20 days. \n3. \nCredit period allowed by the supplier is 60 days. Generally, \noperating expenses are paid 2 months in arrears. Total Variable \nexpenses of the company constitute Purchases of stock in trade \nand operating expenses only. \n4. \nOpportunity cost of investment in receivables is 15%. 50% and 80% \nof customers in terms of sales revenue are expected to avail cash \ndiscount under existing and liberalization scheme respectively. The \ntax rate is 30%. \n5. \nThe Company considers only the relevant or variable costs for \ncalculating the opportunity costs on the funds blocked \nin \nreceivables. Assume 360 days in a year and 30 days in a month. \nShould the company change its credit terms? \n(6 Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_September_2024_MTP_1_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "September_2024", "text": "(b) \nThe following information is given for QB Ltd. \nEarnings per share \n` 180 \nDividend per share \n` 45 \nCost of capital \n17% \nInternal Rate of Return on investment \n20% \nCALCULATE the market price per share using -"}, {"source_file": "Inter_P6_FMSM_FM_SM_September_2024_MTP_1_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "September_2024", "text": "(a) Parmarth Limited is a manufacturer of computers. Owing to recent \ndevelopments in Artificial Intelligence (AI), it is planning to introduce AI \nin its computer process. This would \nresult \ninto \nan \nestimated \nannual savings as follows:"}, {"source_file": "Inter_P6_FMSM_FM_SM_September_2024_MTP_1_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "September_2024", "text": "(i) \nSavings of ` 3,50,000 in production delays caused by inventory \nproblem. \n(ii) \nSavings in Salaries of 5 employees with an annual pay of ` 4,20,000 \nper annum \n(iii) \nReduction in Lost sales of ` 1,75,000 \n(iv) Gain due to timely billing is ` 3,25,000 \nThe project would result in annual maintenance and operating costs as \nfollows, which are to be paid in advance (at the beginning) \n \nYEAR \n2 \n4 \nCOST \n1,80,000 \n2,00,000 \n1,20,000 \n1,10,000 \n1,30,000 \nFurthermore, the new system would need 2 AI specialists' professional \ndrawing salaries of ` 6,50,000 per annum per person. The purchase \nprice of the new system for installing AI into computers would involve an \noutlay of ` 21,50,000 and installation cost of ` 1,50,000. \n75% of the total value for depreciation would be paid in the year of \npurchase and the balance would be paid at the end of the 1st year. The \nnew system will be sold for ` 1,90,000. This is the only asset in the block \nfor Income tax purpose. \nThe life of the system would be 5 years with the hurdle rate of 12%. \nDepreciation will be charged at 40% on WDV basis, corporate tax rate is \n25% and capital gains tax rate is at 20%. \nCALCULATE NPV and advise the management on the acceptability of \nthe proposal. Also calculate ARR & PI. \n(8 Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_September_2024_MTP_1_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "September_2024", "text": "(b) \nBriefly EXPLAIN the following \u2013 \ni. \nFully Hedged Bonds \nii. \nMedium Term Notes \niii. \nFloating Rate Notes \niv. \nEuro Commercial Papers \n(4 Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_September_2024_MTP_1_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "September_2024", "text": "(c) \nWHAT is the range of DOL?  \n(2 Marks) \nOR \nDISCUSS the role of a chief financial officer. \n(2 Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_September_2024_MTP_1_Questions.pdf", "subject": "SM", "doc_type": "MTP", "attempt_period": "September_2024", "text": "1. \nThe question paper comprises two parts, Part I and Part II. \n2. \nPart I comprises case scenario based multiple choice questions (MCQs) \n3. \nPart II comprises questions which require descriptive type answers. \nPART I \u2013 Case scenario based MCQs (15 Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_September_2024_MTP_1_Questions.pdf", "subject": "SM", "doc_type": "MTP", "attempt_period": "September_2024", "text": "Question 1. (A) (Compulsory) \n1. \n(A)    Kriti Pvt. Ltd. has been importing French gourmet cheeses under the \nbrand name of 'Fromage' since 2017. The company was amongst the \nfirst in India to introduce innovative unbreakable cheese packaging. \nTheir affiliate, a French company owning Fromage, had entered into a \nprogressive deal, wherein products would be sourced to India via their \nlogistics, and all marketing expenditures would be covered by them. \nHowever, customer management and nationwide distribution would be \ntaken care of by Kriti Pvt. Ltd. This required an English-speaking skilled \nworkforce, which has been a constant challenge for the company in \nIndia. \nThe owners of Kriti Pvt. Ltd. have been regular attendees at industry- \nrelevant conclaves, both national and international. Leaders of the \ncompany are passionate readers of business magazines. Following that, \nit was observed that the recent sentiment of the country towards \u2018Vocal \nfor Local\u2019 could disrupt their French brand\u2019s marketability. \nAn \nextraordinary meeting was set up, and the steps ahead were planned. \nThe outcome of the meeting was to partner with local producers of \ntraditional Indian cheeses in phase one of the change strategy. For this, \nseven state governments were approached. The team was successful in \ntaking contracts from all the government departments of these seven \nstates and could position themselves fairly in the market. To fund this \nnew investment, they have planned to slowly sell off their French \nbusiness assets as well as the brand, to probable buyers. \nThis timely shift is proving to be a game-changer for the company, and \nthe leadership is quite happy with better than before earnings and a \nmuch greater response from the customers. They find it easier to operate \nwith domestic producers and vendors, and a sense of patriotism is \ninstilled in the consumers\u2019 minds. \nBased on the above Case Scenario, answer the Multiple-Choice \nQuestions."}, {"source_file": "Inter_P6_FMSM_FM_SM_September_2024_MTP_1_Questions.pdf", "subject": "SM", "doc_type": "MTP", "attempt_period": "September_2024", "text": "(i) \nWhich of the following actions taken by Kriti Pvt. Ltd. is an example \nof a proactive strategy?"}, {"source_file": "Inter_P6_FMSM_FM_SM_September_2024_MTP_1_Questions.pdf", "subject": "SM", "doc_type": "MTP", "attempt_period": "September_2024", "text": "(d) \nCovering all marketing expenditures for 'Fromage' in India. \n(2 Marks) \n(ii) \nWhich of the following types of strategic control did the owners and \nleadership of Kriti Pvt. Ltd. deploy that eventually turned out to be \none of the most effective strategic decisions for the company?"}, {"source_file": "Inter_P6_FMSM_FM_SM_September_2024_MTP_1_Questions.pdf", "subject": "SM", "doc_type": "MTP", "attempt_period": "September_2024", "text": "(d) \nStrategic surveillance \n(2 Marks) \n(iii) \n\u2018Vocal for Local\u2019 is a market sentiment that changed customers\u2019 \npreferences for the majority of products across all industries. Based \non that, Kriti Pvt. Ltd. gauged the competition it might face in the \ncoming months and agreed to change its own product. Which of the \nfollowing forces, as per Michael Porter\u2019s five forces of competitive \nanalysis, is most relevant in this case?"}, {"source_file": "Inter_P6_FMSM_FM_SM_September_2024_MTP_1_Questions.pdf", "subject": "SM", "doc_type": "MTP", "attempt_period": "September_2024", "text": "(d) \nBargaining power of the buyer \n(2 Marks) \n(iv) Which of the following aspects of value chain analysis was the most \nchallenging for Kriti Pvt. Ltd. at the time of selling the Fromage \nbrand?"}, {"source_file": "Inter_P6_FMSM_FM_SM_September_2024_MTP_1_Questions.pdf", "subject": "SM", "doc_type": "MTP", "attempt_period": "September_2024", "text": "(v) \nTo strategically revamp their business, partnerships were done with \nIndian local producers from seven states, and to fund it, the existing \narm of the business was to be sold off. Which of the following \nstrategies has Kriti Pvt. Ltd. opted for?"}, {"source_file": "Inter_P6_FMSM_FM_SM_September_2024_MTP_1_Questions.pdf", "subject": "SM", "doc_type": "MTP", "attempt_period": "September_2024", "text": "(i) \nTechWave, a software development firm, aims \nto \ngain \na \ncompetitive edge in the rapidly evolving tech industry. To achieve \nthis, they focus on building their strength in artificial intelligence (AI) \nand machine learning (ML). TechWave invests heavily in R&D, \nhires top talent with specialized skills, and forms partnerships with \nleading AI research institutions. They also provide continuous \ntraining for their employees to keep them updated with the latest \nadvancements. By developing these, TechWave can create \ninnovative \nAI-driven \nsolutions \nthat \ndifferentiate \nthem \nfrom \ncompetitors and attract a growing number of clients seeking cuttingedge technology. What strategy is TechWave using to gain a \ncompetitive edge in the tech industry?"}, {"source_file": "Inter_P6_FMSM_FM_SM_September_2024_MTP_1_Questions.pdf", "subject": "SM", "doc_type": "MTP", "attempt_period": "September_2024", "text": "(d) \nCost leadership \n(2 Marks) \n(ii) \nStreamlineCo is examining its internal capabilities to ensure that \nemployees \npossess \nadvanced \nknowledge \nof \nemerging \ntechnologies crucial for the company's future success. This \ninvolves investing in specialized training programs and updating job \nroles to match the latest industry standards. Which aspect of \nStreamlineCo is being enhanced through specialized training and \nupdated job roles?"}, {"source_file": "Inter_P6_FMSM_FM_SM_September_2024_MTP_1_Questions.pdf", "subject": "SM", "doc_type": "MTP", "attempt_period": "September_2024", "text": "(d) \nStyle \n(2 Marks) \n(iii) \n XYZ Corporation has launched AlphaTech to enter the consumer \nelectronics industry with a focus on offering high-performance \ndevices and innovative features at competitive prices. Which \ncompetitive strategy is AlphaTech employing?"}, {"source_file": "Inter_P6_FMSM_FM_SM_September_2024_MTP_1_Questions.pdf", "subject": "SM", "doc_type": "MTP", "attempt_period": "September_2024", "text": "(d) \nFocus strategy \n(1 Mark) \nPART II \u2013 Descriptive Questions (35 Marks) \nQuestion No. 1 is compulsory. \nAttempt any two questions out of the remaining three questions."}, {"source_file": "Inter_P6_FMSM_FM_SM_September_2024_MTP_1_Questions.pdf", "subject": "SM", "doc_type": "MTP", "attempt_period": "September_2024", "text": "(a) Mr. Arun has been hired as the CEO by ABC Ltd, a pharmaceutical \ncompany that has diversified into affordable wellness supplements. The \ncompany intends to launch the HealthPlus brand of supplements. ABC \nwishes to enhance the well-being of people with its products that are \nbeneficial for health and are produced in an environmentally sustainable \nmanner using natural ingredients. Draft a vision and mission statement \nthat may be formulated by Arun. \n(5 Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_September_2024_MTP_1_Questions.pdf", "subject": "SM", "doc_type": "MTP", "attempt_period": "September_2024", "text": "(b) \nGreenGardens, a small but growing organic farm, is assessing its \nbusiness environment to strategically plan for future growth. The farm \nboasts high-quality, pesticide-free crops, but faces challenges with its \nlimited distribution channels. As the demand for organic products \ncontinues to rise, GreenGardens recognizes the potential to broaden its \nmarket \nreach. \nHowever, \nunpredictable \nweather \nconditions \nand \ncompetition from larger farms present \nsignificant \nobstacles. \nTo \neffectively navigate these challenges and opportunities, GreenGardens \nneeds to conduct a comprehensive evaluation. Identify the type of \nanalysis GreenGardens should conduct to strategically plan for its future \ngrowth and outline the grid. \n(5 Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_September_2024_MTP_1_Questions.pdf", "subject": "SM", "doc_type": "MTP", "attempt_period": "September_2024", "text": "(c) \nFreshDelight, renowned for its organic fruit juices, aims to expand its \nmarket presence by identifying emerging markets in countries where \norganic products are gaining popularity. To achieve this, FreshDelight \nlaunches targeted marketing campaigns and partners with local \ndistributors to introduce its juices to these new regions. This strategy \ninvolves adapting product packaging and marketing messages to align \nwith local preferences and regulations. By entering these new markets, \nFreshDelight hopes to increase its customer base and drive sales \ngrowth. What strategy is FreshDelight using to expand its market \npresence? \n(5 Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_September_2024_MTP_1_Questions.pdf", "subject": "SM", "doc_type": "MTP", "attempt_period": "September_2024", "text": "(a)    The CEO of a textile mill is convinced that his loss-making company can \nbe turned around. Suggest an action plan for a turnaround to the CEO. \n(5 Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_September_2024_MTP_1_Questions.pdf", "subject": "SM", "doc_type": "MTP", "attempt_period": "September_2024", "text": "(a) \"Understanding the competitive landscape is important to build upon a \ncompetitive advantage\". Explain. \n(5 Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_September_2024_MTP_1_Questions.pdf", "subject": "SM", "doc_type": "MTP", "attempt_period": "September_2024", "text": "(b) XYZ Corporation operates in a diverse range of industries, including \nfashion, lifestyle products, furniture, real estate, and electrical goods. \nThe company is seeking to hire a suitable Chief Executive Officer. As \nthe HR consultant for XYZ Corporation, you have been tasked with \noutlining the activities involved in the role of the Chief Executive Officer. \nIdentify the strategic level associated with this role and list the activities \nit encompasses. \n(5 Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_September_2024_MTP_1_Questions.pdf", "subject": "SM", "doc_type": "MTP", "attempt_period": "September_2024", "text": "(b) Major core competencies are identified in three areas - competitor \ndifferentiation, customer value and \napplication \nto \nother \nmarkets. \nDiscuss. \nOR \nWhat factors should organizations consider when choosing strategic \nperformance measures, and why are these factors important? \n(5 Marks)"}]

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+[{"source_file": "Inter_P6_FMSM_FM_SM_September_2024_MTP_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "September_2024", "text": "TimeAllowed\u20133Hours(Totaltimefor6Aand6B) \nMaximumMarks\u201350 \n1. \nThequestionpapercomprisestwoparts,PartIandPartII. \n2. \nPartIcomprisesCaseScenariobasedMultipleChoiceQuestions(MCQs) \n3. \nPartIIcomprisesquestionswhichrequiredescriptivetypeanswers. \n4. \nWorking note should form part of the answer. Wherever necessary, suitable \nassumptions may be made by the candidates and disclosed by way of note. \nHowever, in answers to Questions in Division A, working notes are notrequired. \n \nPARTI\u2013CaseScenariobasedMCQs(15Marks) \nWrite the most appropriate answer to each of the following multiple \nchoicequestions by choosing one of the four options given. All questions \narecompulsory. \n \nMathangi Ltd. is a News broadcasting channel having its broadcasting Centre in \nChennai. There are total 200 employees in the organisation including top \nmanagement. As a part of employee benefit expenses, the company serves tea toits \nemployees, which is outsourced from a third-party. The company offers tea three \ntimes a day to each of its employees. The third-party charges ` 10 for each cup of \ntea. The company works for 200 days in a year. \nLookingatthesubstantialamountofexpenditureontea,thefinancedepartment \nhas \nproposed to the management an installation of a master tea vending machine from \nNirmal Ltd which will cost ` 5,00,000 with a useful life of five years. Upon purchasing \nthe machine, the company will have to incur annual maintenance which will require a \npayment of ` 25,000 every year. The machine would require electricity consumption \nof 500 units p.m. and current incremental cost of electricity for the company is ` 24 \nper unit. Apart from these running costs, the company will have to incur ` 8,00,000 \nfor consumables like milk, tea powder, paper cup, sugar etc. The company is in the \n25% tax bracket. Straight line method of depreciation is allowedfor the purpose of \ntaxation. \nNirmal Ltd sells 100 master tea vending machines. Variable cost is ` 4,50,000 per \nmachine and fixed operating cost is ` 25,00,000. Capital Structure of Mathangi Ltd \nand Nirmal Ltd consists of the following \u2013 \nParticulars \nMathangiLtd. \nNirmalLtd. \nEquityShareCapital(Facevalue`10each) \n40,00,000 \n40,00,000 \nReserves&Surplus \n25,00,000 \n50,00,000 \n12%PreferenceShareCapital \n12,00,000 \nNil \n15%Debentures \n20,00,000 \n40,00,000 \nRisk free rate of return = 5%, Market return = 10%, Beta of the Mathangi Ltd.= \n1.9Youarerequiredtoanswerthefollowingfivequestionsbasedontheabovedetails: \n1. \nIfsalesofNirmalLtdareupby10%,impactonitsEBITis"}, {"source_file": "Inter_P6_FMSM_FM_SM_September_2024_MTP_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "September_2024", "text": "(d) \n3. \nDiscount rate that can be applied for making investment decisions of Mathangi \nLtd is"}, {"source_file": "Inter_P6_FMSM_FM_SM_September_2024_MTP_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "September_2024", "text": "(d) \n20% \n4. \nIncremental cash flow after tax per annum attributable to Mathangi Ltd due \ntoinvestment in the machine is"}, {"source_file": "Inter_P6_FMSM_FM_SM_September_2024_MTP_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "September_2024", "text": "(d) \n`4,91,250 \n(5x2=10Marks) \n6. \nTotal Assets & Current liabilities of the Vitrag Limited are 50 lakhs & 10 lakhs \nrespectively.ROCEis15%,measureofbusinessoperatingriskisat3.5& P/V ratio is \n70%. Calculate Sales."}, {"source_file": "Inter_P6_FMSM_FM_SM_September_2024_MTP_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "September_2024", "text": "(d) \n40lakhs \n(2Marks) \n7. \nA company has issued bonds with a face value of ` 100,000 at an annual \ncoupon rate of 8%. The bonds are currently trading at 95% of their face value. \nWhatistheapproximatecostofdebtforthecompanybeforetaxes."}, {"source_file": "Inter_P6_FMSM_FM_SM_September_2024_MTP_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "September_2024", "text": "(d) \n8.42% \n(2Marks) \n8. \nA company is considering changing its capital structure by increasing its debt \nratio from 40% to 55%. What is the likely impact on the company\u2019s cost of \nequity, assuming all other factors remain constant?"}, {"source_file": "Inter_P6_FMSM_FM_SM_September_2024_MTP_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "September_2024", "text": "(a) \nXLtdiswillingtoraisefundsforitsNewProjectwhichrequiresan investment \nof`84 Lakhs. The Company hastwo options: \n \nOptionI: \nToissueEquityShares(`10each)only \nOptionII: \nTo avail Term Loan at an interest rate of 12%. But in this \ncase,asinsistedbytheFinancingAgencies,the \nCompanywill \nhaveto maintain aDebt\u2013Equityproportion of 2:1. \nTheCorporateTaxRateis30%.FINDoutthepointofindifferencefor theproject.\n \n(5Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_September_2024_MTP_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "September_2024", "text": "(b) \nMr. Anand is thinking of buying a Share at ` 500 whose Face Value per \nshareis`100.Heisexpectingabonusattheratio1:5attheendof the fourth year. \nAnnual expected dividend is 20% and the same rate is expected to be \nmaintained \non \nthe \nexpanded \ncapital \nbase. \nHe \nintends \nto \nselltheSharesattheendofseventhyearatanexpectedpriceof`900 \neach.IncidentalExpensesforpurchaseandsaleofSharesare \nestimatedtobe5%oftheMarket Price.AssumingaDiscountrateof 12% per \nannum, \nCOMPUTE \nthe \nNet \nPresent \nValue \nfrom \nthe \nacquisitionoftheshares. \n(5Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_September_2024_MTP_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "September_2024", "text": "(c) \nPaarath Limited had recently repurchased 20,000 equity shares at a \npremium of 10% to its prevailing market price. The book value per share \n(after repurchasing) is ` 193.20. \nOtherDetailsofthecompanyareasfollows: \nEarnings of the company (before buyback) = ` 18,00,000 \nCurrent MPS is `270 with a P/E Ratio of 18. \nCALCULATEtheBookValuepershareofthecompanybeforethere- purchase.\n \n(5Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_September_2024_MTP_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "September_2024", "text": "(a)SukrutLimitedhasannualcreditsalesof`75,00,000/-.Actualcredit terms are 30 \ndays, but its management of receivables has been poor,and the average \ncollection period is about 60 days.Bad debt is 1 percent of total sales. \nAfactorhasofferedtotakeoverthetaskofdebtadministrationand \ncreditchecking,atanannualfeeof1.5percentofcreditsales. \nSukrut Limited estimates that it would save ` 45,000 per year in \nadministration costs as a result. Due to the efficiency of the factor, the \naveragecollectionperiodwouldcomeback \ntotheoriginalcredit \noffered \nof \n30daysandbaddebtswouldcometo0.5%onrecoursebasis. \nThe factor would pay net advance of 80 percent to the company at an \nannual interest rate of 12 per cent after withholding a reserve of 10%. \nSukrut Limited is currently financing its receivables from an overdraft \ncosting 10 per cent per year and will continue to finance the balance fund \nneeded(whichisnotfinancedbyfactor)throughtheoverdraftfacility \nIf occurrence of credit sales is throughout the year, COMPUTE whether \nthefactor\u2019sservicesshouldbeacceptedorrejected.Assume360days inayear.\n \n(7Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_September_2024_MTP_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "September_2024", "text": "(b) \nDetermining the amount to be invested in current assets as working \ncapital is a crucial policy decision for any entity. WhatFACTORS shoulda \ncompany consider when deciding the level of investment in working \ncapital? \n(3Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_September_2024_MTP_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "September_2024", "text": "(a)Calculate the WACC using the following data by using Market Value weights: \n \nParticulars \n` \nEquityShares(`10perequity share) \n15,00,000 \nReserves& Surplus \n5,00,000 \nPreferenceShares \n(`100perpreference share) \n7,50,000 \nDebentures \n(`100per debenture) \n5,50,000 \nThemarketpricesofthesesecuritiesare: \nDebentures-`105perdebenture, \nPreference shares - `115 per preference share \nEquity shares - `27 per equity shareAdditional \ninformation: \n(1) \n`100FVperdebentureredeemableatpremiumof10%,10% coupon rate, \n4% floatation costs, 10-year maturity. \n(2) \n`100FVperpreferenceshareredeemableatpar,12%coupon rate, 2% \nfloatation cost and 10-year maturity. \n(3) \nEquity shares have `4.5 floatation cost and market price of 27 per \nshare. \nThe last dividend paid by the company was ` 2 which is expected to grow \nat an annual growth rate of 9%. The firm has the practice of paying all \nearnings as a dividend. \nThe corporate tax rate is 25%. To calculate the overall cost of debt & \npreference shares, take the average of their respective costs using \nYTM&approximationmethod. \n(6Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_September_2024_MTP_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "September_2024", "text": "(b) \nEPL Ltd. has furnished the following information relating to the yearended \n31stMarch 2023 and 31stMarch, 2024: \n \n31stMarch,2023 \n31stMarch,2024 \nShareCapital \n50,00,000 \n50,00,000 \nReserveandSurplus \n20,00,000 \n25,00,000 \nLongtermloan \n30,00,000 \n30,00,000 \n\uf0b7 \nNetprofitratio:8% \n\uf0b7 \nGrossprofitratio:20% \n\uf0b7 \nLong-termloanhasbeenusedtofinance40%ofthefixedassets. \n\uf0b7 \nStockturnoverwithrespecttocostofgoodssoldis4. \n\uf0b7 \nDebtorsrepresent90dayssales. \n\uf0b7 \nThecompanyholdscashequivalentto1\u00bdmonthscostofgoods sold. \n\uf0b7 \nIgnoretaxationandassume360daysinayear. \nYou are required to PREPARE Balance Sheet as on 31stMarch 2024 \ninfollowing format: \n \nLiabilities \n(`) Assets \n(`) \nShareCapital \n- FixedAssets \n- \nReserveandSurplus \n- SundryDebtors \n- \nLong-termloan \n- ClosingStock \n- \nSundryCreditors \n- Cashinhand \n- \n(4Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_September_2024_MTP_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "September_2024", "text": "(a)The agency problem is one of the key concepts in corporate governance and \nfinancial management. On the light of this statement, EXPLAIN \nagencyproblem,consequencesofagencyproblemandhowto \novercometheissue. \n(4Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_September_2024_MTP_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "September_2024", "text": "(b) \nOperating leases and financial leases are traditionally the most important \ntypes of leases in financial management. However, in recent years, other \ntypes of leases have also gained significance due to their unique benefits \nand applications. IDENTIFY AND EXPLAIN at least four other types of \nleases that have become increasingly important in modern business \npractices. \n(4Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_September_2024_MTP_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "September_2024", "text": "(c) \nEXPLAINFinancialLeverageasa\u2018DoubleedgedSword\u2019 \n(2Marks) \nPAPER6B:STRATEGICMANAGEMENT \n1. \nThequestionpapercomprisestwoparts,PartIandPartII. \n2. \nPartIcomprisescasescenariobasedmultiplechoicequestions(MCQs) \n3. \nPartIIcomprisesquestionswhichrequiredescriptivetypeanswers. \nPART I \u2013 Case scenario based MCQs (15 Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_September_2024_MTP_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "September_2024", "text": "Question 1. (Compulsory) \n1. \n(A)Sneha Rao, founder and CEO of DEF Technologies, is renowned for her \ntechnological insight and visionary leadership style. She cultivates a \nculture of collaboration, continuous learning, and innovative problem- \nsolving, \nencouraging \nher \nemployees \nto \nthink \noutside the box \nandembracenewchallenges.Herexceptionalabilitytoforesee \ntechnological \ntrends and navigate complex market dynamics has propelledDEF \nTechnologies to impressive growth over the past decade. \nSneha started DEF Technologies in 2010 as a small software \ndevelopment firm. With a vision to transform DEF Technologies into a \nleading tech company, she initially focused on developing custom \nsoftware \nsolutions \nfor \nlocal \nbusinesses. \nHowever, \nintense \ncompetitionandlimitedmarketdemandledtofinancialdifficulties.Undeterred, \nSneha pivoted the business towards developing cloud-based solutions, \nleveraging the growing trend of digital transformation. This strategic shift, \nalong with aggressive marketing, helped DEF Technologies capture a \nsignificant market share and become a leader in cloud services, setting \nnew industry standards. \nIn 2015, Sneha's brother, Raj, joined the company, and together they \ncrafted an ambitious expansion strategy. DEF Technologies entered the \nglobal market,partneringwithinternationaltechfirms tolaunch anew line of \nAI-driven cybersecurity solutions. This venture was highly successful, \nestablishing DEF Technologies as a global brand and a key player in the \ncybersecurity industry. \nRaj then led the company\u2019s diversification into the healthcare sector witha \nnew brand, MedTech Solutions. Recognizing the potential fortechnology \nto revolutionize healthcare, Sneha and Raj focused on developing \naffordable telemedicine platforms and AI-driven diagnostic tools. Their \napproach disrupted the market, providing high-quality healthcare solutions \nat lower costs and gaining widespread trust from healthcare providers and \npatients alike. MedTech Solutions experienced rapid growth, especially \nduring the COVID-19 pandemic, as demand for remote healthcare \nservices surged. \nAt the beginning of 2023, DEF Technologies launched another new \nbusiness, GreenTech Innovations, to address environmental challenges \nthrough technology. DEF Technologies continues to explore new \nopportunitiesandventurestostayattheforefrontofthetechindustry. \nBasedontheaboveCaseScenario,answertheMultiple-ChoiceQuestions."}, {"source_file": "Inter_P6_FMSM_FM_SM_September_2024_MTP_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "September_2024", "text": "(d) \nObjective \n(2Marks) \n(ii) \nSneha\u2019s leadership style, which promotes collaboration, continuous \nlearning, and innovative problem-solving, can best be described as:"}, {"source_file": "Inter_P6_FMSM_FM_SM_September_2024_MTP_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "September_2024", "text": "(d) \nLaissez-faireleadership \n(2Marks) \n(iii) When DEF Technologies expanded into the global market with AI- \ndriven cybersecurity solutions, which of Porter's Five Forces was \nmost likely mitigated by forming partnerships with international tech \nfirms?"}, {"source_file": "Inter_P6_FMSM_FM_SM_September_2024_MTP_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "September_2024", "text": "(v) \nMedTech Solutions\u2019 focus on developing affordable telemedicine \nplatforms and AI-driven diagnostic tools reflects which of the \nfollowing competitive strategies?"}, {"source_file": "Inter_P6_FMSM_FM_SM_September_2024_MTP_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "September_2024", "text": "(i) \nA traditional desi ghee company modernized its production and \nintroduced pro-biotic desi ghee, facing initial market doubts. \nAggressive marketing campaigns highlighted its benefits, gaining \nacceptance.Duringwhichstageoftheproductlifecycledidthe desi ghee \ncompany face doubts but gained acceptance through aggressive \nmarketing campaigns?"}, {"source_file": "Inter_P6_FMSM_FM_SM_September_2024_MTP_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "September_2024", "text": "(d) \nDeclinestage \n(2Marks) \n(ii) \nValueMart is a discount retail chain that targets budget-conscious \nconsumers by offering a wide range of products at the lowest \npossible prices. The company achieves this by sourcing goods in \nbulk, negotiating lower prices with suppliers, and maintaining lean \noperations. ValueMart's goal is to dominate the market by attracting \nprice-sensitive customers from competitors. Which of Michael \nPorter\u2019sGenericStrategiesisValueMartprimarilyemploying?"}, {"source_file": "Inter_P6_FMSM_FM_SM_September_2024_MTP_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "September_2024", "text": "(d) \nFocusedDifferentiation \n(2Marks) \n(iii) A women\u2019s clothing brand recognized new opportunities and \nresearched emerging trends and consumer preferences. They \nintroduced a new clothing line, received positive feedback frominitial \ntrials, and grew through strategic partnerships and targeted \nadvertising.Whatstrategicchoicebestdescribesthisapproach?"}, {"source_file": "Inter_P6_FMSM_FM_SM_September_2024_MTP_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "September_2024", "text": "(a)TechNova, a leading software development firm known for its cutting-edge \noperating systems, is developing a groundbreaking new platform. \nElectroWave, an emerging player in the electronics and hardware \nindustry, specializes in manufacturing advanced devices. TechNova and \nElectroWavehavedecidedtojoinforcestodesigninnovativelaptops \nand smartphones, aiming to tap into new markets and broaden their \nbusiness horizons. What kind of external growth strategy is being \nconsideredbyTechNovaandElectroWave? \n(5Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_September_2024_MTP_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "September_2024", "text": "(b) \nVikram Patel owns a chain of ten bookstores across the Mumbai region. \nThree of these stores were launched in the past two years. He hasalways \nbelieved in strategic management and enjoyed robust sales of books, \nmagazines, and educational materials until about five years ago. \nHowever,withtheincreasingpreferenceforonlineshopping,thesales \nat his \nphysical stores have declined by approximately sixty percent over the last \nfive years. Analyze Vikram Patel's current position in light of the \nlimitationsofstrategicmanagement. \n(5Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_September_2024_MTP_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "September_2024", "text": "(c) \nOrion Tech Solutions Pvt. Ltd. is renowned for its ability to launch \ngroundbreaking software products. Despite the relaxed and casual work \nenvironmentatOrion,thereisastrongcommitmenttomeeting \ndeadlines.EmployeesatOrionbelieveinthe\"workhard,playhard\" ethic. The \ncompany has shifted from a formal, hierarchical structure to a more \nresults-oriented approach. Employees are deeply committed to the \ncompany\u2019s strategies and work diligently to achieve them. Theysafeguard \ninnovations and maintain strict confidentiality and secrecy in their \noperations. Their work culture is closely aligned with the organization's \nvalues, \npractices, \nand \nnorms. \nWhat \naspects \nof \nan \norganizationarebeingdiscussed?Explain. \n(5Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_September_2024_MTP_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "September_2024", "text": "(b) \nWhat are distribution channels, and why is analyzing them crucial for \nbusiness expansion? Describe the three main types of channels \nexplainingtheirrolesinensuringproductsreachcustomersefficiently \nandwiththenecessarysupport. \n(5Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_September_2024_MTP_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "September_2024", "text": "(b) \nWhich strategy is implemented by redefining the business, by enlargingits \nscope of business and substantially increasing investment in the \nbusiness?Explain the major reasons for adopting this strategy.(5 Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_September_2024_MTP_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "September_2024", "text": "(b) \nHow does the PESTLE framework assist in analyzing the macro- \nenvironment? \nOR \nA manufacturing company is in direct competition with fifteen companies \nat the national level. The head of marketing department of this company \nwishes to study the market position of rival companies by grouping them \ninto like positions. Name the tool that may be used by him/her.Explain \ntheprocedurethatmaybeusedtoimplementthetechniques.(5Marks)"}]

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+[{"source_file": "Inter_P6_FMSM_FM_SM_September_2025_MTP_1_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "September_2025", "text": "TimeAllowed\u20133Hours(Totaltimefor6Aand6B) \nMaximumMarks\u201350 \n1. \nThequestionpapercomprisestwoparts,PartIandPartII. \n2. \nPartIcomprisesCaseScenariobasedMultipleChoiceQuestions(MCQs) \n3. \nPartIIcomprisesquestionswhichrequiredescriptivetypeanswers. \n4. \nWorking note should form part of the answer. Wherever necessary, suitable assumptionsmay \nbe made by the candidates and disclosed by way of note. However, in answers to \nQuestions in Division A, working notes are not required. \nPARTI\u2013CaseScenariobasedMCQs(15Marks) \nWritethemostappropriateanswertoeachofthefollowingmultiple-choicequestionsby choosing \none of the four options given. All questions are compulsory. \n \n \nABC Ltd., a high-end furniture manufacturer specializes in classic, handcrafted designs that \ncombine style and utility. The company, which was founded with a passion for quality \ncraftsmanship and environmentally friendly methods, provides a wide variety of furniture for \nhomes and workplaces, such as dining tables, living room sets, bedroom collections, and \ncustom-built items. \nHowever, lately the company has been facing delays in product delivery due to limited storage \nand inefficient distribution. To enhance its supply chain and improve customer satisfaction, the \ncompany has decided to establish two strategically located warehouses. This move aims to \nreduce delivery time, optimize inventory management, and streamline logistics operations. \nABCLtd.previouslyreliedonasinglewarehousenearitsproductionfacility,causingbottlenecksin \norder \nfulfillment and increasing transportation costs for distant markets. After analyzing demand \ntrends and logistics inefficiencies, the company plans to set up one warehouse \u2013 Batoneither in the \nnorthern region, closer to key suppliers, and or in the southern region- Katon, nearmajor customer \nhubs. \nThefurtherdetailsofeitherofthetwowarehousestobeintroducedareasfollows: \nWarehouseBaton \nTheInitialcostofthewarehouseis`40,00,000anditsusefullifeis5years.It\u2019sannualnetsavings before \ntax is projected as follows: \nYear1:`12,00,000 \nYear2:`14,00,000 \nYear3:`10,00,000 \nYear4:`10,00,000 \nYear5:`13,00,000 \nFurther,theMid-lifemajormaintenanceisexpectedtobe`5,00,000inYear3,salvagevalue- \n`5,00,000andShutdownanddisposalcost-`1,00,000inYear5. \nWarehouseKaton: \nTheInitialcostofthewarehouseis`60,00,000anditsusefullifeis8years.It\u2019sannualnetsavings before \ntax is projected as follows: \nYear1\u20132:`10,00,000 \nYear3\u20136:`15,00,000 \nYear7\u20138:`12,00,000 \nMaintenancecostdetails: \nYear4:`2,00,000 \nYear7:`3,00,000 \nFurther,thesalvagevalueisexpectedtobe`8,00,000,andshutdownanddisposalcosttobe \n`1,50,000 in Year 8. The company is subject to tax rate of 30% and considers 10% to be \nanappropriateafter-taxcostofcapital.Thecompanyfollowsstraight-linemethodofdepreciation. \nYouarebeingafinancemanager,hasbeenaskedthefollowingquestions:"}, {"source_file": "Inter_P6_FMSM_FM_SM_September_2025_MTP_1_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "September_2025", "text": "(a) \nWarehouse Baton should be chosen as it has the lower Equivalent Annual Cost \ndespite having higher upfront cost."}, {"source_file": "Inter_P6_FMSM_FM_SM_September_2025_MTP_1_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "September_2025", "text": "(b) \nWarehouse Katon should be chosen as it has the lower Equivalent Annual Cost \ndespite having higher upfront cost."}, {"source_file": "Inter_P6_FMSM_FM_SM_September_2025_MTP_1_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "September_2025", "text": "(c) \nWarehouse Baton should be chosen as it has the lower Equivalent Annual Cost \nand upfront cost."}, {"source_file": "Inter_P6_FMSM_FM_SM_September_2025_MTP_1_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "September_2025", "text": "(d) \nWarehouse Katon should be chosen as it has the lower Equivalent Annual Cost \nandupfrontcost. \n(5x2=10Marks) \n(vi) \nA company has a debt-to-equity ratio of 2:1. It plans to raise additional capital such that \nthe overall debt-to-equity ratio becomes 1:1. Assuming the company raises only equity \nfor this purpose, by what percentage must the equity increase?"}, {"source_file": "Inter_P6_FMSM_FM_SM_September_2025_MTP_1_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "September_2025", "text": "(d) \n300% \n(2Marks) \n(vii) \nA company has annual credit sales of `6,00,00,000. The average collection period is 90 days. \nA factor offers to buy the receivables with a 2% commission. The factor will \nadvance on receivables to the company at an interest rate of 18% per annum after \nwithholding 10% as reserve. Calculate the amount of advance to be paid assuming 360 \ndays in a year."}, {"source_file": "Inter_P6_FMSM_FM_SM_September_2025_MTP_1_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "September_2025", "text": "(d) \n`1,26,06,000 \n(2Marks) \n(viii) \nA company's current market price per share is `200. It just paid a dividend of `10, and \ndividends are expected to grow at a constant rate of 5% per annum. What is the cost of \nequity as per the Dividend Discount Model (DDM)?"}, {"source_file": "Inter_P6_FMSM_FM_SM_September_2025_MTP_1_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "September_2025", "text": "(a)Profitable FMCG company PQR Ltd. is examining its dividend policy considering \npotential future investment opportunities. The company's objective is to maintaina \ngood financial strategy by balancing market valuation, financing requirements, \nand shareholder expectations. \nFollowinginformationhasbeenprovided: \nEquity Share Capital: `20,00,000 (`10 per share fully paid) Reserves \nand Surplus: `30,00,000 \nEarnings After Tax (EAT): `10,00,000 \nReturnonInvestment(r):15% \nCostofEquity(Ke):12% Market \nPrice per Share: `80 \nNumber of Equity Shares: 2,00,000 \nCurrent Debt-Equity Ratio: 0.5:1 \nPlannedInvestmentRequirement:`12,00,000(nextfinancialyear) \nThe Board of Directors of the company is considering three dividend payout \noptions. Option A \u2013 100% payout; Option B \u2013 50% payout; and Option C \u2013 0% \npayout. \nFurther,because of the market conditions, no fresh equity will be raised. Any \nfinancial shortage must be covered by debt, but not more than a 1:1 debt-to-equity \nratio. The corporate tax rate is 30%. Interest on debt is 10% per annum. \nYouarerequiredto:"}, {"source_file": "Inter_P6_FMSM_FM_SM_September_2025_MTP_1_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "September_2025", "text": "(i) \nCalculate the market price per share under each dividend payout \noptionusing Walter\u2019s Model. \n(ii) \nEvaluatethefeasibilityofinternallyfundingthe`12,00,000investment under \neach payout scenario. \n(iii) \nDeterminetherevisedDebt-EquityRatioassumingtheshortfallismet through \nborrowing if the company adopts a 50% payout. \n(iv) \nRecommendthemostsuitabledividendpolicy. \n(5Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_September_2025_MTP_1_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "September_2025", "text": "(b) \nGagan Pvt. Ltd. gives you the following information relating to the year \nending31stMarch, 2025: \n \n(1) \nCurrentRatio \n2.5:1 \n(2) \nDebt-EquityRatio \n1:2 \n(3) \nReturnonTotalAssets(AfterTax) \n15% \n(4) \nTotalAssetsTurnoverRatio \n(5) \nGrossProfitRatio \n25% \n(6) \nStockTurnoverRatio \n(7) \nNetWorkingCapital \n`15,00,000 \n(8) \nFixedAssets \n`30,00,000 \n(9) \n1,80,000EquitySharesof \n`10each \n(10) \n60,000,10%PreferenceSharesof \n`10each \n(11) \nOpening Stock \n`16,00,000 \nYouarerequiredto CALCULATE:"}, {"source_file": "Inter_P6_FMSM_FM_SM_September_2025_MTP_1_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "September_2025", "text": "(c) \nWint Limited is a mid-sized manufacturing company specializing in industrial \nequipment parts. It operates on a just-in-time procurement strategy but has \nrecently faced delays in raw material deliveries due to supply chain disruptions in \nglobal markets. To maintain production continuity, the management has decided \nto maintain slightly higher inventories and build in a contingency reserve. \nThefollowingforecastedfinancialinformationisprovidedfortheyearending31stMarch, \n2025: \n \nParticulars \nBalance as at 31stMarch, \n(`inlakh) \nBalance as at 31stMarch, \n(`inlakh) \nRawMaterial \n585 \nWork-in-progress \n455 \nFinishedgoods \n780 \nReceivables \n1,755 \n1,456 \nPayables \n884 \nAdditionaldetailsfortheyearending31stMarch,2025: \n\uf0b7 \nAnnualpurchasesofrawmaterials(oncredit):`5,200lakh \n\uf0b7 \nAnnualcostofproduction:`5,850lakh \n\uf0b7 \nAnnualcostofgoodssold(COGS):`6,825lakh \n\uf0b7 \nAnnualoperatingcost(includesadmin,manufacturing,distribution): \n`4,225lakh \n\uf0b7 \nAnnualsales(oncredit):`7,605lakh \nThe finance team is currently evaluating the company\u2019s working capital \nrequirement due to a planned expansion and potential volatility in receivables \ncollection caused by credit extensions to new clients. \nManagementwantstosetasidea10%contingencyreserveintheworkingcapital to deal with \nunforeseen cash flow constraints (e.g., delayed collections, inventory build-up, or \nsupplier hold-ups). \nAssume one year = 365 days. \nYou are required to:"}, {"source_file": "Inter_P6_FMSM_FM_SM_September_2025_MTP_1_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "September_2025", "text": "(i) \nCalculatetheNetOperatingCyclePeriod(indays). \n(ii) \nDeterminetheNumberofOperatingCyclesintheyear. \n(iii) \nCalculate the Working Capital Requirement including a 10% contingency \nreserve. \n(5Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_September_2025_MTP_1_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "September_2025", "text": "(a)MajesticLtd.,amanufacturingcompany,isevaluatingitsfinancialperformance \nand \nconsidering an expansion plan. The financial controller provides the following \ninformation for the financial year 2025: \n \nEquityShareCapital \n`10,00,000(`10pershare) \nRetainedEarnings \n`10,00,000 \n12%Debentures \n`41,66,667 \nEBIT \n`20,00,000 \nInterestExpense \n`5,00,000 \nContributionMarginRatio \n40% \nTaxRate \n30% \nOperatingLeverage \n2.5 \nFinancialLeverage \n1.333 \nCombinedLeverage \n3.333 \nWorkingCapital \n20,00,000 \nCurrentRatio \nFixedAssetTurnoverRatio \n7 \n\n \n \n \n \n \nThecompanyisnowconsideringanexpansionprojectcosting`25,00,000.Itanticipates \nthe following changes post-expansion in 2026:"}, {"source_file": "Inter_P6_FMSM_FM_SM_September_2025_MTP_1_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "September_2025", "text": "(i) \nSalesareexpectedtoincreaseby`50,00,000. \n(ii) \nVariablecostswillconstitute55%ofsales. \n(iii) \nAdditionalfixed costsdueto \nexpansionare`10,00,000.Thecompanyisevaluatingtwofinancingoptions\nfortheexpansion: \nOption 1: Raise `25,00,000 by issuing new equity shares at `10 each. \nOption 2: Raise `25,00,000 by issuing new debt at 12% interest. \nFromtheaboveinformation,youarerequiredto: \n(1) \nPrepare the Income Statement and Balance Sheet of 2025 based on the \ndataprovided. \n(3Marks) \n(2) \nComputetheEPSundereachfinancingoption. \n(2Marks) \n(3) \nComputetheOperatingLeverage,FinancialLeverageandCombined \nLeverageofboththefinancingoptions. \n(2Marks) \n(4) \nRecommendthebestfinancingoptionbasedontheEPSandimpactof \nleveragegivingreasons. \n(1Mark)"}, {"source_file": "Inter_P6_FMSM_FM_SM_September_2025_MTP_1_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "September_2025", "text": "(a) \nAcompanyissues: \n\uf0b7 \n15% convertible debentures of `100 each at par with a maturity period \nof6years.Onmaturity,eachdebenturewillbeconvertedinto2equitysharesof \nthe \ncompany. The risk-free rate of return is 8%, market risk premium is 16% \nand beta of the company is 1.20. The company has paid dividend of \n`13.38 per share. Five years ago, it paid dividend of `10 per share. \nFlotation costis 6% of issue amount. \n\uf0b7 \n5% preference shares of `100 each at premium of 10%. These shares are \nredeemable after 10 years at par. Flotation cost is 5% of issue amount. \nAssumingcorporatetaxrateis40%."}, {"source_file": "Inter_P6_FMSM_FM_SM_September_2025_MTP_1_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "September_2025", "text": "(a)A finance executive of XYZcompany claims that \u201cIncreasing the firm\u2019s current \nratio by accumulating more inventory is a sound strategy for improving working \ncapital efficiency.\u201d \nAs a financial analyst, do you agree with the statement? Justify your answer using \nrelevantworkingcapitalconcepts,andexplainthepotentialrisksassociatedwith \nthestrategymentioned. \n(4Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_September_2025_MTP_1_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "September_2025", "text": "(c) \nA company is looking to raise funds through an instrument that provides fixed \nperiodic returns to the investor but does not grant voting rights. Interestingly, this \ninstrument is considered to have characteristics of both equity and debt. It ranks \nabove equity shareholders but below debenture holders in case of liquidation. \nWhichtypeoffinancinginstrumentshouldthecompanyuseandwhy?(2Marks) \nOR"}, {"source_file": "Inter_P6_FMSM_FM_SM_September_2025_MTP_1_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "September_2025", "text": "(c)Afirmismanagingitsfinancesandaimstoensurethatithasaccesstofundsfor the long \nterm. It evaluates various sources like equity, debt, retained earnings, and also \ncredit offered by suppliers. \nWhichoftheabovementionedsourcesshouldbeclassifiedasashorttermsourceoffinanceandwhybymentioningitscharacteristicsinbrief? \n(2Marks) \nPAPER6B:STRATEGICMANAGEMENT \n1. \nThequestionpapercomprisestwoparts,PartIandPartII. \n2. \nPartIcomprisescasescenariobasedmultiplechoicequestions(MCQs) \n3. \nPartIIcomprisesquestionswhichrequiredescriptiveanswers. \n \nPARTI\u2013CasescenariobasedMCQs(15Marks) \n1. \n(A) \n(Compulsory) \n1. \n(A)Introducing\"UrbanScape Developers\", a new-age contemporary real estate \ndevelopers, reshaping urban landscapes with groundbreaking projects across \nthree dynamic Indian cities of Mumbai, Bangalore, and Delhi. \nIn the bustling metropolis of Mumbai, UrbanScape is coming up with \"CitySquare \nMall,\" a futuristic retail destination poised to redefine shopping experiences. \nBoasting state-of-the-artfacilities and amodern mix of brands, it promises to bea \nbenchmark of today\u2019s retailing, attracting shoppers from across the globe. \nIn Bangalore, UrbanScape is shaping up\"GreenVista Residency,\" an eco- \nconscious housing society that sets new standards in sustainable living. Nestedin \nthe middle of lush greenery and equipped with eco-friendly amenities, it offers \nresidents a peaceful blend of luxury and environmental responsibility. \nMeanwhile, in the vibrant capital city of Delhi, UrbanScape is building \"MetroBiz \nInstitute\", a global-desi MBA college dedicated to nurturing the leaders of \ntomorrow. With innovative curriculum, industry-aligned programs, and world-class \nfaculty, it aims to cultivate a new generation of business visionaries and \nchangemakers. \nHowever, despite these visionary projects, UrbanScape is facing challenges in \nattracting pre-bookings from potential customers. A market study revealed that \nhigh interest rates and soaring gold prices have created an environment where \nindividuals are hesitant to invest in real estate, opting instead for more liquid \nassets. \nTo tackle this issue smartly, UrbanScape initiated strategic collaborations with \nleaders in the banking sector. Leveraging their influence and expertise, they \nstrategized an effort to lobby for interest rate subsidies targeted towards new-age \ntechnology-based real estate developers like themselves. By aligning themselves \nstrategicallyandpositioningtheircauseasessentialfordrivingeconomicgrowthand \nurban \ndevelopment, they aim to generate decent demand and incentivize investment in \nthe real estate sector. \nFurthermore, they recognize the shifting dynamics of consumer behavior and \npreferencestowardsspendingmoreontravelandexperiences.Inresponse,theyare \nadopting a proactive approach to engage potential buyers in innovative \nways.Theyarelaunchinganimmersive,AI-basedwebsitethatoffersvirtualexperiences \nof \ntheir projects. Prospective buyers can explore apartments, wander through \nthemall'scorridors,orattendvirtualclassesattheMBAcollege-allfromthecomfort of their \nliving rooms. This revolutionary platform not only increases customer \nengagement but also generates significant word-of-mouth marketing, as \nimpressive visitors share their experiences with friends and family. \nWith a comprehensive strategy in place, UrbanScape Developers is navigatingthe \never-evolving real estate landscape with confidence and foresight. As they \ncontinue to shape the urban areas of India's most dynamic cities, the future holds \nendless possibilities for its visionary endeavors. \nBasedontheaboveCaseScenario,answertheMultiple-ChoiceQuestions."}, {"source_file": "Inter_P6_FMSM_FM_SM_September_2025_MTP_1_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "September_2025", "text": "(i) \nTo evaluate how projects like \"CitySquare Mall\" and \"MetroBiz Institute\"are \npositioned relative to competitors in terms of market share and \nbusiness focus, which tool would help UrbanScape make informed \nstrategic decisions?"}, {"source_file": "Inter_P6_FMSM_FM_SM_September_2025_MTP_1_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "September_2025", "text": "(d) \nPESTLEAnalysis \n(2Marks) \n(ii) \nTo understand how rising interest rates and increasing gold prices are \nimpacting buyer behavior in real estate, which analytical tool should \nUrbanScape use to assess macro-environmental factors and adapt its \nstrategy accordingly?"}, {"source_file": "Inter_P6_FMSM_FM_SM_September_2025_MTP_1_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "September_2025", "text": "(d) \nAnsoffMatrix \n(2Marks) \n(iii) \nUrbanScape introduced an AI-powered website offering immersive \nexperiences of their properties to engage tech-savvy customers who prefer \nvirtualinteractions.WhatstrategicbenefitisUrbanScapemostlikely \naimingtoachievethroughthistechnologicalinvestment?"}, {"source_file": "Inter_P6_FMSM_FM_SM_September_2025_MTP_1_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "September_2025", "text": "(d) \nPriceleadershipstrategy \n(2Marks) \n(iv) \nUrbanScape\u2019s eco-friendly housing project and emphasis on innovation \nshow a strong internal culture of sustainability and forward-thinking. Which \ncomponent of the 7S Framework does this reflect?"}, {"source_file": "Inter_P6_FMSM_FM_SM_September_2025_MTP_1_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "September_2025", "text": "(v) \nAfter receiving poor pre-booking responses, UrbanScape re-evaluated its \neconomic assumptions and initiated lobbying efforts. This indicates use of \nwhich control type to verify the ongoing validity of external assumptions?"}, {"source_file": "Inter_P6_FMSM_FM_SM_September_2025_MTP_1_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "September_2025", "text": "(i) \nStarLite Electronics noticed changing consumer preferences for energy- \nefficient appliances. It invested in R&D to develop such products. Months \nlater, a new government regulation mandated energy efficiency, which it \neasilycompliedwith.WhichstrategiesbestdescribeStarLite'sapproach?"}, {"source_file": "Inter_P6_FMSM_FM_SM_September_2025_MTP_1_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "September_2025", "text": "(d) \nDefensivestrategy \n(2Marks) \n(ii) \nPrintPro\u2019s laser printer division has stable revenue and a high market \nshare,butoperatesinaslow-growingmarket.Itgeneratessteadycash \nwith minimal investment needs. Where does this division fall in the \nBCGMatrix?"}, {"source_file": "Inter_P6_FMSM_FM_SM_September_2025_MTP_1_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "September_2025", "text": "(a)ABC Corporation, a global technology company, is known for its innovative \nproducts and solutions. The company's strategic vision emphasizes being at the \nforefront of technological advancements and providing cutting-edge solutions to \nimprovepeople'sliveswithastrongcommitmenttointegrityandaccountabilityin \nall \nits \noperations. Their mission is to create products that are user-friendly, \nsustainable and contribute positively to society. Values can be derived by \nanalysing the vision and mission statements. Based on the scenario, what are the \nvaluesofABCCorporation? \n(5Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_September_2025_MTP_1_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "September_2025", "text": "(b) \nZymaTech Pvt. Ltd., a growing player in the smart home devices industry, seeks \nto increase its market share amidst strong competition fromHomeEdge, AutoNestand \nIntelliSpace. Each competitor holds a distinct edge\u2014brand loyalty, pricing \n&distribution reach and AI driven product innovation respectively. However, \nIntelliSpace faces criticism regarding post-sales service. ZymaTech, while offering \ndecent product quality, struggles with brand visibility and customer service. As a \nstrategist at ZymaTech, how would Mr. Anoj Dass apply the steps involved in \nunderstanding the competitive landscape to help the company build a sustainable \ncompetitiveadvantage? \n(5Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_September_2025_MTP_1_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "September_2025", "text": "(c) \nZephyrFit Pvt. Ltd., a startup founded by three young business graduates, \nlaunched a fitness app offering diverse wellness content, including regional \nformats like Kerala Ayurveda, Punjabi workouts and local diet plans. Initially \npopular, the company later discovered that certain regional segments incurred \nhigh costs but had low user engagement. To improve profitability, the leadership \nsold the rights to this underperforming content and halted further development in \nthese areas. Instead, they focused on widely accessed and cost-effective \nofferings. Identify and explain the type of corporate strategy adopted by the \nleadershipofZephyrFitPvt.Ltd.inthissituation. \n(5Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_September_2025_MTP_1_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "September_2025", "text": "(a)\u201cEach organization must build its competitive advantage keeping in mind the \nbusiness warfare. This can be done by following the process of strategic \nmanagement.\u201d Considering this statement, explain major benefits of strategic \nmanagement. \n(5Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_September_2025_MTP_1_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "September_2025", "text": "(b) \n\"International development is expensive and challenging\". In the context of the \nstatement, explain the internationalization of business and the steps involved in \nsuchstrategicplanning. \n(5Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_September_2025_MTP_1_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "September_2025", "text": "(b)Aarav Textiles Pvt. Ltd., a global apparel company, faced a revenue decline dueto a \npandemic. To sustain operations, it outsourced key functions like production, logistics \nand customer support. Now, it functions with a lean head office digitally \nconnected to dispersed units. What organisational structure is this? Discuss its \nfeaturesanddisadvantages. \n(5Marks)"}]

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+[{"source_file": "Inter_P6_FMSM_FM_SM_September_2025_MTP_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "September_2025", "text": "TimeAllowed\u20133Hours(Totaltimefor6Aand6B) \nMaximumMarks\u201350 \n1. \nThequestionpapercomprisestwoparts,PartIandPartII. \n2. \nPartIcomprisesCaseScenariobasedMultipleChoiceQuestions(MCQs) \n3. \nPartIIcomprisesquestionswhichrequiredescriptivetypeanswers. \n4. \nWorking note should form part of the answer. Wherever necessary, suitable assumptionsmay \nbe made by the candidates and disclosed by way of note. However, in answers to \nQuestions in Division A, working notes are not required. \nPARTI\u2013CaseScenariobasedMCQs(15Marks) \nWritethemostappropriateanswertoeachofthefollowingmultiple-choicequestionsby choosing \none of the four options given. All questions are compulsory. \nCaseScenario \nMedilab Diagnostics Pvt. Ltd., a fast-growing healthcare diagnostics chain in Maharashtra, \noperates several diagnostic centers, offering services such as pathology, radiology, and \npreventive health screenings. \nOneoftheirmostprofitablecentersinPunerecentlyexperienceddowntimeduetofailureofits \n10-year-old \nultrasound scanner. The machine has reached the end of its useful life, causing disruptions in \npatient appointments, especially in obstetrics and abdominal imaging. \nTopreventfurtherdelays,theprocurementandfinanceteamshaveevaluatedthreeoptions: \nTwo new ultrasound scanner models with identical features are available for purchase from \ndifferent brands: \n \nBrand \nCostof \nMachine \nLife of \nMachine \nMaintenanceCost \nRate of \nDepreciation \nYear1-5 \nYear6-10 \nYear11-15 \nSonex \n`7,20,000 \n15years \n`24,000 \n`34,000 \n`45,000 \n4% \nEchoMed `5,40,000 \n10years \n`36,000 \n`58,000 \n- \n6% \nThe residual value of both machines will drop by 1/3 of the purchase price in the first year, and \nthereafter shall be depreciated annually at the specified rate. \nAlternatively, EchoMed model can be taken on rent, which will be returned to the vendor after \nuse, under the following terms and conditions: \n\uf0b7 \nAnnualRentshallbepaidinthebeginningofeachyearandforfirstyearitshallbe \n`1,18,000 \n\uf0b7 \nAnnualRentforthesubsequent4yearsshallbe`1,18,500 \n\uf0b7 \nAnnualRentforthefinal5yearsshallbe`1,26,750 \nThe rental agreement can be terminated early by paying a penalty of `1,10,000. This penalty \nwould be reduced by ` 11,000 each year of the period of rental agreement. \nThecostofcapitalforMedilabDiagnosticsis12%. \nBeing a head of the finance department, you are required to answer the following question \nofthemanagement (MCQs 1 to 5): \n1. \nWhatistheresidualvalueoftheSonexandEchomedattheendoftheirlife?"}, {"source_file": "Inter_P6_FMSM_FM_SM_September_2025_MTP_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "September_2025", "text": "(d) \n`1,18,000 \n5. \nWhich is the most economical option if the machine is likely to be used for a period of 5 \nyears?"}, {"source_file": "Inter_P6_FMSM_FM_SM_September_2025_MTP_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "September_2025", "text": "(d) \nRentSonex \n6. \nABCLtd.hasthefollowingcapitalstructurebasedonmarketvalues:Equity: \n`60 lakhs \nDebt:`40lakhs \nCostofEquity(RetainedEarnings):14% \nCostofNewEquity(afteraccountingfor5%flotationcost):15%Cost of \nDebt: 10% \nCorporateTaxRate:30% \nThe company plans to raise additional capital by issuing new equity instead of using \nretained earnings. The capital structure weights will remain unchanged. What will be the \nimpact on the Weighted Average Cost of Capital (WACC)?"}, {"source_file": "Inter_P6_FMSM_FM_SM_September_2025_MTP_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "September_2025", "text": "(c) \nWACCwillincreaseonlyifdebtincreases \n(2Marks) \n7. \nAcompanyhasthefollowingdetails: \nSales \n`50,00,000 \nVariableCosts \n`30,00,000 \nFixedOperatingCosts \n`10,00,000 \nInterestExpense \n`5,00,000 \nIf sales increase by 10%, what will be the percentage increase in Earnings Per \nShare(EPS)?"}, {"source_file": "Inter_P6_FMSM_FM_SM_September_2025_MTP_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "September_2025", "text": "(d) \n40% \n(2Marks) \n8. \nXYZLtd.has thefollowingdata: \nEarnings per share (EPS): `10 \nReturn on equity (ROE): 18% \nCapitalisation rate (Ke): 15% \nDividend payout ratio: 60% \nBased on Gordon\u2019s Model, what would be the likely effect on the market price per share \nif the company increases its dividend payout ratio to 80%, assuming all other factors \nremain constant?"}, {"source_file": "Inter_P6_FMSM_FM_SM_September_2025_MTP_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "September_2025", "text": "(a)ABC Ltd. is a listed company operating in the FMCG sector. The company is \ncurrently facing a dilemma regarding its dividend policy. The financial controller \nhas been asked to prepare a report for the Board of Directors evaluating whether \nthe company should retain more profits or distribute higher dividends. \nThe following financial data is available for the year ended 31stMarch 2025: \nEarnings per share (EPS) \n: \n` 10 \nDividendpershare(proposed) \n: \n`6 \nNumberofequityshares \n: \n10,00,000 \nReturnoninvestment(r) \n: \n15% \nCostofequitycapital(Ke) \n: \n12% \nCurrentmarketpricepershare \n: \n`100 \nRetentionratio \n: \n40% \nTaxrate \n: \n30% \nCorporatebondyield:8%(forcomparisonwithcostofequity) \nFurther, the company has an investment proposal requiring `30,00,000 with an \nexpected return of 14%. If the dividend is increased to `7/share, the share priceis \nexpected to rise to `104 and if the dividend is reduced to `4/share, the share \nprice may fall to `95. The CFO believes that MM hypothesis should be followed, \nbut the Board is inclined towards Walter\u2019s model of valuation. \nYouarerequiredto:"}, {"source_file": "Inter_P6_FMSM_FM_SM_September_2025_MTP_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "September_2025", "text": "(i) \nCALCULATE the value of the share using Walter\u2019s Model, and comment \nwhether the current dividend policy is optimal. \n(ii) \nApplyGordon\u2019sModeltoESTIMATEthemarketvalueoftheshare. \n(iii) \nHOWbywayofMM\u2019sDividendIrrelevanceTheory,whetherachangein \ndividend payout (from `6 to `7 or `4) has any impact on the firm's valuation, \nassumingnotaxesandperfectcapitalmarkets. \n(5Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_September_2025_MTP_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "September_2025", "text": "(b) \nFortune Ltd. has furnished the following information relating to the year \nended31stMarch,2024and31stMarch,2025: \n \n31stMarch,2024 \n(`) \n31stMarch,2025 \n(`) \nShareCapital \n60,00,000 \n60,00,000 \nReserveandSurplus \n30,00,000 \n40,00,000 \nLongtermloan \n40,00,000 \n40,00,000 \n\uf0a8 \nNetprofitratio:8% \n\uf0a8 \nGrossprofitratio:20% \n\uf0a8 \nLong-termloanhasbeenusedtofinance40%ofthefixedassets. \n\uf0a8 \nStockturnoverwithrespecttocostofgoodssoldis4. \n\uf0a8 \nDebtorsrepresent90daysofcreditsales. \n\uf0a8 \nThecompanyholdscashequivalentto1\u00bdmonthscostofgoodssold. \n\uf0a8 \nIgnoretaxationandassume360daysinayear. \n\uf0a8 \nAllsalesarecreditsales. \nYou are required to PREPARE Balance Sheet as on 31stMarch, 2025 in the \nfollowing format: \n \nLiabilities \n(`) Assets \n(`) \nShareCapital \n- FixedAssets \n- \nReserveandSurplus \n- SundryDebtors \n- \nLong-termloan \n- ClosingStock \n- \nSundryCreditors \n- Cashinhand \n- \n(5 Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_September_2025_MTP_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "September_2025", "text": "(c) \nABC Ltd. has the following capital structure, which is considered to be optimumas \non 31stMarch, 2025. \n \nParticulars \nAmount(`) \n14%Debentures \n60,000 \n11%Preferenceshares \n20,000 \nEquityShares(10,000shares) \n3,20,000 \n4,00,000 \nThe company share has a market price of `19.67. Next year dividend per \nshareis50%ofyear2024EPS.FollowingistheuniformtrendofEPSforthepreceding10 years \nwhich is expected to continue in future: \n \nYear \nEPS (`) \nYear \nEPS (`) \n1.00 \n1.61 \n1.10 \n1.77 \n1.21 \n1.95 \n1.33 \n2.15 \n1.46 \n2.36 \nThe company issued new debentures carrying 16% rate of interest and the current \nmarket price of debenture is ` 96. \nPreference shares of `9.20 (with annual dividend of ` 1.1 per share) were also \nissued. The company is in 50% tax bracket. \n(A) \nCALCULATEaftertax:"}, {"source_file": "Inter_P6_FMSM_FM_SM_September_2025_MTP_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "September_2025", "text": "(i) \nCostofnewdebt \n(ii) \nCostofnewpreferenceshares \n(iii) \nCostofnewequityshare(assumingnewequityfromretainedearnings) \n(B) \nCALCULATEmarginalcostofcapitalwhennonewsharesareissued. \n(C) \nDETERMINE the amount that can be spent for capital investment before new \nordinarysharesmustbesold.Assumingthattheretainedearningsfornext year\u2019s \ninvestment is 50 percent of 2024. \n(D) \nCOMPUTEmarginalcostofcapitalwhenthefundexceedstheamount \ncalculatedin(C),assumingnewequityisissuedat` 25pershare. \n(5Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_September_2025_MTP_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "September_2025", "text": "(a)ABCEngineeringLtd.,amid-sizedcapital-intensivemanufacturingcompany,is \nevaluatingtherisk-returnprofileofitsoperations.Thecompanycurrentlyoperates at 75% of \nits production capacity. The following information relates to its current operations: \nIncomeStatementat75%Capacity \n \nParticulars \nAmount(`) \nSalesRevenue \n7,50,00,000 \nVariableCost \n4,50,00,000 \nFixedOperatingCosts \n1,20,00,000 \nEBIT(EarningsBeforeInterest&Tax) \n? \nInterestonDebt(12%Debentures) \n? \nEBT(EarningsBeforeTax) \n? \nTaxRate \n30% \nAdditionalInformation: \n1. \nThecompanyhasequitysharecapitalof`2,00,00,000(sharesof`10each, fully \npaid-up). \n2. \nThe current Debt-Equity ratio is 0.75:1, and the company is considering \nincreasing its production to 90% capacity. \n3. \nAt90%capacity: \n- \nSalesandvariablecostperunitwillincreaseproportionately. \n- \nFixed operating costs will increase by `10,00,000 due to additional \nmaintenance, supervisory staff, and overheads. \n- \nTo finance the additional working capital and fixed overheads, the \ncompany is considering issuing additional`50,00,000 in 13% \ndebentures. \n4. \nThe management wants to analyze the impact of increased capacity on \nOperating Leverage, Financial Leverage, and Combined Leverage and the \nchange in EPS (Earnings Per Share) under the new financial plan. \nYouarerequiredto:"}, {"source_file": "Inter_P6_FMSM_FM_SM_September_2025_MTP_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "September_2025", "text": "(b) \nCALCULATE Degree of Operating Leverage (DOL), Degree of \nFinancial Leverage (DFL) and Degree of Combined Leverage \n(DCL). \n(ii) \nAt90%CapacitywithRevisedFinancialPlan"}, {"source_file": "Inter_P6_FMSM_FM_SM_September_2025_MTP_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "September_2025", "text": "(b) \nRevisedEPS. \n(iii) \nADVICE as to whether the company proceed with the capacity expansion \nanddebtissue. \n(5Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_September_2025_MTP_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "September_2025", "text": "(b) \nThefollowingdataarepresentedinrespectofExcellentAutomationLtd.: \n \n(`) \nProfitbeforeinterestandtax \n78,00,000 \nLess:Interestondebentures@12% \n18,00,000 \nProfitbeforetax \n60,00,000 \nLess:Incometax@50% \n30,00,000 \nProfitAftertax \n30,00,000 \nNo.ofequityshares(of`10each) \n12,00,000 \nEPS \n2.5 \nPERatio \nMarketpricepershare \nThecompanyisplanningtostartanewprojectrequiringatotalcapitaloutlayof \n`60,00,000. You are informed that a debt equity ratio (D/D+E) higher than 35%, \npushestheKeupto12.5%,meansreducingthePEratioto8andrisestheinterest \nrateonadditionalamountborrowedto14%.FINDOUTtheprobablepriceofshareif:"}, {"source_file": "Inter_P6_FMSM_FM_SM_September_2025_MTP_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "September_2025", "text": "(a)Oggy Limited hasa currentcreditsales of ` 7,20,000. It is considering revising its credit \npolicy. The proposed terms of credit will be\"2/10, net 30\" against the present \npolicy of \u201cnet 30\u201d. \nAsaresult,OggyLimited\u2019screditsalesareexpectedtoincreaseby`20,000and the average \ncollection period will reduce from 30 days to 20 days. It is also expected that \n50 percent of the customers will take the discounts and pay on the 10thday and \nrest of the customers will pay on the 30thday. Bad debt losses will remain at 2 \npercent of sales. The variable cost ratio is 70 percent. \nIts corporate tax rate is 50 percent and opportunity cost of investment in \nreceivables is 10 percent. \nADVISEwhetherOggyLimitedshouldchangeitscreditperiod?(8Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_September_2025_MTP_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "September_2025", "text": "(a)ABCLtd.isevaluatingtwoinvestmentopportunities.ProjectXoffershighshort- \nterm \naccounting profits with aggressive cost-cutting measures, while Project Y \nprovides lower immediate profits but improves customer satisfaction, brand \nloyalty, and long-term cash flows. \nAs a financial manager, WHICH project should the company choose to ensure \nvalue creation? JUSTIFY your answer by comparing the concepts of profit \nmaximization,wealthmaximization,andvaluecreation. \n(4Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_September_2025_MTP_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "September_2025", "text": "(b) \nIs there any difference between crowd funding and peer to peer lending? EXPLAIN \nbriefly. \n(4Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_September_2025_MTP_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "September_2025", "text": "(c) \nA company is currently debt-free and is considering raising `10 crore. As a finance \nmanager, what practical factors would you evaluate before deciding whether to \nraisefundsthroughdebt,equity,oramixofboth?JUSTIFYyourapproachbriefly. \n(2Marks) \nOR"}, {"source_file": "Inter_P6_FMSM_FM_SM_September_2025_MTP_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "September_2025", "text": "(c)A company owns a large asset (a commercial building) and is facing a cash \ncrunch. The CFO suggests a sale and leaseback arrangement. As a finance \nstudent,WHATpracticalbenefitsandriskswouldyouconsiderbeforesupportingthisdecision\n? \n(2Marks) \nPAPER6B:STRATEGICMANAGEMENT \n1. \nThequestionpapercomprisestwoparts,PartIandPartII. \n2. \nPartIcomprisescasescenariobasedmultiplechoicequestions(MCQs) \n3. \nPartIIcomprisesquestionswhichrequiredescriptivetypeanswers. \nPART I \u2013 Case scenario based MCQs (15 \nMarks)Question 1. (A) \n(Compulsory) \n1. \n(A)Nav-Uday Electric Mobility Pvt. Ltd., a family-led company based in Pune, began its \njourney in 1998 as a modest battery manufacturer. Under the leadership of its \nfounder,Mr.PrakashDeshmukhandlaterhischildren,thecompanyevolvedinto \na \nrespected player in the electric two-wheeler segment, especially catering to semiurbanandtier-2marketsinIndia.Theirelectricscootersearnedareputationfor being sturdy, \naffordable and well-suited to Indian road conditions. With a loyal customer \nbaseandanextensivedealernetwork,Nav-Udayenjoyedsteadygrowth for many years. \nHowever, by 2020, the Indian EV landscape started changing rapidly. International \nplayers such as Volterra Motors from Germany and HwaRide from South Korea \nentered the market with AI-enabled features, aspirational designs and strategic e- \ncommerce partnerships. Their sleek, tech-savvy scooters captured the attentionof \nIndia\u2019s urban youth and redefined customer expectations. Nav-Uday, which had \ntraditionally focused on functionality and affordability, found itself losing \nmomentum in the face of this disruption. \nRecognizing the challenges, Nav-Uday\u2019s leadership initiated a comprehensive \nstrategicreview.Itbecameevidentthatwhilethecompanymaintainedstrong \nrelationships and a value-driven culture, it had not kept pace with emerging market \ntrends and global innovations. The organization\u2019s rigid functional structure, outdated \ninformation systems and conservative decision-making processes hindered its \nability to adapt quickly. Employees, though skilled in cost-effective engineering, \nlacked exposure to global design thinking and user-centric innovation. \nThe review also identified key stakeholders\u2014such as dealers, regulatory \nauthorities and financial partners\u2014whose growing influence needed to be \naddressed through stronger engagement and alignment with the company\u2019s future \ngoals. Three strategic alternatives emerged from the analysis are (1) Targeting \nlesscompetitiveinternationalmarketslikeAfricaandSoutheastAsiaforexports; \n(2) Becoming a contract manufacturer for global EV brands entering India; (3) \nMonetizing their patented battery-swapping technology by licensing it within the \nEV ecosystem. \nNav-Uday chose a hybrid path, combining the second and third options. They began \nmanufacturing for international players while licensing their underutilized battery- \nswappingtechnologyglobally.Thisdualstrategyallowedthecompanytodiversifyitsrevenue\nstreamswithlowercapitalriskwhileplayingtoitsengineeringstrengths. \nTo support this strategic shift, the company restructured its operations, \nimplemented agile processes, adopted integrated information systems and \nempowered leaders across departments to make faster, data-driven decisions. \nThey also onboarded professionals with global exposure and established \ninnovation-focused teams. \nBy balancing tradition with transformation, Nav-Uday is now better positioned to \ncompete on a global scale. While staying rooted in its core values of trust and \nreliability, the company has embraced adaptability, innovation and collaboration \nas cornerstones ofits future growth. \nBasedontheaboveCaseScenario,answertheMultiple-ChoiceQuestions."}, {"source_file": "Inter_P6_FMSM_FM_SM_September_2025_MTP_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "September_2025", "text": "(i) \nBased on Mendelow's Matrix, how would you categorize Dealers in the \ncase of Nav-Uday, who have significant influence and expect alignment \nwith the company\u2019s future strategy?"}, {"source_file": "Inter_P6_FMSM_FM_SM_September_2025_MTP_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "September_2025", "text": "(d) \nHighPower\u2013HighInterest(KeyPlayers) \n(2Marks) \n(ii) \nWhen Nav-Uday onboarded professionals withglobal exposureand \nestablished innovation-focused teams, it primarily impacted which \u201cS\u201d in \nthe 7S Model?"}, {"source_file": "Inter_P6_FMSM_FM_SM_September_2025_MTP_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "September_2025", "text": "(d) \nStructure \n(2Marks) \n(iii) \nIn the context of Porter\u2019s Five Forces, the entry of Volterra Motors and \nHwaRide into the Indian EV market represents:"}, {"source_file": "Inter_P6_FMSM_FM_SM_September_2025_MTP_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "September_2025", "text": "(d) \nRivalryamongexistingcompetitors \n(2Marks) \n(iv) \nNav-Uday\u2019s decision to export to less competitive international markets like \nAfrica and Southeast Asia would primarily be classified as:"}, {"source_file": "Inter_P6_FMSM_FM_SM_September_2025_MTP_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "September_2025", "text": "(i) \nGreenSprout Organics, a sustainable agriculture company, offers a range \nof eco-friendly farming products. Its portfolio includes mature products \ngenerating steady cash flow and several new offerings with high growth \npotential. Recently, GreenSprout launched a cutting-edge organic bio- \nfertilizer in a rapidly expanding market. In which quadrant of the BCG \nMatrix would this new product most likely be placed?"}, {"source_file": "Inter_P6_FMSM_FM_SM_September_2025_MTP_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "September_2025", "text": "(d) \nStar \n(2Marks) \n(ii) \nIn his pursuit to expand the family business to Dubai, Dharam Veer Singh, \nthe successor of the renowned architect Late Shri Lala Ram Pal Singh, \nfaced a dilemma. Despite receiving positive feedback from various \npotential investors, a common trend emerged where the emphasis was \nprimarily on swift construction, neglecting the importance of structural \nlongevity. Dharam finds himself at a crossroads. What strategic approach \ncould assist him in formulating a robust and coherent business roadmap \nthat aligns with his vision for sustainable growth?"}, {"source_file": "Inter_P6_FMSM_FM_SM_September_2025_MTP_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "September_2025", "text": "(d) \nValues/Valuesystem \n(2Marks) \n(iii) \nA tech startup wants to enter a new market by introducing a new AI- \npowered product to an entirely new customer segment. Which strategic \noption best represents this move?"}, {"source_file": "Inter_P6_FMSM_FM_SM_September_2025_MTP_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "September_2025", "text": "(a)ABC Corp, a multinational consumer electronics company, is planning to expand its \noperations into a new country. The company's senior management is \nevaluating the potential risks and opportunities of entering this new market. As \npart of their analysis, they decide to use the PESTLE framework to assess the \nexternal factors that could impact their decision. How can thePESTLE frameworkhelp \nABC Corp assess the external factors affecting its decision to expand into a \nnewcountry? \n(5Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_September_2025_MTP_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "September_2025", "text": "(b) \nA leading smartphone manufacturer has partnered with a reputed software firm to \njointly develop a next-generation AI-enabled operating system. Both companies \nmaintain their independent operations but collaborate closely on product design, \ndevelopment, and marketing. The partnership aims to leverage shared resources, \ncomplementary expertise and expanded market access for mutual benefit. Identifyand \nexplain the form of cooperative strategy being used in this scenario. \n(5Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_September_2025_MTP_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "September_2025", "text": "(c) \nGreenEdge Solutions, a mid-sized technology company, has implemented a new \nstrategicplanfocusedonachievingsustainablegrowthandstrengtheningits \nmarketpresence.Theleadershipteamisdeterminedtomonitortheeffectiveness \nof \ntheir \nstrategies to ensure they align with the organization\u2019s overall goals and \nobjectives. They seek a systematic approach to assess key performance areas \ncritical to their success. What are Strategic Performance Measures (SPM), and \nhow can GreenEdge Solutions effectively use them to evaluate and enhance the \nsuccessoftheirstrategicplan? \n(5Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_September_2025_MTP_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "September_2025", "text": "(a)Imagine you are astrategic consultant advising a retail company that is facing \nincreasing competition from online retailers. The company is considering several \nstrategic options to improve its market position. Using the concept that strategy is \npartly proactive and partly reactive, explain how the company can develop a \nstrategicapproachtoaddressthischallenge. \n(5Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_September_2025_MTP_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "September_2025", "text": "(b) \nChangesinenvironmentalforcesoftenrequirebusinessestomakemodifications \nin their \nexisting strategies. In view of the same explain the areas to be focused while \nconsidering concept of strategic change. Also explain the steps to initiate \nstrategicchangeprocess. \n(5Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_September_2025_MTP_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "September_2025", "text": "(a)CDE Holdings operates in various sectors, including manufacturing fitness \nequipment,organicfoods,eco-friendlyproductsandchildren'seducationaltools.The \norganization is currently in the process of recruiting Chief Executive Officer.In this \nscenario imagine yourself as a HR consultant for CDE Holdings. Identify the \nstrategic level that encompasses this role within CDE Holdings. Provide an \noverview of the key duties and responsibilities falling under the Chief Executive \nOfficer'sscope. \n(5Marks)"}, {"source_file": "Inter_P6_FMSM_FM_SM_September_2025_MTP_2_Questions.pdf", "subject": "FM", "doc_type": "MTP", "attempt_period": "September_2025", "text": "(b) \nHow can Mendelow's Matrix be used to analyze and manage the stakeholders \neffectively? \nOR \nA beverage company is launching a new line of energy drinks targeted at health- \nconscious consumers. The strategic manager wants to study the market position of rival \ncompanies in the energy drink segment. Which tool can be used for this analysis, and \nwhatistheproceduretoimplementiteffectively? \n(5Marks)"}]

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+[{"source_file": "Paper_6A_PYP_May_2025.pdf", "subject": "FM", "doc_type": "PYP", "attempt_period": "May_2025", "text": "Question No. 1 is compulsory. \nAttempt any two questions out of the remaining three questions. \nIn case, any candidate answers extra question(s)/ sub-question(s) over and \nabove the required number, then only the requisite number of questions first \nanswered in the answer book shall be valued and subsequent extra \nquestion(s) answered shall be ignored. \nWorking notes should form part of the answer."}, {"source_file": "Paper_6A_PYP_May_2025.pdf", "subject": "FM", "doc_type": "PYP", "attempt_period": "May_2025", "text": "(a) The following information is available for S Ltd. for the year ended  \n31st March, 2025: \nRaw Material consumed  \n20% of COGS \nRaw Material Inventory turnover ratio \n4.00 \nFinished Goods Inventory holding period  \n0.75 month \nGross profit (based on COGS)  \n12.50% \nDebtor collection period (all sales are credit sales) \n3 months \nProprietary ratio \n0.3125 \nFixed Assets turnover ratio (based on sales) \n3.00 \nFixed Assets to Total Assets \n40% \n \nYou are required to prepare a Balance Sheet as on 31st March, 2025 in the \nfollowing format: \nLiabilities  \n` Assets \n` \nShareholders\u2019 Fund (assume \nno Preference Shares) \n Fixed Assets \n12,00,000 \nLong-term Debt  \n15,00,000 Stock of Raw Material \n \nCurrent Liabilities  \n Stock of Finished Goods \n \n \n Debtors  \n \n \n Cash \n \nTotal \n Total \n \n(5 Marks) \n\u00a9The Institute of Chartered Accountants of India"}, {"source_file": "Paper_6A_PYP_May_2025.pdf", "subject": "FM", "doc_type": "PYP", "attempt_period": "May_2025", "text": "(b) Y Ltd. produces energy drinks in different flavours. Due to high demand of its \nproduct, the rate of return on its earnings is 25%. Currently, the company \nretains 60% of its earnings and distributes the rest. The current P/E ratio is 8 \nand earnings per share is ` 10. \n \nAccording to Gordon's Model:"}, {"source_file": "Paper_6A_PYP_May_2025.pdf", "subject": "FM", "doc_type": "PYP", "attempt_period": "May_2025", "text": "(i)  What will be retention ratio if the company wants to maintain its P/E \nratio to 12 in current year, given that the expected rate of return for an \ninvestor is 20%? \n(2 Marks) \n(ii)  What will be the expected price per share after one year if Y Ltd. achieves \nabove-mentioned targeted P/E ratio?  \n(1 Mark) \n(iii)  Will there be any change in retention ratio if the company wants to \nmaintain its P/E ratio to 10 in current year, given that the expected rate \nof return for an investor is 17.50%?  \n(2 Marks)"}, {"source_file": "Paper_6A_PYP_May_2025.pdf", "subject": "FM", "doc_type": "PYP", "attempt_period": "May_2025", "text": "(c) Following information relates to A Ltd. for the year ended 31st March, 2025: \nProfit volume ratio \n24% \nOperating leverage \n2.00 \nFinancial leverage \n1.50 \nInterest Expenses \n` 12,000 \nTax rate \n30% \nNumber of Equity Shares \n1,000 \nYou are required to:"}, {"source_file": "Paper_6A_PYP_May_2025.pdf", "subject": "FM", "doc_type": "PYP", "attempt_period": "May_2025", "text": "(i)  Prepare Income Statement for the year ended 31st March, 2025. \n(ii)  Calculate EPS. \n(iii)  Calculate percentage change in earnings per share, if sales increase by \n5%. \n(2 + 1 + 2 = 5 Marks)"}, {"source_file": "Paper_6A_PYP_May_2025.pdf", "subject": "FM", "doc_type": "PYP", "attempt_period": "May_2025", "text": "(a)  Capital structure of B Ltd. for the year ended 31st March, 2025 are as follows:  \nParticulars \nAmount (`) \nEquity share capital @`10 each \n14,00,000 \n10% Preference share capital @`1,000 each \n10,00,000 \nDebenture @ `100 each \n9,60,000 \nBank Loan \n6,40,000 \n\u2022 \nRisk-free rate of return is 14%, Market rate of return is 19% and beta of \ncompany is 1.20. \n\u2022 \n10% Preference shares are redeemable at ` 1,065.40 after 3 years. \n\u2022 \nInterest on bank loan is 1.30 times of interest on debentures. \n\u2022 \nDebentures are redeemable at par after 5 years. Floatation cost is ` 4 \nper debenture. \n\u2022 \nTax rate is 30%. \n\u00a9The Institute of Chartered Accountants of India\n\u2022 \nCost of capital is 14%. \nYou are required to calculate the following:"}, {"source_file": "Paper_6A_PYP_May_2025.pdf", "subject": "FM", "doc_type": "PYP", "attempt_period": "May_2025", "text": "(i)  Cost of Equity. \n(ii)  Cost of preference share using YTM method. \n(iii)  Post-tax cost of debenture using approximation method. \n(iv)  Interest rate of bank loan. \nPV factors @ 10% and 14% \nYear \n2 \n4 \nPVIF0.10, t \n0.909 \n0.826 \n0.751 \n0.683 \nPVIF0.14, t \n0.877 \n0.769 \n0.675 \n0.592 \n(1 + 2 + 3 + 2 = 8 Marks)"}, {"source_file": "Paper_6A_PYP_May_2025.pdf", "subject": "FM", "doc_type": "PYP", "attempt_period": "May_2025", "text": "(b) Following details are related to H Ltd.: \nEPS \n` 3.00 \nReturn on investment \n20% \nCost of equity  \n15% \n \nAs per Walter's Model, what would be the maximum and minimum price of \nshare? \n(2 Marks)"}, {"source_file": "Paper_6A_PYP_May_2025.pdf", "subject": "FM", "doc_type": "PYP", "attempt_period": "May_2025", "text": "(a) Following data are given for a capital project: \nAnnual interim cash inflows for first two years \n` 1,00,000 \nAnnual interim cash inflows for next two years \n` 80,000 \nUseful life \n4 Years \nSalvage value at end of the project \n` 50,000 \nInternal rate of return \n12% \nCost of capital  \n10% \nYou are required to calculate the following:"}, {"source_file": "Paper_6A_PYP_May_2025.pdf", "subject": "FM", "doc_type": "PYP", "attempt_period": "May_2025", "text": "(v)  MIRR \nYear \n2 \n4 \nPVIF0.09, t \n0.917 \n0.842 \n0.772 \n0.708 \nPVIF0.10, t \n0.909 \n0.826 \n0.751 \n0.683 \nPVIF0.11, t \n0.901 \n0.812 \n0.731 \n0.659 \nPVIF0.12, t \n0.893 \n0.797 \n0.712 \n0.636 \nPVIF0.10, t \n1.100 \n1.210 \n1.331 \n1.464 \nPVIF0.12, t \n1.120 \n1.254 \n1.405 \n1.574 \n(1 + 1 + 1 + 1 + 2 = 6 Marks)"}, {"source_file": "Paper_6A_PYP_May_2025.pdf", "subject": "FM", "doc_type": "PYP", "attempt_period": "May_2025", "text": "(b) Z Ltd. is an unlevered company. It wants to repurchase its equity shares of  \n` 300 lakhs by issue of 12% debentures of same amount. Current market \nvalue of Z Ltd. is ` 1,400 lakhs. Its cost of capital is 18%. The company will \n\u00a9The Institute of Chartered Accountants of India\nmaintain same level of EBIT in future years. Dividend pay-out ratio is 100%. \nCompany pays tax at a rate of 30%. \n \nAs per Modigliani and Miller approach, due to such change in capital \nstructure, what will be impact on the following?"}, {"source_file": "Paper_6A_PYP_May_2025.pdf", "subject": "FM", "doc_type": "PYP", "attempt_period": "May_2025", "text": "(i)  Market Value of Z Ltd. \n(ii)  Overall cost of capital \n(iii)  Cost of equity \n(4 Marks)"}, {"source_file": "Paper_6A_PYP_May_2025.pdf", "subject": "FM", "doc_type": "PYP", "attempt_period": "May_2025", "text": "(a)  What is agency cost and what are its types? How can a company minimize \nagency cost and align the interest of manager and shareholder? (4 Marks)"}, {"source_file": "Paper_6A_PYP_May_2025.pdf", "subject": "FM", "doc_type": "PYP", "attempt_period": "May_2025", "text": "(c)  What is hierarchy of financing under 'Pecking Order' theory, and why does it \nexist?  \n(2 Marks) \n \n \n\u00a9The Institute of Chartered Accountants of India\n\n \n \nFINANCIAL MANAGEMENT AND \n \nSTRATEGIC MANAGEMENT \nOR"}, {"source_file": "Paper_6A_PYP_May_2025.pdf", "subject": "FM", "doc_type": "PYP", "attempt_period": "May_2025", "text": "(c)  \"The total risk of any business is the combination of degree of operating and \nfinancial risk\". In the light of the above statement, you are required to \nconsider the first two columns of the given table and give your comments in \nthe 3rd column. \n \nYour comments should depict the total risk profile by using the most \nappropriate amongst the following three words only: \n \nLower, Higher and Moderate \n \nAlso select the best combination of DOL and DFL from the given table. \nDOL  \nDFL \nComments \nLow \nHigh \n \nHigh \nLow \n \nHigh \nHigh \n \n(2 Marks)"}]

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+[{"source_file": "Paper_6_PYP_Jan_2025.pdf", "subject": "FM", "doc_type": "PYP", "attempt_period": "Jan_2025", "text": "Part II \nQuestion No. 1 is compulsory. \nAttempt any two questions out of the remaining three questions. \nIn case, any candidate answers extra question(s)/ sub-question(s) over and \nabove the required number, then only the requisite number of questions first \nanswered in the answer book shall be valued and subsequent extra \nquestion(s) answered shall be ignored. \nWorking notes should form part of the answer."}, {"source_file": "Paper_6_PYP_Jan_2025.pdf", "subject": "FM", "doc_type": "PYP", "attempt_period": "Jan_2025", "text": "(i)  Estimated monthly sales: \nMonth \n` in Lakh \nApril-2024 \nMay-2024 \nJune-2024 \nJuly-2024 \nAugust-2024 \nSeptember-2024 \n(ii)  Gross Profit Ratio is 20%. \n(iii)  Cost of Goods sold is paid in next month. \n(iv)  Sales are in credit and credit period is allowed for 2 months."}, {"source_file": "Paper_6_PYP_Jan_2025.pdf", "subject": "FM", "doc_type": "PYP", "attempt_period": "Jan_2025", "text": "(v) Indirect Expenses are paid in the same month. \nMonthly indirect expenses are as follows: \nMonth \n` in Lakh \nJune-2024 \n1.0 \nJuly-2024 \n1.2 \nAugust-2024 \n1.0 \nSeptember-2024 \n1.3 \n\n \n \nFINANCIAL MANAGEMENT AND \n \nSTRATEGIC MANAGEMENT \n(vi)  Dividend amounting September 2024, 3 Lakh will be paid in the month \nof September 2024 \n(vii) Cash Balance on 01/07/2024 was 1.5 Lakh. \n(viii)The company has to maintain minimum cash balance of 1 Lakh. If there \nis cash balance deficit in any month, company would take a temporary \nshort term loan and if cash balance exceed 2 Lakh, then company would \ninvest for short term excess amount of 2 Lakh. \n(ix)  Ignore the interest on short term loans and short term investment. \nYou are required to prepare Cash Budget for three months starting from  \nJuly 2024. \n(5 Marks)"}, {"source_file": "Paper_6_PYP_Jan_2025.pdf", "subject": "FM", "doc_type": "PYP", "attempt_period": "Jan_2025", "text": "(b)  Following is the Balance Sheet of EXIM Ltd. as on 31stMarch, 2024:  \nLiabilities \n` Assets \n` \nEquity Share Capital of ` 100 \neach \n20,00,000 Fixed Assets \n50,00,000 \nRetained Earnings \n4,00,000 Current Assets \n30,00,000 \n12.5% Debenture \n40,00,000  \n \nCurrent Liabilities  \n16,00,000  \n \n \n80,00,000  \n80,00,000 \nThe additional information is given as under: \nFixed costs per annum (exclusive interest) \n: ` 16,00,000 \nVariable operating cost ratio \n \n \n: 70% \nTotal Assets turnover ratio \n \n \n: 2.5 \nIncome tax rate  \n \n \n \n: 30% \nYou are required to calculate:"}, {"source_file": "Paper_6_PYP_Jan_2025.pdf", "subject": "FM", "doc_type": "PYP", "attempt_period": "Jan_2025", "text": "(i)  Earnings Per Share \n(ii)  Operating Leverage \n(iii)  Financial Leverage \n(iv)  Combined Leverage \n(2 + 1 + 1 + 1 = 5 Marks)"}, {"source_file": "Paper_6_PYP_Jan_2025.pdf", "subject": "FM", "doc_type": "PYP", "attempt_period": "Jan_2025", "text": "(c) Following information have been provided by LP Ltd.: \nProfit before Tax \n` 40 Lakh \nTax Rate \n30% \nEquity Share Capital (` 10) \n` 40 Lakh \nReturn on Investment \n18% \nCost of Equity \n15% \nDividend Payout Ratio \n50% \nYou are required:"}, {"source_file": "Paper_6_PYP_Jan_2025.pdf", "subject": "FM", "doc_type": "PYP", "attempt_period": "Jan_2025", "text": "(i)  to determine the price of Equity Share of the company as per Walter's \nModel; \n(ii)  to determine the Dividend Pay-out Ratio by applying Walter's Model \nassuming the price of equity share of the company is ` 48. \n \n(3+2=5 Marks)"}, {"source_file": "Paper_6_PYP_Jan_2025.pdf", "subject": "FM", "doc_type": "PYP", "attempt_period": "Jan_2025", "text": "(a)  The following information pertain to CMC Limited: \nNumber of Equity Shares \n20,00,000 \nBook Value of 10% Convertible Debentures \n` 1,00,00,000 \nBook Value of 12% Bank Term Loan \n` 25,00,000 \nMarket Price of Equity Share \n` 55 \nMarket Value of 10% Convertible Debenture  \n` 108 \nFace Value of Equity Share \n` 10 \nFace Value of 10% Convertible Debenture \n` 100 \nBeta coefficient of Equity shares of CMC Ltd.  \n1.5 \nRisk free rate of return \n4.5% \nEquity risk Premium \n9% \nRate of taxation  \n30% \nThe company expects that the share prices will rise in future at an average \nrate of 6% per annum. The 10% convertible debentures of 100 each will be \nconverted in six years' time into equity shares of the company in the ratio of \n1: 4 (4 equity shares for each debenture). \nThe market value of 12% bank term loan is at par. \n \nYou are required to calculate:"}, {"source_file": "Paper_6_PYP_Jan_2025.pdf", "subject": "FM", "doc_type": "PYP", "attempt_period": "Jan_2025", "text": "(i)  Cost of Equity Share Capital by applying Capital Asset Pricing Model \n(CAPM) Approach \n(ii)  Cost of Convertible Debenture by using approximation method, \n(iii)  Cost of Bank Term Loan \n(iv)  Weighted Average Cost of Capital using Market Value weights   \n(1+2+1+3=7 Marks)"}, {"source_file": "Paper_6_PYP_Jan_2025.pdf", "subject": "FM", "doc_type": "PYP", "attempt_period": "Jan_2025", "text": "(b) The following information pertain to MSD Limited for the year ending  \n31st March, 2024: \nParticulars \nNumber of days \nRaw material storage period  \n61 days \nWork-in -progress conversion period  \n20 days \nFinished goods storge period  \n30 days \nDebt collection period  \n45 days \nCreditors payment period  \n60 days \nThe annual operating cost (including depreciation of ` 4,80,000) was  \n` 60,00,000. Assume 360 days in a year. \nYou are required to calculate:"}, {"source_file": "Paper_6_PYP_Jan_2025.pdf", "subject": "FM", "doc_type": "PYP", "attempt_period": "Jan_2025", "text": "(i)  Operating cycle period \n(ii)  Number of operating cycles in a year \n(iii)  Amount of working capital required for the company \n \n(1 + 1 + 1 = 3 Marks) \n\n \n \nFINANCIAL MANAGEMENT AND \n \nSTRATEGIC MANAGEMENT"}, {"source_file": "Paper_6_PYP_Jan_2025.pdf", "subject": "FM", "doc_type": "PYP", "attempt_period": "Jan_2025", "text": "(a) SRT Limited manufactures steel rods and is now considering to purchase a \nnew aluminium smelting and moulding plant. This plant will have the cost \nof ` 20,00,000 to purchase and install the plant. It has a useful life of 5 years \nwith a residual value of ` 1,00,000. Production and sales from the new plant \nare expected to be 1,00,000 units per year. Other estimates are as follows: \nSelling Price  \n`150 per unit \nDirect Cost \n`100 per unit \nFixed cost (including depreciation) is ` 8,00,000 per annum. Marketing and \npromotion cost not included in the above will be ` 1,00,000 and ` 1,60,000 \nfor years 1 and 2, respectively. Additionally, investment in debtors and stocks \nwill increase in year 1 by ` 1,50,000 and ` 2,00,000, respectively. Creditors \nwill also increase by ` 1,00,000 in year 1. Thus, debtors, stocks, and creditors \nwill be recouped at the end of the fifth year. \nThe cost of capital is 18%. Corporate tax is 30% and is paid in the year in \nwhich profits are made. Depreciation is tax deductible. The company follows \nstraight line method of depreciation. \nRequired:"}, {"source_file": "Paper_6_PYP_Jan_2025.pdf", "subject": "FM", "doc_type": "PYP", "attempt_period": "Jan_2025", "text": "(i)  Calculate the Net Present Value and Profitability Index of the project. \n(ii)  Advise SRT Limited whether the plant should be purchased. \nThe PV factors at 18% are: \nYear \n2 \n4 \nPV factor \n0.847 \n0.718 \n0.609 \n0.516 \n(5 + 1 = 6 Marks) \n \n \n\n \n \nFINANCIAL MANAGEMENT AND \n \nSTRATEGIC MANAGEMENT"}, {"source_file": "Paper_6_PYP_Jan_2025.pdf", "subject": "FM", "doc_type": "PYP", "attempt_period": "Jan_2025", "text": "(b)  The equity share capital of Sky Pack Ltd. as on 31st March, 2024 was  \n` 2,00,000. The relevant ratios of the company are as follows: \nCurrent debt to Total debt \n \n \n0.35 \nTotal debt to Owner's equity \n \n \n0.65 \nFixed assets to Owner's equity  \n \n0.55 \nTotal assets turnover \n \n \n \n2.5 times \nInventory turnover \n \n \n \n10 times \nYou are required to prepare the Balance Sheet of Sky Pack Ltd. as on \n31stMarch, 2024. \n(4 Marks)"}, {"source_file": "Paper_6_PYP_Jan_2025.pdf", "subject": "FM", "doc_type": "PYP", "attempt_period": "Jan_2025", "text": "(a) ABC group of companies has five projects at different geographical \nlocations. Each project is managed by a dedicated project manager. A Chief \nExecutive Officer (CEO) is supported by a team of subject matter experts \n(SMEs) in each function at corporate level of the company. As an accepted \npractice, the authority and communication flow vertically and horizontally \nin the company. There are five common functions i.e. finance, human \nresource, operations, marketing and information technology facilitating \neach project. Each functional manager is having administrative relationship \nwith respective project manager and functional relationship with related \nSME with a clear mutual understanding of his or her roles and \nresponsibilities. Identify and explain the organizational structure best suited \nin the above scenario. State the advantages and disadvantages of the above \nstructure. \n(1+2+1+1=5 Marks)"}, {"source_file": "Paper_6_PYP_Jan_2025.pdf", "subject": "FM", "doc_type": "PYP", "attempt_period": "Jan_2025", "text": "(b)  Ecro Ltd. is an e-commerce company that specializes in selling eco-friendly \nproducts. Although the company has been doing well, it still continues \nactively to strengthen its brand identity, launch creative and impactful \nmarketing campaigns, and introduce new and innovative eco-friendly \nproducts.  \nHowever, the company has started facing increasing competition from large \nretailers who are entering the eco-friendly space. To face competition the \ncompany quickly started to adapt to the changing market conditions, \nanalyse the competitors' strategies, adopt different styles of marketing in \nresponse to competitors action and counteract competitors' pricing \nstrategies. \nDiscuss the strategic approaches taken by Ecro Ltd. in the two different \nsituations to stay competitive. Explain the strategy that Ecro Ltd. should \nadopt in future to remain competitive and gain competitive advantage. \n \n(1 + 1 + 3 = 5 Marks)"}, {"source_file": "Paper_6_PYP_Jan_2025.pdf", "subject": "FM", "doc_type": "PYP", "attempt_period": "Jan_2025", "text": "(c)  Organic Beverages has been manufacturing various soft drinks for over a \ndecade. It has developed a sugar free beverage to cater to the needs of \nspecific customers by spending heavily on research and development for \nthis product. In addition, a lot of money was spent on marketing (branded \nas 'Say no to Sugar') and in obtaining licence for it. In a span of five \nmonths, company has gained a major share in the market for this new \nproduct and it is growing rapidly. Profitability of this product is also better. \nIn order to take the advantage of best opportunity for expansion, it has to \nmake heavy investment to maintain their position in current and new \nmarket. \nClassify 'Say no to Sugar' product in the most related category in the two \ndimensional growth share matrix as per Boston Consulting Group. Explain \nthe strategies which can be pursued post identification and classification of \nproducts in such matrix. Also state the limitations of this technique as one \nof the strategic options. \n(1 + 2 + 2 = 5 Marks)"}, {"source_file": "Paper_6_PYP_Jan_2025.pdf", "subject": "FM", "doc_type": "PYP", "attempt_period": "Jan_2025", "text": "(a) \"International development is expensive and challenging\". In the context of \nthe statement, explain the internationalization of business and the steps \ninvolved in such strategic planning. \n(5 Marks)"}, {"source_file": "Paper_6_PYP_Jan_2025.pdf", "subject": "FM", "doc_type": "PYP", "attempt_period": "Jan_2025", "text": "(b)  \"Managing stakeholders is critical to the success of a project\". Explain how \nMendelow's Matrix helps in managing stakeholders and categorizing the \nstakeholders into groups. \n(5 Marks)"}, {"source_file": "Paper_6_PYP_Jan_2025.pdf", "subject": "FM", "doc_type": "PYP", "attempt_period": "Jan_2025", "text": "(a)  Outline the main levels of management generally found in an organization. \nAlso explain the types of networks of relationship between these levels and \namongst the same levels of a business. \n(3 + 2 = 5 Marks)"}, {"source_file": "Paper_6_PYP_Jan_2025.pdf", "subject": "FM", "doc_type": "PYP", "attempt_period": "Jan_2025", "text": "(b)  What do you mean by strategic performance measures? State the reasons \nfor the importance of strategic performance measures for an organization. \n(1 + 4 = 5 Marks)"}, {"source_file": "Paper_6_PYP_Jan_2025.pdf", "subject": "FM", "doc_type": "PYP", "attempt_period": "Jan_2025", "text": "(a) As per one of the five forces of competition, Michael Porter stated that the \nmore intensive is the rivalry, the less attractive is the industry. In view of \nthis, explain the conditions in which rivalry among competitors tends to be \ncut throat and industry profitability is low. \n(5 Marks)"}, {"source_file": "Paper_6_PYP_Jan_2025.pdf", "subject": "FM", "doc_type": "PYP", "attempt_period": "Jan_2025", "text": "(b)  Explain the 'product market growth matrix' as propagated by Igor Ansoff as \na device for identifying growth opportunities for the future. \n(5 Marks) \nOR"}]

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+[{"source_file": "Paper_6_PYP_Jan_2026.pdf", "subject": "FM", "doc_type": "PYP", "attempt_period": "Jan_2026", "text": "Question No. 1 is compulsory. \nAttempt any two questions out of the remaining three questions. \nIn case, any candidate answers extra question(s)/ sub-question(s) over and \nabove the required number, then only the requisite number of questions first \nanswered in the answer book shall be valued and subsequent extra \nquestion(s) answered shall be ignored. \nWorking notes should form part of the answer."}, {"source_file": "Paper_6_PYP_Jan_2026.pdf", "subject": "FM", "doc_type": "PYP", "attempt_period": "Jan_2026", "text": "(a)  From the books of AIL Limited following information is taken for the year \n2024-25: \nGross profit margin (25% of Sales) \n \n \n \n` 30,00,000 \nInventory holding period  \n \n \n \n \n28 Days \nOpening Inventory \n \n \n \n \n \n` 8,00,000 \nCurrent Ratio \n \n \n \n \n \n \n1.20 \nQuick Ratio \n \n \n \n \n \n \n0.80 \nSelling & Distribution Expenses  \n \n \n \n` 12,00,000 \nDepreciation and other Non-cash Expenses \n \n \n` 4,80,000 \nAssume 360 days in a year. \nYou are required to calculate:"}, {"source_file": "Paper_6_PYP_Jan_2026.pdf", "subject": "FM", "doc_type": "PYP", "attempt_period": "Jan_2026", "text": "(b)  X Ltd. has average debtors of ` 90,00,000. The company's average collection \nperiod is 60 days. At present, it incurs credit administration expenses of  \n` 4,00,000 per year and bad-debt losses amounting to 1% of credit sales. \n\n \n  \n S \nA factoring company has proposed to purchase these receivables by charging \na commission of 2% on credit sales. The factor will provide an advance of \n85% of receivables, after keeping 15% as reserve, and will charge interest at \n15% per annum for the collection period. Assume 360 days in a year. \nRequired:"}, {"source_file": "Paper_6_PYP_Jan_2026.pdf", "subject": "FM", "doc_type": "PYP", "attempt_period": "Jan_2026", "text": "(i)  Calculate the effective cost of factoring. \n(ii)  As a financial consultant, advise whether X Ltd. should accept the \nfactoring proposal.  \n(5 Marks)"}, {"source_file": "Paper_6_PYP_Jan_2026.pdf", "subject": "FM", "doc_type": "PYP", "attempt_period": "Jan_2026", "text": "(c)  PQR Ltd. is a leading company operating in the coal sector, engaged in the \nextraction, processing, and distribution of coal for industrial and energy \npurposes. \nThe following information is provided by the management of PQR Ltd. \nParticulars \n \nIssued Share Capital \n` 24,00,000 \nDividend Paid \n10 per Share \nGrowth Rate \n20% p.a. in perpetuity \nCost of Equity (Ke) \n25% \nYou are required to calculate:"}, {"source_file": "Paper_6_PYP_Jan_2026.pdf", "subject": "FM", "doc_type": "PYP", "attempt_period": "Jan_2026", "text": "(b)  Number of issued shares, if market price per share (MPS) is equal \nto face value per share. \n(ii)  Using Modigliani and Miller (MM) Hypothesis:"}, {"source_file": "Paper_6_PYP_Jan_2026.pdf", "subject": "FM", "doc_type": "PYP", "attempt_period": "Jan_2026", "text": "(a)  The market price of the share at the end of year if dividend is paid. \nUse the current market price calculated in Gordon model as Po."}, {"source_file": "Paper_6_PYP_Jan_2026.pdf", "subject": "FM", "doc_type": "PYP", "attempt_period": "Jan_2026", "text": "(b)  What will be the amount of earnings required for the company so \nthat the MM hypothesis holds true, if the company has made new \ninvestments of ` 5,00,000 during the period and issued 1,000 new \nequity shares? \n(5 Marks) \n \n \n\n \n \nFINANCIAL MANAGEMENT AND\n \nSTRATEGIC MANAGEMENT \n \n S"}, {"source_file": "Paper_6_PYP_Jan_2026.pdf", "subject": "FM", "doc_type": "PYP", "attempt_period": "Jan_2026", "text": "(a)  RK Limited provided following data for the year ended on 31-03-2025: \nSales \n \n \n \n \n \n` 50,00,000 \nEPS  \n \n \n \n \n \n` 2.50 \nTax Rate  \n \n \n \n \n` 40% \nFixed cost excluding interest \n \n \n` 10,80,000 \nThe Capital structure is as under: \nEquity Share capital of ` 10/- each \n \n` 18,00,000 \n10% Preference share of ` 100/- each  \n` 9,00,000 \n12% Debentures  \n \n \n \n` 75,00,000 \nYou are required to:"}, {"source_file": "Paper_6_PYP_Jan_2026.pdf", "subject": "FM", "doc_type": "PYP", "attempt_period": "Jan_2026", "text": "(i)  Calculate Earnings before Interest and Tax (EBIT). \n(ii)  Calculate Combined Leverage. \n(iii)  Advise, the level of sales where Earning before Tax (EBT) will be zero. \n(5 Marks) \n\n \n \nFINANCIAL MANAGEMENT AND\n \nSTRATEGIC MANAGEMENT \n \n S"}, {"source_file": "Paper_6_PYP_Jan_2026.pdf", "subject": "FM", "doc_type": "PYP", "attempt_period": "Jan_2026", "text": "(b)  Algo Steel Ltd. is a well-established company in the steel manufacturing \nsector, successfully operating for the past 20 years. The existing capital \nstructure comprises of 80% equity and 20% debt. Company's Cost of Equity \n(K) is 13.5%, reflecting the return expected by shareholders. Its debt \ncomponent comprises of a bank loan carrying an interest rate of 8% per \nannum. The company is subject to taxation and taxes are to be considered in \nproject evaluation. After preliminary evaluation, the Board of Directors has \nshortlisted a project with the following details: \nParticulars \n \nInitial Investment \n` 24,00,000 \nEstimated Salvage Value \n10% of Initial Investment \nExpected Life of the Project \n4 years \nTax Savings on Depreciation \n` 1,35,000 p.a. \nMethod of Depreciation \nStraight Line Method (SLM) \n \nParticulars \nYear 1 \nYear 2 \nYear 3 \nYear 4 \nExpected Cash Flows \nbefore depreciation & \ntax (in `) \n12,00,000 \n20,00,000 \n18,00,000 \n16,00,000 \nPV Factor @ 10.00% \n0.909 \n0.826 \n0.751 \n0.683 \nPV Factor @ 12.00% \n0.893 \n0.797 \n0.712 \n0.636 \nRequired:"}, {"source_file": "Paper_6_PYP_Jan_2026.pdf", "subject": "FM", "doc_type": "PYP", "attempt_period": "Jan_2026", "text": "(i)  Calculate Average Rate of Return (ARR) based on Average Investment. \n(ii)  Calculate Net Present Value (NPV) by using Weighted Average Cost of \nCapital (WACC).  \n(5 Marks)"}, {"source_file": "Paper_6_PYP_Jan_2026.pdf", "subject": "FM", "doc_type": "PYP", "attempt_period": "Jan_2026", "text": "(a)  The Balance Sheet extract of ST Ltd. as on March 31 (current year) is as \nfollows: \nLiabilities \nAmount  \n(` in lakh) \nAssets \nAmount  \n(` in lakh) \nShare capital \n260 Fixed Assets \nReserves \n168 Inventories  \nLong-term loans \n420 Receivables \nShort-term loans  \n220 Cash & bank \nPayables \nProvisions \n1,308  \n1,308 \n\n \n \nFINANCIAL MANAGEMENT AND\n \nSTRATEGIC MANAGEMENT \n \n S \nSales for the current year amounted to ` 900 lakh. For the next financial year \nending March 31 (next year), sales are expected to increase by 20%. \n \nThe net profit margin (after tax) is expected to be 5% of sales, and the \ndividend payout ratio is anticipated to be 50%. \n \nTotal assets including cash & bank and current liabilities (payables and \nprovisions) vary directly with sales. \n \nYou are required to:"}, {"source_file": "Paper_6_PYP_Jan_2026.pdf", "subject": "FM", "doc_type": "PYP", "attempt_period": "Jan_2026", "text": "(i)  Estimate the amount of external funds required (EFR) for the next \nfinancial year. \n(ii)  Determine the sources and composition of funds to meet the \nrequirement, given the following parameters: \n(1)  The current ratio must be maintained at 1.40. \n(2)  The ratio of fixed assets to long-term loans should be 1.50. \n(3)  The remaining fund is raised by issue of Equity shares. \n(4)  The additional funds are to be raised in the following order of \npreference:"}, {"source_file": "Paper_6_PYP_Jan_2026.pdf", "subject": "FM", "doc_type": "PYP", "attempt_period": "Jan_2026", "text": "(a)  Discuss briefly the key features of seed capital assistance as a source of \nfinance.  \n(4 Marks)"}, {"source_file": "Paper_6_PYP_Jan_2026.pdf", "subject": "FM", "doc_type": "PYP", "attempt_period": "Jan_2026", "text": "(b)  Why the Virtual banking service is popular among the customers?  \n \nDiscuss the advantages of Virtual Banking. \n(4 Marks) \n\n \n  \n S"}, {"source_file": "Paper_6_PYP_Jan_2026.pdf", "subject": "FM", "doc_type": "PYP", "attempt_period": "Jan_2026", "text": "(c)  Define financial distress. Briefly explain the consequences of a prolonged \nfinancial distress.  \n(2 Marks) \nOR"}, {"source_file": "Paper_6_PYP_Jan_2026.pdf", "subject": "FM", "doc_type": "PYP", "attempt_period": "Jan_2026", "text": "(c)  BEE Ltd. has a current ratio of 2:1, showing enough short-term liquidity in \nthe company. You are required to comment whether the current ratio will \nimprove, decline, or remain unchanged.  \n(2 Marks) \nSr. \nNo \nTransaction \nImpact"}, {"source_file": "Paper_6_PYP_Jan_2026.pdf", "subject": "FM", "doc_type": "PYP", "attempt_period": "Jan_2026", "text": "(i) \nA debtor owing ` 60,000 becomes insolvent and \nonly 75% is recovered in cash in full and final \nsettlement. \n \n(ii) \nIssued equity shares for ` 2,00,000, proceeds kept \nin current account with bank. \n \n(iii) \n` 25,000 collected from customers in cash. \n \n(iv) \nGoods costing 8,000 sold for ` 12,500 on credit."}, {"source_file": "Paper_6_PYP_Jan_2026.pdf", "subject": "FM", "doc_type": "PYP", "attempt_period": "Jan_2026", "text": "(a)  Full Health Limited is a beverage company engaged in the production and \ndistribution of energy drink. It plans to launch a new line of beverages \ntargeted at health-conscious consumers. The Indian energy drink market, \nhowever, is already saturated with strong competitors, including several \nwell-established national and international brands that command a \nsignificant market share. Considering the dominant position of these rival \nfirms in the segment, which analytical tool would you recommend the \nmanager to use to assess the market environment? Additionally, explain the \nprocedure for implementing this tool effectively. \n(5 Marks)"}, {"source_file": "Paper_6_PYP_Jan_2026.pdf", "subject": "FM", "doc_type": "PYP", "attempt_period": "Jan_2026", "text": "(b)  Next Tech Solutions, an IT services firm, is suffering from declining client \nretention, rising operational costs, and outdated service offerings. Employee \nmorale is low, and the firm's reputation for innovation has faded. Due to \nuncompetitive product and services, continuous losses, negative cash flow \nfrom business have alarmed investors. The board chooses not to wind up \nthe operations but to rejuvenate the organization through effective \nleadership. They appointed Mr. Moksha a young and visionary executive to \ninitiate strategic changes. What corporate strategy should Moksha adopt, \nand what measures should he take to implement this strategy effectively \nand ensure long-term sustainability? \n(5 Marks)"}, {"source_file": "Paper_6_PYP_Jan_2026.pdf", "subject": "FM", "doc_type": "PYP", "attempt_period": "Jan_2026", "text": "(c)  Mr. Rohit Khanna runs a chain of organic grocery stores under the brand \nname \"Green Basket\" in northern India. Over the past two years, he has \nfaced intense competition from large retail chains and online delivery \nplatforms offering organic products at discounted prices. Despite loyal \ncustomers, his profit margins are shrinking. On his consultant's advice, \nRohit decided to undertake a comprehensive study to understand the \ncompetitors, their vision, mission, and financial status to gain competitive \nadvantage. Identify the business analysis done by Mr. Rohit and discuss \nsteps to carry out the same. \n(5 Marks) \n \n \n\n \nFINANCIAL MANAGEMENT AND  \nSTRATEGIC MANAGEMENT \n \n \n S"}, {"source_file": "Paper_6_PYP_Jan_2026.pdf", "subject": "FM", "doc_type": "PYP", "attempt_period": "Jan_2026", "text": "(b) In a business strategy, consider a firm pursuing cost leadership to become \nthe lowest-cost producer in its industry. For this approach to be effective, \nwhat key conditions must be present? However, cost leadership is not \nwithout its pitfalls - discuss the potential disadvantages that could \nundermine its effectiveness. \n(5 Marks)"}, {"source_file": "Paper_6_PYP_Jan_2026.pdf", "subject": "FM", "doc_type": "PYP", "attempt_period": "Jan_2026", "text": "(a)  An organization should select the right strategic performance measures \nthat are aligned with its goals and objectives and provide relevant and \nactionable information. Explain all the factors and importance of these \nfactors that needs to be considered. \n(5 Marks)"}, {"source_file": "Paper_6_PYP_Jan_2026.pdf", "subject": "FM", "doc_type": "PYP", "attempt_period": "Jan_2026", "text": "(b)  Innovation is widely regarded as a catalyst for business growth, enabling \nfirms to upgrade existing products and processes, enhance customer \nsatisfaction, and improve profitability. In light of this statement explain \nwhat an innovation offers to the organisation and any risk involved in \ndoing so. \n(5 Marks)"}, {"source_file": "Paper_6_PYP_Jan_2026.pdf", "subject": "FM", "doc_type": "PYP", "attempt_period": "Jan_2026", "text": "(a)  Porter's five forces model hold that the state of competition in an industry \nis a composite of active competitive pressure in the market. Identify the \nareas of market in which competitive pressure operates. \n(5 Marks)"}, {"source_file": "Paper_6_PYP_Jan_2026.pdf", "subject": "FM", "doc_type": "PYP", "attempt_period": "Jan_2026", "text": "(b)  Objectives with a strategic focus is aimed at achieving outcomes that \nenhance an organization's overall business position and competitive \nstrength. In view of the above statement, enumerate the characteristics of \nideal objectives that are meaningful and effectively serve their intended \npurpose. \n(5 Marks) \nOR"}]

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+[{"source_file": "Paper_6_PYP_May_2024.pdf", "subject": "FM", "doc_type": "PYP", "attempt_period": "May_2024", "text": "Question No. 1 is compulsory. \nAttempt any two questions out of the remaining three questions. \nIn case, any candidate answers extra question(s)/ sub-question(s) over and \nabove the required number, then only the requisite number of questions first \nanswered in the answer book shall be valued and subsequent extra \nquestion(s) answered shall be ignored. \nWorking notes should form part of the answer."}, {"source_file": "Paper_6_PYP_May_2024.pdf", "subject": "FM", "doc_type": "PYP", "attempt_period": "May_2024", "text": "(a)  Theme Ltd provides you the following information:  \n \n12.5 % Debt  \n \n \n \n \n \n` 45,00,000 \n \nDebt to Equity ratio  \n \n \n \n \n1.5 : 1 \n \nReturn on Shareholder's fund   \n \n \n54%  \n \nOperating Ratio   \n \n \n \n \n85%  \n \nRatio of operating expenses to Cost of Goods sold \n2 : 6 \n \nTax rate  \n \n \n \n \n \n25% \n \nFixed Assets  \n \n \n \n \n \n` 39,00,000 \n \nCurrent Ratio  \n \n \n \n \n \n1.8 : 1 \n \nYou are required to calculate:"}, {"source_file": "Paper_6_PYP_May_2024.pdf", "subject": "FM", "doc_type": "PYP", "attempt_period": "May_2024", "text": "(b) Alpha Limited has provided following information: \nEquity Share Capital \n25,000 Shares @ ` 100 per Share \n15% Debentures \n10,000 Debentures@ ` 750/- per Debenture \nSales \n50 Lakhs units@ ` 20 per unit \nVariable Cost \n` 12.50 per unit \nFixed Costs \n` 175.00 Lakhs \n \nDue to recent policy changes and entry of foreign competitors in the sector, \nAlpha Limited expects the sales may decline by 15-20%, However, selling \nprice and other costs will remain the same. Corporate Taxes will \ncontinue@20%. \n \nYou are required to calculate the decrease in Earnings per share, Degree of \nOperating Leverage and Financial Leverage separately if sales are declined \nby (i) 15%; and (ii) 20%;"}, {"source_file": "Paper_6_PYP_May_2024.pdf", "subject": "FM", "doc_type": "PYP", "attempt_period": "May_2024", "text": "(c)  Following is the sales information in respect of Bright Ltd: \nAnnual Sales (90 % on credit)   \n \n \n \n` 7,50,00,000 \nCredit period \n \n \n \n \n \n \n45 days \nAverage Collection period \n \n \n \n \n70 days \nBad debts  \n \n \n \n \n \n \n0.75% \nCredit administration cost (out of which 2/5th is avoidable) ` 18,60,000 \n \nA factor firm has offered to manage the company's debtors on a nonrecourse basis at a service charge of 2%. Factor agrees to grant advance \nagainst debtors at in interest rate of 14% after withholding 20% as reserve. \nPayment period guaranteed by factor is 45 days. The cost of capital of the \ncompany is 12.5%. One time redundancy payment of ` 50,000 is required to \nbe made to factor. \n \nCalculate the effective cost of factoring to the company. (Assume 360 days in \na year)"}, {"source_file": "Paper_6_PYP_May_2024.pdf", "subject": "FM", "doc_type": "PYP", "attempt_period": "May_2024", "text": "(a)  The capital structure of Shine Ltd. as on 31.03.2024 is as under: \nParticulars \nAmount (`) \nEquity share capital off 10 each \n45,00,000 \n15% Preference share capital of f 100 each \n36,00,000 \nRetained earnings \n32,00,000 \n13% Convertible Debenture off 100 each \n67,00,000 \n11 % Term Loan \n20,00,000 \nTotal \n2,00,00,000 \nAdditional information: \n(A)  Company issued 13% Convertible Debentures of ` 100 each on \n01.04.2023 with a maturity period of 6 years. At maturity, the debenture \nholders will have an option to convert the debentures into equity shares \nof the company in the ratio of 1 : 4 (4 shares for each debenture). The \nmarket price of the equity share is ` 25 each as on 31.03.2024 and the \ngrowth rate of the share is 6% per annum. \n(B) Preference stock, redeemable after eight years, is currently selling at  \n` 150 per share. \n\n \n \nFINANCIAL MANAGEMENT AND \n \nSTRATEGIC MANAGEMENT \n(C)  The prevailing default-risk free interest rate on 10-year GOI treasury \nbonds is 6%. The average market risk premium is 8% and the Beta (\uf062) of \nthe company is 1.54. \n \nCorporate tax rate is 25% and rate of personal income tax is 20%. \nYou are required to calculate the cost of:"}, {"source_file": "Paper_6_PYP_May_2024.pdf", "subject": "FM", "doc_type": "PYP", "attempt_period": "May_2024", "text": "(b)  Following data is available in respect of Levered and Unlevered companies \nhaving same business risk: \n \nCapital employed = ` 2,00,000, EBIT = ` 25,000 and Ke = 12.5% \nSources \nLevered Company (f) \nUnlevered Company (`) \nDebt (@8%) \nEquity \n75,000 \n1,25,000 \nNil \n2,00,000 \n \nAn investor is holding 12% shares in levered company. Calculate the \nincrease in annual earnings of investor if he switches over his holding from \nLevered to Unlevered company."}, {"source_file": "Paper_6_PYP_May_2024.pdf", "subject": "FM", "doc_type": "PYP", "attempt_period": "May_2024", "text": "(a) HCP Ltd. is a leading manufacturer of railway parts for passenger coaches \nand freight wagons. Due to high wastage of material and quality issues in \nproduction, the General Manager of the company is considering the \nreplacement of machine A with a new CNC machine B. Machine A has a book \nvalue of ` 4,80,000 and remaining economic life is 6 years. It could be sold \nnow at ` 1,80,000 and zero salvage value at the end of sixth year. The \npurchase price of Machine B is ` 24,00,000 with economic life of 6 years. It \nwill require ` 1,40,000 for installation and ` 60,000 for testing. Subsidy of \n15% on the purchase price of the machine B will be received from \nGovernment at the end of 1st year. Salvage value at the end of sixth year will \nbe ` 3,20,000. \n \nThe General manager estimates that the annual savings due to installation \nof machine B include a reduction of three skilled workers with annual salaries \nof ` 1,68,000 each, ` 4,80,000 from reduced wastage of materials and \ndefectives and ` 3,50,000 from loss in sales due to delay in execution of \npurchase orders. Operation of Machine B will require the services of a trained \ntechnician with annual salary of t 3,90,000 and annual operation and \nmaintenance cost will increase by ` 1,54,000. The company's tax rate is 30% \nand it's required rate of return is 14%. The company follows straight line \nmethod of depreciation. Ignore tax savings on loss due to sale of existing \nmachine. \n \nThe present value factors at 14% are: \nYears \n1 \n3 \n5 \nPV Factor \n0.877 \n0.769 \n0.675 \n0.592 \n0.519 \n0.456 \nRequired:"}, {"source_file": "Paper_6_PYP_May_2024.pdf", "subject": "FM", "doc_type": "PYP", "attempt_period": "May_2024", "text": "(i)  Calculate the Net Present Value and Profitability Index and advise the \ncompany for replacement decision. \n(ii)  Also calculate the discounted pay-back period. \n\n \n \nFINANCIAL MANAGEMENT AND \n \nSTRATEGIC MANAGEMENT"}, {"source_file": "Paper_6_PYP_May_2024.pdf", "subject": "FM", "doc_type": "PYP", "attempt_period": "May_2024", "text": "(b)  Vista Limited's retained earnings per share for the year ending 31.03.2023 \nbeing 40% is ` 3.60 per share. Company is foreseeing a growth rate of 10% \nper annum in the next two years. After that the growth rate is expected to \nstabilize at 8% per annum. Company will maintain its existing pay-out ratio. \nIf the investor's required rate of return is 15%, Calculate the intrinsic value \nper share as of date using Dividend Discount model."}, {"source_file": "Paper_6_PYP_May_2024.pdf", "subject": "FM", "doc_type": "PYP", "attempt_period": "May_2024", "text": "(i)  Maximising Market Price Per Share (MPS) as the financial objective \nwhich maximises the wealth of shareholders. \n(ii)  A combination of lower risk and higher return is known as risk return \ntrade off and at this level of risk-return, profit is maximum. \n(iii)  Financial distress is a position when accounting profits of a firm are \nsufficient to meet its long-term obligations. \n(iv) Angel investor is one who provides funds for start-up m exchange for an \nownership/equity."}, {"source_file": "Paper_6_PYP_May_2024.pdf", "subject": "FM", "doc_type": "PYP", "attempt_period": "May_2024", "text": "(b)  ABC Ltd. is approaching the banks for financing its business activity. You are \nrequired to describe any four forms of bank credit for the consideration of \nthe company."}, {"source_file": "Paper_6_PYP_May_2024.pdf", "subject": "FM", "doc_type": "PYP", "attempt_period": "May_2024", "text": "(a) BOYA Ltd. is a venture in the market present for a decade. Till, 2023, it was \nworking on the values and vision of its founder while operating in limited \narea of operations. \n \nGrowth opportunities exist for BOYA Ltd. Considering the changing \nenvironment, company is interested to leverage new skills in marketing, \ntechnology, product development and financial management. As a known \nfact, modifying one aspect might have a ripple effect on other elements. \nThe company wants to understand various hard and soft elements \ninterrelated with each other in the company and having a bearing on \neffective operational results. \n \nAs a strategist, you intend to prepare a questionnaire based on both types \nof elements by analyzing the organizational design. The response to the \nsame will help in finding an answer to ensure effectiveness through the \ninteraction of such elements. \n \nBriefly discuss the strategic model you will use in the given situation. State \nthe limitations of the model as well. \n(2 +3 = 5 Marks)"}, {"source_file": "Paper_6_PYP_May_2024.pdf", "subject": "FM", "doc_type": "PYP", "attempt_period": "May_2024", "text": "(b)  Elvis Global is a famous OTT platform facing fierce competition from its \ncompetitors amid changing consumer preferences. This has made it difficult \nto retain customers as the existing television channels are also launching \ntheir own platforms. The company has appointed Raghav to lead the \ncompany forward as the sales & marketing manager. Raghav needs to \ndesign creative and innovative advertising campaigns to gain a competitive \nedge, engage the public and capture the market. \n \nIdentify the strategic level that represents Raghav's role at Elvis Global. As a \nstrategic advisor, highlight the various benefits of strategic management in \novercoming different challenges to Raghav.  \n(1 +4 = 5 Marks)"}, {"source_file": "Paper_6_PYP_May_2024.pdf", "subject": "FM", "doc_type": "PYP", "attempt_period": "May_2024", "text": "(c) Yash is planning to launch his new tech start-up. He is exploring different \nlocations across the country to establish his company in the right business \nenvironment. One option is the city of Bengaluru, the silicon valley of India, \n\n \nFINANCIAL MANAGEMENT AND  \nSTRATEGIC MANAGEMENT \nwith an engaging network of entrepreneurs, investors, advisors and \nmentors. Coupled with various subsidies for new ventures and tax benefits, \nBengaluru might be an ideal choice for Yash to establish his company and \nincrease the chances of success.  \n \nDefine the term Business Environment with respect to the above scenario. \nExplain the different ways in which the interaction of a business with its \nenvironment can be helpful in developing a successful strategy. \n \n(1 +4 = 5 Marks)"}, {"source_file": "Paper_6_PYP_May_2024.pdf", "subject": "FM", "doc_type": "PYP", "attempt_period": "May_2024", "text": "(a) \u2018Innovation leads to unnecessary expenses that do not give as many \nreturns.\u2019 Do you agree with the statement? Give reasons in support of your \nanswer. \n(1 + 4 = 5 Marks)"}, {"source_file": "Paper_6_PYP_May_2024.pdf", "subject": "FM", "doc_type": "PYP", "attempt_period": "May_2024", "text": "(b) Explain how organizations can effectively manage strategic uncertainties in \na rapidly changing business environment. \n(5 Marks)"}, {"source_file": "Paper_6_PYP_May_2024.pdf", "subject": "FM", "doc_type": "PYP", "attempt_period": "May_2024", "text": "(a) What are the key characteristics of business products that contribute to the \noverall competitiveness and dynamics of the market? \n(5 Marks)"}, {"source_file": "Paper_6_PYP_May_2024.pdf", "subject": "FM", "doc_type": "PYP", "attempt_period": "May_2024", "text": "(b) \u2018A company's mission statement is typically focused on its present business \nscope.' Explain the significance of a mission statement. \n(5 Marks)"}, {"source_file": "Paper_6_PYP_May_2024.pdf", "subject": "FM", "doc_type": "PYP", "attempt_period": "May_2024", "text": "(a) What are channels? Why is channel analysis important? Explain the \ndifferent types of channels? \n(1 + 1 + 3 = 5 Marks)"}, {"source_file": "Paper_6_PYP_May_2024.pdf", "subject": "FM", "doc_type": "PYP", "attempt_period": "May_2024", "text": "(b) Explain the concept of vertically integrated diversification. How is forward \nintegration different from backward integration? \n(5 Marks) \nOR"}, {"source_file": "Paper_6_PYP_May_2024.pdf", "subject": "FM", "doc_type": "PYP", "attempt_period": "May_2024", "text": "(b) Recommend a tool to analyze the competitive position of various rival \ncompanies in the market and outline the step by step procedure for using \nthe identified tool. \n(5 Marks)"}]

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+[{"source_file": "Paper_6_PYP_September_2024.pdf", "subject": "FM", "doc_type": "PYP", "attempt_period": "September_2024", "text": "PART - I \nCase Scenario 1 \nRS Limited is manufacturing selling soft drinks in India. The production process \ninvolves one important process which increases the shelf life of the soft drinks. \nPresently, the machine used for this purpose is an old one, in which wastage due \nto breakage of glass bottles is considerably high and due to its limited capacity, \nthe company is not in a position to increase its production. \nThe production manager has approached the CEO of RS Limited for purchasing \nan automated machine, which will drastically reduce the wastage due to \nbreakage during the process of increasing shelf life of soft drinks. The automated \nmachine will support increase in production. The production manager is confident \nthat acquisition of the automated machine will be beneficial for the company. \nOther information is as under : \n\u2022 \nWith the introduction of automated machine, additional sales and related \ncosts over the next five years would be as follows: \nYear \nAdditional \nSales Unit \nSelling \nprice per \nunit (`) \n \nVariable \nManufacturing, \nSelling and \nDistribution \ncost per unit \n(`) \nAdditional \nfixed Selling \n& Distribution \nCost (`) \n20,000 \n20 \n25,000 \n25,000 \n20 \n30,000 \n30,000 \n20 \n30,000 \n32,000 \n22 \n35,000 \n28,000 \n22 \n35,000 \n\u2022 \nCost of acquisition of automated machine is ` 5,00,000. Residual value of \nthe automated machine at the end of its life of 5 years will be ` 50,000. \nDepreciation on automated machine will be under Straight line method. \nDepreciation is not included in the cost stated above. \n\u2022 \nThe Production Manager has estimated the cost savings (before tax) due to \nreduction in breakages as under: \n \nYear 1 \nYear 2 \nYear 3 \nYear 4 \nYear 5 \nSavings Cost due \nreduction \nin \nbreakages \n` 15,000 \n` 15,000 \n` 20,000 \n` 20,000 ` 20,000 \n\u2022 \nThe machine which is being used at present has zero written down value \nand if sold, would fetch an amount of ` 10,000 only. \n\u2022 \nThe cost of capital of the company is 10%. The tax rate applicable for the \ncompany is 30%. Ignore capital gain taxes. \nP.V Factors of ` 1 at year end at 10%: \n \nYear 1 \nYear 2 \nYear 3 \nYear 4 \nYear 5 \nP.V Factor of ` 1 \n0.909 \n0.826 \n0.751 \n0.683 \n0.621 \nYou are required to answer the following Questions 1 to 5 : \n1. \nWhat is the Profit before Taxes for the Year 2, Year 3 and Year 4 of \nthe investment proposal ? \n(A) \n` 2,35,000, ` 4,40,000, ` 4,01,000 \n(B) \n` 1,45,000, ` 3,50,000, ` 3,11,000 \n(C) \n` 2,05,000, ` 4,10,000, ` 3,66,000 \n(D) \n` 1,40,000, ` 3,60,000, ` 3,31,000 \n2. \nWhat is the Cash Inflow after Taxes for the Year 1, Year 2 and Year 3 of the \ninvestment proposal ? \n(A) \n` 1,50,000, ` 1,85,000, ` 3,45,000 \n(B) \n`1,65,000, ` 1,95,500, ` 3,55,000 \n(C) \n` 1,60,000, ` 1,91,500, ` 3,35,000 \n\n \n \nFINANCIAL MANAGEMENT AND \n \nSTRATEGIC MANAGEMENT \n(D) \n` 1,70,000, ` 1,90,000, ` 3,40,000 \n3. \nWhat is the Discounted Cash Inflow after Taxes for the Year 1, Year 2 \nand Year 3 of the investment proposal ? \n(A) \n` 1,49,985, ` 1,61,483, ` 2,66,605 \n(B) \n` 1,36,350, ` 1,52,810, ` 2,59,095 \n(C) \n` 1,54,530, ` 1,56,940, ` 2,55,340 \n(D) \n` 1,45,440, ` 1,58,179, ` 2,51,585 \n4. \nWhat is the Net Present Value of the investment proposal? \n(A) \n` 3,78,990.30 \n(B) \n` 4,54,980.60 \n(C) \n` 4,74,890.40 \n(D) \n` 3,89,260.70 \n5. \nWhat is the Discounted Payback period of the investment proposal ? \n(A) \n2.74 years \n(B) \n2.87 years \n(C) \n2.38 years \n(D) \n2.48 years \n6. \nA company has sales of ` 6,00,000, variable cost of ` 2,40,000, fixed \noperating cost of ` 2,70,000. The financial leverage is 2.5. The company \nwants to double its EBIT. The percentage change in ales required in order \nto double its EBIT will be : \n(A) \n50% \n \n(B) \n25% \n(C) \n40% \n(D) \n80% \n7. \nThe capital structure of KPS Limited includes 5,00,000 equity shares of ` 10 \neach. The market price of equity share (cum-dividend) is ` 75 per share. The \ncompany has declared to pay dividend on equity shares @ ` 6 per share \nwhich will be paid within next three days. The company has a history of \nconsistent growth in its dividends. It has been predicted that in the next \nyear KPS Limited will pay dividend on its equity shares@ ` 7.59 per share. \nThe rate of dividend growth will be maintained in foreseeable future. The \ncost of equity is calculated as: \n(A) \n36.5% \n(B) \n34.5% \n(C) \n37.5% \n(D) \n38.5% \n8. \nZX Limited has total assets of ` 7,20,000 and its Shareholders' equity is  \n` 4,50,000. The net profit margin of ZX Limited is 12.5% and asset turnover \nratio is 1.5. Using the DuPont model, the return on equity of ZX Limited is \ncalculated as : \n(A) \n7.03% \n(B) \n50% \n(C) \n11.72% \n(D) \n30% \nAnswer Key \nQuestion No."}]

vector_db_v2/raw_json_backups/Paper_6_PYP_September_2025.json

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+[{"source_file": "Paper_6_PYP_September_2025.pdf", "subject": "FM", "doc_type": "PYP", "attempt_period": "September_2025", "text": "Question No. 1 is compulsory. \nAttempt any two questions out of the remaining three questions. \nIn case, any candidate answers extra question(s)/ sub-question(s) over and \nabove the required number, then only the requisite number of questions first \nanswered in the answer book shall be valued and subsequent extra \nquestion(s) answered shall be ignored. \nWorking notes should form part of the answer."}, {"source_file": "Paper_6_PYP_September_2025.pdf", "subject": "FM", "doc_type": "PYP", "attempt_period": "September_2025", "text": "(a) The capital structure of RSA Limited is as under: \n \n(`) \nEquity Shares (` 10 per share) \n1,00,00,000 \n8% Irredeemable Preference Shares (`100 per share) \n5,00,00,000 \n \nAdditional Information:"}, {"source_file": "Paper_6_PYP_September_2025.pdf", "subject": "FM", "doc_type": "PYP", "attempt_period": "September_2025", "text": "(i)  Equity shares are quoted at ` 60 each and a new issue priced at ` 60 will \nbe fully subscribed; flotation cost will be ` 4 per share. \n(ii)  Issue price of the 8% Irredeemable preference shares was ` 45. \n(iii)  Current market price of the 8% irredeemable preference shares is ` 55. \n \nRSA Limited has been paying dividend to its equity shareholders at a constant \ngrowth rate of 5% per year and the dividend paid this year was  \n` 2 per equity share. \nYou are required to calculate:"}, {"source_file": "Paper_6_PYP_September_2025.pdf", "subject": "FM", "doc_type": "PYP", "attempt_period": "September_2025", "text": "(i)  The cost of equity using Gordon's model \n(ii)  The cost of the irredeemable preference share \n(iii)  The weighted average cost of capital using market value weights. \n \n(2 + 1 + 2 = 5 Marks)"}, {"source_file": "Paper_6_PYP_September_2025.pdf", "subject": "FM", "doc_type": "PYP", "attempt_period": "September_2025", "text": "(b)  Diwan Limited has outlined its financial projections for the fiscal year  \n2025-26. The company plans to utilize total assets amounting to  \n\n \n \nFINANCIAL MANAGEMENT AND \n \nSTRATEGIC MANAGEMENT \n \n S \n` 50,00,000, with 35% of assets financed through debt at interest rate of \n10.50% per annum. Projected sales revenue is ` 55,00,000. Direct costs are \nestimated at ` 30,00,000 and other operating expenses are estimated at  \n` 4,80,000. The applicable tax rate is 33% \nYou are required to calculate:"}, {"source_file": "Paper_6_PYP_September_2025.pdf", "subject": "FM", "doc_type": "PYP", "attempt_period": "September_2025", "text": "(i)  Profit After Tax (PAT) \n(ii)  Net profit margin (After tax) \n(iii)  Return on Assets (After tax) \n(iv)  Asset turnover ratio"}, {"source_file": "Paper_6_PYP_September_2025.pdf", "subject": "FM", "doc_type": "PYP", "attempt_period": "September_2025", "text": "(c)  Global Beverage Corporation is considering replacing one of its bottling \nmachines with a newer and more efficient model. The existing machine was \npurchased five years ago for ` 16,00,000 and has a total useful life of ten \nyears. Currently, the company can sell this machine for ` 9,60,000. The new \nmachine costs ` 32,00,000 having an estimated salvage value of ` 3,20,000 \nand a useful life of five years. With the new machine, annual contribution \nmargin is projected to increase from ` 16,00,000 to ` 18,40,000 and \noperating efficiencies are expected to yield further annual savings of  \n` 3,20,000. Depreciation is calculated on a straight-line method over the \nmachine's five-year life. The company's cost of capital is 12% and corporate \ntax rate is 33%. \n \nYou are required to calculate the Net Present Value of new machine. \n \nGiven: PVIFA0.12,5 is 3.605 and PVIF0.12,5 is 0.567 \n(5 Marks)"}, {"source_file": "Paper_6_PYP_September_2025.pdf", "subject": "FM", "doc_type": "PYP", "attempt_period": "September_2025", "text": "(a)  M/s KRY Limited is a mid-sized company engaged in manufacturing and \nsales of Industrial equipment. The capital structure of the company is as \nunder: \nEquity Share Capital (12,500 Shares of `100 each) \n`12,50,000 \n6% Debentures  \n` 50,00,000 \n8% Bank of Loan \nXXXXX \nOther information are as under: \n \nTotal Sales \n` 75,00,000 \nP/V Ratio \n40% \nOperating Leverage \n2.4 \nCorporate Tax Rate \n3.84 \nCorporate Tax Rate \n30% \nP/E Ratio \nYou are required to calculate following:"}, {"source_file": "Paper_6_PYP_September_2025.pdf", "subject": "FM", "doc_type": "PYP", "attempt_period": "September_2025", "text": "(i)  Earnings Before Interest and Tax \n(ii)  Fixed Cost excluding interest \n(iii)  Amount of Bank Loan and Bank Interest \n(iv) Earning Per Share"}, {"source_file": "Paper_6_PYP_September_2025.pdf", "subject": "FM", "doc_type": "PYP", "attempt_period": "September_2025", "text": "(v)  Market Price Per Share \n(1 + 1 + 2 + 2 + 1 = 7 Marks)"}, {"source_file": "Paper_6_PYP_September_2025.pdf", "subject": "FM", "doc_type": "PYP", "attempt_period": "September_2025", "text": "(b)  Saraswati Ltd. has started its business a year back with a paid-up equity \ncapital of ` 50,00,000. The other details are as under: \n\n \n  \n S \nEarnings of company \n` 5,00,000  \nCost of Capital \n` 159.09 \nMarket price per share using Gordon\u2019s Model \n8% \nInternal rate of return on investment \n12% \nNumber of shares \n50,000 \n \nYou are required to:"}, {"source_file": "Paper_6_PYP_September_2025.pdf", "subject": "FM", "doc_type": "PYP", "attempt_period": "September_2025", "text": "(i)  Calculate the Dividend paid per share using Gordon's Model. \n(ii)  What will be Optimum dividend pay-out ratio according to Gordon's \nModel when r = Ke? \n(2 + 1 = 3 Marks)"}, {"source_file": "Paper_6_PYP_September_2025.pdf", "subject": "FM", "doc_type": "PYP", "attempt_period": "September_2025", "text": "(a) AVS Limited is planning to diversify its cotton manufacturing business. The \nChief Financial Officer (CFO) intends to raise fund of ` 22,00,000 for this \nproject. The current estimates of Earnings Before Interest and Taxes (EBIT) \nfrom the new project are ` 5,00,000 per annum. The company's share is \ncurrently selling at ` 120 and is expected to decline to ` 110, in case the \nfunds are borrowed more than ` 10,00,000. It is stated that the cost of debt \nwill be 14% up to ` 8,00,000, 16% for additional amount of ` 2,00,000 above \n` 8,00,000 and 18% for additional amount above ` 10,00,000. The tax rate \n\n \n  \n S \napplicable to the company is 30%. the following options are in consideration \nof the company.  \nOption \nDebt \nEquity \nI \n60% \n40% \nII \n50% \n50% \nIII \n40% \n60% \n \nConsidering the objective of maximising Earning Per Share (EPS), which \noption of financing should the company choose? \n(7 Marks)"}, {"source_file": "Paper_6_PYP_September_2025.pdf", "subject": "FM", "doc_type": "PYP", "attempt_period": "September_2025", "text": "(b)  A company issues 20,000, 18% Debentures of `100 each. The debentures are \nredeemable after a period of 8 years. The cost of debentures using \napproximation method is 14.58%. The corporate tax rate is 30%. You are \nrequired to calculate:"}, {"source_file": "Paper_6_PYP_September_2025.pdf", "subject": "FM", "doc_type": "PYP", "attempt_period": "September_2025", "text": "(i)  Issue price of the Debentures, if redeemable at par. \n(ii)  Revised Cost of Debentures using approximation method, if redeemable \nat 10% Premium after 8 years. \n(2 + 1 = 3 Marks)"}, {"source_file": "Paper_6_PYP_September_2025.pdf", "subject": "FM", "doc_type": "PYP", "attempt_period": "September_2025", "text": "(a) ARP Motors, an automobile company, was struggling in the competitive \nSUV market in India. As a business strategist, you recommended that ARP \nlaunch a compact SUV that balances affordability with premium features. \nIn response, ARP developed and introduced FLEXON, strategically pricing it \nand incorporating high-end features such as a 5-star Global NCAP safety \nrating, a modern design and an advanced technology. Furthermore, the \ncompany expanded into the electric vehicle segment with FLEXON EV, \npositioning it as one of the most affordable yet feature-rich electric SUVs in \nIndia. \n \nWhich strategy did you recommend to ARP Motors to achieve a competitive \nadvantage? Explain the strategy briefly and enumerate the key ways ARP \nMotors implemented it.  \n(5 Marks)"}, {"source_file": "Paper_6_PYP_September_2025.pdf", "subject": "FM", "doc_type": "PYP", "attempt_period": "September_2025", "text": "(b) You are the CFO of a multinational corporation that has been facing \ndeclining profitability in one of its business units for the past three years. It \nhas been struggling with negative cash flows and intense competition. \nSignificant investment would be needed for technological upgrades. You are \nnot interested in investing in restructuring and revitalizing. A more \npromising investment opportunity is available elsewhere. As CFO, what step \nwould you take in response to this situation? How would you justify your \ndecision?  \n(5 Marks)"}, {"source_file": "Paper_6_PYP_September_2025.pdf", "subject": "FM", "doc_type": "PYP", "attempt_period": "September_2025", "text": "(c) XYZ Ltd. recently formulated an international expansion strategy and \nimplemented the new market expansion strategy with the aim of increasing \nits presence in international markets. However, six months into the \nimplementation, sales figures are not meeting projections. Improper use of \nresources, undesirable tendencies of the workers, non-conformance to \nnorms and standards and unforeseen regulatory challenges have emerged. \nAdditionally, competitor activity has intensified, affecting market share. As \na strategic decision-maker, which function of strategic management \nprocess would you perform? What specific elements of that function would \n\n \nFINANCIAL MANAGEMENT AND  \nSTRATEGIC MANAGEMENT \n \n \n S \nyou implement to overcome these issues and ensure that planned actions \ntranslate into successful achievement of goals and results? \n(5 Marks)"}, {"source_file": "Paper_6_PYP_September_2025.pdf", "subject": "FM", "doc_type": "PYP", "attempt_period": "September_2025", "text": "(a) \"A well-defined vision and mission statement provide direction and purpose \nto an organization.\" Explain the significance of vision and mission \nstatements in strategic planning. \n(5 Marks)"}, {"source_file": "Paper_6_PYP_September_2025.pdf", "subject": "FM", "doc_type": "PYP", "attempt_period": "September_2025", "text": "(b)  Which concept explains the efficiency increase gained by worker through \nrepetitive production work, leading to cost reduction and competitive \nadvantage? List down its relevance features in strategic management. \n (5 Marks) \n\n \nFINANCIAL MANAGEMENT AND  \nSTRATEGIC MANAGEMENT \n \n \n S"}, {"source_file": "Paper_6_PYP_September_2025.pdf", "subject": "FM", "doc_type": "PYP", "attempt_period": "September_2025", "text": "(a) \"The primary objective of SWOT analysis is to help organizations develop a \nfull awareness of all factor involved in making a business decision.\" \n \nIn the light of the above statement, explain why is it necessary to do SWOT \nanalysis for business organization before using the strategy. \n(5 Marks)"}, {"source_file": "Paper_6_PYP_September_2025.pdf", "subject": "FM", "doc_type": "PYP", "attempt_period": "September_2025", "text": "(b) \u201cIn a dynamic business environment, merger serves as a critical tool for \ncompanies \nseeking \nexpansion, \nsynergy \ncreation \nand \ncompetitive \nadvantage.\u201d Discuss the concept of mergers, their classifications and their \nimpact on business performance.  \n(5 Marks)"}, {"source_file": "Paper_6_PYP_September_2025.pdf", "subject": "FM", "doc_type": "PYP", "attempt_period": "September_2025", "text": "(a)  \u201cA close and continuous interaction between a business and its \nenvironment helps in strengthening the business firm and using its \nresources more effectively.\" Explain Business environment and discuss how \ndoes the interaction between a business and its environment helps the \nbusiness firm. \n(5 Marks)"}, {"source_file": "Paper_6_PYP_September_2025.pdf", "subject": "FM", "doc_type": "PYP", "attempt_period": "September_2025", "text": "(b)  \u201cMany managers fail to distinguish between strategy formulation and \nstrategy implementation. Yet, it is crucial to realize the difference between \nthe two because they both require very different skills.\u201d \n \nOn the basis of this statement, outline the key distinctions between strategy \nformulation and strategy implementation. \n (5 Marks) \nOR"}]