CA Final · September 2025 · Paper 2
CA Final Advanced Financial Management September 2025: paper analysis
Our own analysis of the official paper, as of 12 October 2026. The questions and answers belong to ICAI; read them on ICAI's website.
Chapter-wise marks
Where the marks were in this paper (out of 100; internal-choice alternatives not double counted).
What each question tested
In our words, by question number. Open the official paper for the full question.
| Q | Marks | Tests | Chapter |
|---|---|---|---|
| 1(a) | 6 | Cost of equity via CAPM and equity and enterprise value using an EBITDA multiple | Business Valuation |
| 1(b) | 4 | Expected gain or loss on a foreign currency receivable with and without forward cover | Foreign Exchange Exposure and Risk Management |
| 1(c) | 4 | Steps in a business succession strategy | Financial Policy and Corporate Strategy |
| 2(a) | 6 | Effect of changes in dividend, growth, beta and rates on equilibrium share price, and investment advice | Security Valuation |
| 2(b) | 4 | Settlement amount of a forward rate agreement under rising and falling rates | Interest Rate Risk Management |
| 2(c) | 4 | Key features that make an organisation financially sustainable | Financial Policy and Corporate Strategy |
| 3(a) | 6 | Bond refunding decision: replacing high-coupon debentures with cheaper debt | Security Valuation |
| 3(b) | 4 | Holding period return under alternative mutual fund distribution options | Mutual Funds |
| 3(c) | 4 | Risks of using blockchain technology | Risk Management |
| 4(a) | 6 | Risk-adjusted performance of two stocks and the impact of changing portfolio weights | Portfolio Management |
| 4(b) | 4 | Beta hedging of long and short share positions with index futures | Derivatives Analysis and Valuation |
| 4(c) | 4 | Arguments for and against technical analysis | Security Analysis |
| 4(c) OR | 4 | Parameters used to identify currency risk | Risk Management |
| 5(a) | 7 | Evaluating an import proposal with foreign currency cash flows using NPV | International Financial Management |
| 5(b) | 7 | Mutual fund investment with entry load, reinvested distributions, nominal and real returns | Mutual Funds |
| 6(a) | 7 | Equity valuation using free cash flow to firm and implied free cash flow to equity | Business Valuation |
| 6(b) | 7 | Forward cover versus money market hedge for a foreign currency receivable | Foreign Exchange Exposure and Risk Management |
What stood out
- Every MCQ case was single-chapter: NPV sensitivity, fund NAV, option strategies, forward rates and merger EPS.
- Foreign exchange was the heaviest area: three MCQs plus 11 descriptive marks on hedging.
- Mutual funds again took significant weight, with an MCQ case and 11 descriptive marks.
- Theory parts covered newer syllabus themes such as succession planning, financial sustainability and blockchain risk.
- Questions 5 and 6 used a 7 plus 7 structure, unlike the 6-4-4 split in Questions 1 to 4.
Practise the chapters that carried the marks
Foreign Exchange Exposure and Risk Management, Mutual Funds, Business Valuation: study guides and practice questions in the CA Final format.