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NEW QUESTION: 1
Clay Industries, a large industrial firm, is examining its capital structure. The firm is financed according to the following schedule based on market values:
50% debt
40% common stock
10% perpetual preferred stock
Additionally, consider the following information:
Yield on outstanding debt: 8.50%
Tax rate: 35%
Annual preferred dividend: $2.55
Preferred stock price: $25.97
Return on equity: 16.75%
Dividend payout ratio: 50%
Cost of common stock: 14.25%
Using this information, what is the Weighted Average Cost of Capital for Clay Industries?
A. 9.25%
B. 9.37%
C. 8.97%
D. None of these answers
E. 9.45%
F. 9.37%
Answer: E
Explanation:
Explanation/Reference:
Explanation:
In order to calculate the WACC, it is necessary to first calculate the component after-tax cost of debt, common equity, and preferred equity. Once the cost of these components is determined, they are imputed into the WACC equation, which is as follows:
{WACC = [(% weight of debt securities * cost of debt) + (% weight of common stock * cost of common stock) + (% weight of preferred stock * cost of preferred stock)]} To calculate the component cost of debt, use the following equation:
{After-tax cost of debt = [yield on outstanding debt securities * (1 - tax rate)} Factoring in the given information into this equation would yield the following:
{After-tax cost of debt = [8.50% * (1 - 0.35%)]} = 5.525%
To calculate the component cost of outstanding preferred stock, the following equation must be used:
{Cost of preferred stock = [annual dividend / preferred stock price]}
{Cost of preferred stock - = [$2.55 / $25.97]} = 9.82%.
The final component of the WACC calculation, the cost of common equity, has been provided as 14.25%.
Now that the after-tax cost of debt, preferred stock, and common stock have been determined, the WACC calculation can be found. The calculation of the WACC is as follows:
{[0.50 * 0.05525] + [0.40 * 0.1425] + [0.10 * 0.0982]} = 9.445%

NEW QUESTION: 2

A. IP MTU
B. MTUD
C. DF bit clear
D. MTU ignore
E. UDP windows sizes
F. TCP MSS
Answer: C,F

NEW QUESTION: 3
Your network consists of one Active Directory domain
Your company uses a firewall to connect to the Internet. Inbound TCP/IP port 443 is allowed on the firewall.
You have Remote Desktop Services servers on the internal network. You have one server on the internal
network that has Remote Desktop Gateway (RD Gateway) deployed. Al servers run Windows Server 2008
R2.
You need to recommend a solution that enables remote users to access network resources by using RD Gateway.
What should you recommend?
A. Install the Remote Desktop Services server role with the Remote Desktop Connection Broker (RD Connection Broker) services role.
B. Change the firewall rules to permit traffic through port 3389 from the Internet.
C. Create a Remote Desktop connection authorization policy (RD CAP) and a Remote Desktop resource authorization policy (RD RAP).
D. Install the Remote Desktop Services server role with the Remote Desktop Web Access (RD Web Access) services role.
Answer: C
Explanation:
CAP & RAP
RD CAPs allow you to specify who can connect to an RD Gateway server. You can specify a user group that exists on the local RD Gateway server or in Active Directory Domain Services. You can also specify other conditions that users must meet to access an RD Gateway server. You can list specific conditions in each RD CAP. For example, you might require a group of users to use a smart card to connect through RD Gateway.
RD RAPs allow you to specify the internal network resources that remote users can connect to through an RD Gateway server. When you create an RD RAP, you can create a computer group (a list of computers on the internal network to which you want the remote users to connect) and associate it with the RD RAP.
Remote users connecting to an internal network through an RD Gateway server are granted access to computers on the network if they meet the conditions specified in at least one RD CAP and one RD RAP.