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NEW QUESTION: 1
Helms Aircraft has a capital structure, which consists of 60 percent debt and 40 percent common stock.
The company's equity financing will come from issuing new common stock. The company recently issued bonds with a yield to maturity of 9 percent. The company's stock is currently trading at $40 a share. The year-end dividend is expected to be $4 a share (that is, D(1) = $4.00), and the dividend is expected to grow at a constant rate of 5 percent. The flotation costs associated with issuing new common stock are estimated to be 10 percent. The company's tax rate is 35 percent. What is the company's weighted average cost of capital?
A. 8.33%
B. 11.84%
C. 10.98%
D. 9.51%
E. 9.95%
Answer: E
Explanation:
Explanation/Reference:
Explanation:
Calculate the after-tax cost of debt = (1 - 0.35) 9% = 5.85%.
Calculate the cost of new equity: k(e) = $4/[$40(1 - 0.1)] + 0.05 = 0.1611 or 16.11%. Compute WACC (Weighted Average Cost of Capital): 0.6(5.85%) + 0.4(16.11%) = 9.95%.
NEW QUESTION: 2
What are valid options for handling DNS requests sent directly to a FortiGate's interface
IP? (Choose three.)
A. Forward-only.
B. Iterative.
C. Non-recursive.
D. Recursive.
E. Conditional-forward.
Answer: A,C,D
NEW QUESTION: 3
Your CRM system has an order that includes new broadband service order items to be provisioned and existing mobile service order items to be terminated in the network. Before sending this order for fulfillment, the customer requirements specify that the CRM system should send the same order items to the Order Management System to check whether it is feasible to fulfill the need.
Which entity in OSM would you use to differentiate between the orchestration plans that should be executed for each of these two (fulfill and check) orders?
A. Fulfillment Modes
B. Order item action code property
C. Order Component Specifications
D. Order Recognition Rules
E. Orchestration Sequences
Answer: C
NEW QUESTION: 4
A. IBM Spectrum Copy Data Management
B. IBM Spectrum Virtualize
C. IBM Spectrum Protect Plus
D. IBM Spectrum Archive
Answer: B
