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NEW QUESTION: 1
Given the following choices, what is the optimal capital structure for Chip Co.? (Assume that the company's growth rate is 2 percent.) Debt Ratio
Dividends
Per Share ($)
Cost of Equity
0%5.5011.5%
256.0012.0
406.5013.0
507.0014.0
757.5015.0
A. 75% debt; 25% equity
B. 40% debt; 60% equity
C. 25% debt; 75% equity
D. 50% debt; 50% equity
E. 0% debt; 100% equity
Answer: C
Explanation:
Explanation/Reference:
Explanation:
First, calculate the stock price for each debt level using the dividend growth model, Po = D1/(ks - g).
Debt Div/share ksPo
0%$5.5011.5% $5.50/(0.115 - 0.02) = $57.89.
25%6.0012%$6.00/(0.12 - 0.02) = $60.00.
40%6.5013%$6.50/(0.13 - 0.02) = $59.09.
50%7.0014%$7.00/(0.14 - 0.02) = $58.33.
75%7.5015%$7.50/(0.15 - 0.02) = $57.69.
Clearly, $60.00 is the highest price, so 25% debt and 75% equity is the optimal capital structure.

NEW QUESTION: 2

A. Option D
B. Option C
C. Option B
D. Option A
Answer: A
Explanation:
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NEW QUESTION: 3
Scenario: A Citrix Architect is designing a XenDesktop environment. The Graphic Designers group uses a graphic-intensive application. Graphic Designers will be provided with a Windows 10 Hosted Personal Desktop, with NVIDIA graphics hardware acceleration. HDX 3D Pro mode was selected during the installation of Virtual Delivery Agent (VDA).
What is the maximum number of monitors supported for the Graphic group?
A. 0
B. 1
C. 2
D. 3
Answer: D

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An administrator logs into the vSphere Web Client, but is unable to see any hosts and clusters.
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B. Verify that the client web browser and vCenter Server are in the same broadcast domain.
C. Verify that the vCenter Server system is registered with the same Platform Services Controller as the
vSphere Web Client.
D. Log in to the vSphere Web Client as a user with permissions on the vCenter Server system.
Answer: C,D

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