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NEW QUESTION: 1
Consider the following information:
Borrowing Rate 10%
Marginal Tax Rate 40%
Preferred Stock Par Price $100
Preferred Dividend $10
Preferred Stock floatation cost 2.5%
Cost of common equity 12.0%
Preferred Stock issued at Par
The Optimal Capital Structure is 40% debt, 50% common equity, and 10% preferred stock. Credit Rating BB+ What is the firm's Weighted Average Cost of Capital (WACC)?
A. 7.42%
B. 8.0%
C. 2.5%
D. 9.42%
E. 12.62%
F. 9.0%
Answer: D
Explanation:
Explanation/Reference:
Explanation:
The firm's Weighted Average Cost of Capital (WACC) is a weighted average of the component cost of capital. In this case 10%(borrowing rate) x (1-.4)Tax savings = 6% is the component cost of debt. $10 (preferred dividend) / 97.5(Par minus floatation cost) = 10.25% is the component cost of preferred stock.
Thus the WACC = .4(6%) + .5(12%) + .1(10.25%) = 9.42%

NEW QUESTION: 2
When of the following technologies would be MOST appropriate to utilize when testing a new software patch before a company-wide deplyment?
A. Cloud Computing
B. Application control
C. Virtualization
D. Redundancy
Answer: C
Explanation:
Virtualization is used to host one or more operating systems in the memory of a single host computer and allows multiple operating systems to run simultaneously on the same hardware, reducing costs. Virtualization offers the flexibility of quickly and easily making backups of entire virtual systems, and quickly recovering the virtual system w hen errors occur. Furthermore, malicious code compromises of virtual systems rarely affect the host system, which allows for safer testing and experimentation.

NEW QUESTION: 3
You need to ensure that if a volume fails on EX2 again, a mailbox database copy is recreated automatically on a different volume.
Which command should you run?
A. Set-DatabaseAvailabilityGroup
B. Set-MailboxAutoRcplyConfigu ration
C. Set-MailboxDatabaseCopy
D. Set-MailboxDatabase
Answer: A

NEW QUESTION: 4
A customer has multiple data types and is looking for space savings on the storage environment.
Which data type can benefit from Real-time Compression?
A. Virtual servers
B. Encrypted user documents
C. Media files
D. Compressed database files
Answer: A
Explanation:
Explanation/Reference:
References: IBM Real-time Compression in IBM SAN Volume Controller and IBM ..., Volume 7000, page 4