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NEW QUESTION: 1
Calculate the cost of debt for the following firm:
Borrowing Rate 9.5%
Historical Beta .97
Marginal Tax Rate 40%
Credit Rating BB+
Owner's Equity 15%
Quick Ratio 1.7
EPS $1.70
P/E ratio 12
Estimated Dividends $.30
A. 5.7%
B. 9.5%
C. 8.075%
D. 1.5%
E. 1.43%
F. 6.27%
Answer: A
Explanation:
Explanation/Reference:
Explanation:
The cost of debt is simply the rate of borrowing less the tax savings. Due to the fact that interest expense is tax deductible, the cost of debt in this case is 9.5%(1 - .4) = 9.5%(.6) = 5.7%.

NEW QUESTION: 2

Refer to the exhibit. R1 is unable to establish an OSPF neighbor relationship with R3. What are two possible reasons for this problem? (Choose two.)
A. R1 and R3 are configured in different areas.
B. All of the routers need to be configured for backbone Area 1.
C. EIGRP is also configured on these routers with a lower administrative distance.
D. R1 and R2 are the DR and BDR, so OSPF will not establish neighbor adjacency with R3.
E. A static route has been configured from R1 to R3 and prevents the neighbor adjacency from being established.
F. The hello and dead interval timers are not set to the same values on R1 and R3.
Answer: A,F

NEW QUESTION: 3
A network operations manager has added a second row of server racks in the datacenter.
These racks face the opposite direction of the first row of racks.
Which of the following is the reason the manager installed the racks this way?
A. To create environmental hot and cold isles
B. To eliminate the potential for electromagnetic interference
C. To maximize fire suppression capabilities
D. To lower energy consumption by sharing power outlets
Answer: A