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NEW QUESTION: 1
Datacomp Industries, which has no current debt, has a beta of .95 for its common stock. Management is
considering a change in the capital structure to 30% debt and 70% equity. This change would increase
the beta on the stock to 1.05, and the after-tax cost of debt will be 7.5%. The expected return on equity is
1 6%, and the risk-free rate is 6%. Should Datacomp's management proceed with the capital structure
change?
A. No, because the cost of equity capital will increase.
B. Yes, because the weighted average cost of capital will decrease.
C. No, because the weighted average cost of capital will increase.
D. Yes, because the cost of equity capital will decrease.
Answer: B
Explanation:
Choice "c" is correct. First, compute Datacomp's current weighted average cost of capital by using the
capital asset pricing model (CAPM):
Because there is no debt, the WACC is equal to the CAPM formula for equity or 15.5%. When debt is
introduced, the WACC is calculated by first using the CAPM to determine the required return on equity:
Assuming an after tax cost of debt is equal to 7.5%, the WACC becomes:
(.165 * (.70)) + (.075 * (.3)) = 13.8%
Therefore, Datacomp should change its capital structure because its WACC will decrease (Choice "c").
Choices "a", "b", and "d" are incorrect, per above.
NEW QUESTION: 2
According to the company requirements, a data archival strategy should be designed for order data. You can see the placements of data and partitions for the Sales.Orders table at the end of July from display below. From the following filegroups, which one should partition 2 of the Sales.OrderArchive table locate on?
A. Partition 2 of the Sales.OrderArchive table should locate on FG3
B. Partition 2 of the Sales.OrderArchive table should locate on FG2
C. Partition 2 of the Sales.OrderArchive table should locate on FG4
D. Partition 2 of the Sales.OrderArchive table should locate on FG1
Answer: B
NEW QUESTION: 3
Which Patch Management option enables error checking on Differential mode replication?
A. Verity Replication Mode
B. Verity Data Integrity
C. Verity Differential Integrity Check
D. Verity Differential Replication
Answer: B
NEW QUESTION: 4
Your network contains an Active Directory domain named contoso.com. The domain contains two member servers named Server1 and Server2. All servers run Windows Server 2012 R2.
Server1 and Server2 are nodes in a Hyper-V cluster named Cluster1. Cluster1 hosts 10 virtual machines.
All of the virtual machines run Windows Server 2012 R2 and are members of the domain.
You need to ensure that the first time a service named Service1 fails on a virtual machine, the virtual machine is moved to a different node.
You configure Service1 to be monitored from Failover Cluster Manager.
What should you configure on the virtual machine?
A. From the General settings, modify the Service status.
B. From the Recovery settings of Service1, set the First failure recovery action to Take No Action.
C. From the Recovery settings of Service1, set the First failure recovery action to Restart the Service.
D. From the General settings, modify the Startup type.
Answer: B
Explanation:
Explanation/Reference:
Explanation:
When a monitored service fails the Recovery features of the service will take action.
Example:
In this case for the first failure the service will be restarted by the Service Control Manager inside the guest operating system, if the service fails for a second time the service will again be restarted via guest operating system. In case of a third failure the Service Control Manager will take no action and the Cluster service running on the Hyper-V host will take over recovery actions.
References: How to configure VM Monitoring in Windows Server 2012
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