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NEW QUESTION: 1
Refer to the exhibit.
Switch A, B, and C are trunked together and have been properly configured for VTP. Switch C receives VLAN information from the VTP server Switch A, but Switch B does not receive any VLAN information.
What is the most probable cause of this behavior?
A. The trunk between Switch A and Switch B is misconfigured.
B. Switch B is configured in transparent mode.
C. Switch B is configured with an access port to Switch A, while Switch C is configured with a trunk port to Switch B.
D. The VTP revision number of the Switch B is higher than that of Switch A.
NEW QUESTION: 2
Anderson Company has four investment opportunities with the following costs (all costs are paid at t=0) and estimated internal rates of return (IRR):
Project Cost IRR
A $2,000 16.0%
B $3,000 14.5
C $5,000 11.5
D $3,000 9.5
The company has a target capital structure, which consists of 40 percent common equity, 40 percent debt, and 20 percent preferred stock. The company has $1,000 in retained earnings. The company expects its year-end dividend to be $3.00 per share. The dividend is expected to grow at a constant rate of 5 percent a year. The company's stock price is currently $42.75. If the company issues new common stock, the company will pay its investment bankers a 10 percent flotation cost. The company can issue corporate bonds with a yield to maturity of 10 percent. The company is in the 35 percent tax bracket. How large can the cost of preferred stock be (including flotation costs) and it still be profitable for the company to invest in all four projects?
We need to find k(ps) at the point where all 4 projects are accepted. In other words, the capital budget
$2,000 + $3,000 + $5,000 + $3,000 = $13,000. The WACC at that point is equal to IRR(D) = 9.5%.
Step 1 Find the retained earnings break point to determine whether k(s) or k(e) is used in the WACC calculation:
BP(RE) = $2,500.
Since the capital budget > the retained earnings break point, k(e) is used in the WACC calculation.
Step 2 Calculate k(e):
k(e) = [3.00/$42.75(1-.10)] + 5% = 12.80%.
Step 3 Find k(ps):
9.5% = 0.4(10%)(0.65) + 0.2(kps) + 0.4(12.80%)
9.5% = 2.60% + 0.2(kps) + 5.12%
1.78% = 0.2k(ps)
8.90% = k(ps).
NEW QUESTION: 3
A financial company stores all enterprise data for five years in their Teradata data warehouse that costs them expensive storage. The company started an initiative to move historical data to a Hadoop environment and uses federation method to access both sets of data. What would be the IBM Big Data value proposition for this use case?
A. InfoSphere Information Server
B. Enterprise Data Warehouse
C. IBM Logical Data Warehouse and IBM Big SQL
D. Pure Data for Analytics
NEW QUESTION: 4
Which best describes the benefit of unit testing rules? (Choose One)
A. Unit testing identifies configuration issues that can propagate to other rules with potentially serious consequences.
B. Unit testing validates a rule configuration to ensure that any dependent rules are available to the application.
C. Unit testing identifies configuration issues that may impact application performance on a production system.
D. Unit testing validates information that must be provided before the rule can be saved.
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