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NEW QUESTION: 1
You are making changes to a program that already has a transaction code linked to it. Your colleague is testing the transaction in your development system. At what point can the changed version of the program be tested?
Please choose the correct answer.
Response:
A. When you save the program
B. When you perform a syntax check on the program
C. When you release the transport requests for the program
D. When you activate the program
Answer: D
NEW QUESTION: 2
Thomas Otto is an associate in the strategic consulting group for a medium-sized manufacturing company.
Historically, the firm has financed projects using internal equity funds. The company is approaching the retained earnings break-even point, and the group's Executive Vice President asks Otto to determine the change in the weighted average cost of capital (WACC) if the firm uses external equity funds instead of internal funds. An analyst in the group provides the following information:
And, the firm's investment bank provides the following projections for a new common stock issue:
Which of the following choices best completes the following sentence? Using this information, Otto reports that the WACC will:
A. remain the same.
B. increase by 1.82%.
C. increase by 1.66%.
D. decrease by 1.66%.
Answer: B
Explanation:
Explanation/Reference:
Explanation:
Step 1: Calculate WACC using internal equity:
WACC = (wd)(kd) + (ws)(ks), where wd, wsare the weights used for debt and retained earnings.
WACC = (0.40 * 6.0%) + (0.60 * 13.0%) =10.20%.
Step 2: Calculate WACC using external equity (new common stock):
First, we need to determine the cost of new common equity.
Thecost of new common equityis given by:
ke= [D1/ (P0(1 - F))] + g
where
F = the percentage flotation cost incurred in selling new stock, or
(current stock price - funds going to company) / current stock price
D1= Dividend in next year
P0= Current stock price
g = Dividend growth rate
Here, D1and F are given, and ke= [ 2.33 / (30 * (1 - 0.035))] + 0.08 = 0.1604 or 16.04% Then, calculate WACC as before:
WACC = (wd)(kd) + (we)(ke), where wd, weare the weights used for debt and common equity.
WACC = (0.40 * 6.0%) + (0.60 * 16.04%) =12.02%.
Step 3: Calculate the difference:
The change in WACC = 12.02% - 10.20% = 1.82%, or an increase of 1.82%.
NEW QUESTION: 3
SPARK : CONFLAGRATION ::
A. match : light
B. sugar : sweetness
C. yeast : fermentation
D. volcano : eruption
E. drizzle : downpour
Answer: E
Explanation:
This is a "degree of" analogy. A SPARK is a very small fire, while a CONFLAGRATION is a very large fire.
The relationship is one of degree. Similarly, a drizzle is a very light rain, while a downpour is very heavy
rain.
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