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NEW QUESTION: 1
Arizona Rock, an all-equity firm, currently has a beta of 1.25, and k(RF) = 7 percent and k(M) = 14 percent.
Suppose the firm sells 10 percent of its assets (beta = 1.25) and purchases the same proportion of new assets with a beta of 1.1. What will be the firm's new overall required rate of return, and what rate of return must the new assets produce in order to leave the stock price unchanged?
A. 15.645%; 15.645%
B. 14.750%; 15.750%
C. 15.750%; 15.645%
D. 15.645%; 14.700%
E. 15.750%; 14.700%
Answer: D
Explanation:
Explanation/Reference:
Explanation:
b(old, firm) = 1.25.
k(old, firm) = 0.07 + (14 - 7)1.25 = 15.75%.
b(new, firm) = 0.9(1.25) + 0.1(1.1) = 1.235.
k(new, firm) = 0.07 + 1.235(0.07) = 15.645%.
k(new, assets) = 0.07 + 1.1(0.07) = 14.7%.
NEW QUESTION: 2
Which three options dictate that MicroApps are not sufficient and require Call Studio for a Call Flow scripting? (Choose three.)
A. IVR Outbound option
B. Courtesy Callback
C. agent whisper
D. agent greeting
E. Video prompt
F. recording a.wav file
Answer: B,E,F
NEW QUESTION: 3
Making sure that the data is accessible when and where it is needed is which of the following?
A. Integrity
B. Acceptability
C. Availability
D. Confidentiality
Answer: C
Explanation:
This is one of the pillars of network security. We can say that the data is available if we can access to it when we need it. This what is referred in the question, Availability refers to get access to data when and where you need it.
Confidentiality deals with encryption and data protection against third party interception. Integrity deals with digital signatures and assures that the data has not changed. Acceptability is not a related term.
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