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NEW QUESTION: 1
Delicious Candy Company (Delicious) is a leading manufacturer and distributor of quality confectionery products throughout Europe and Mexico. Delicious is a publicly-traded firm located in Italy and has been in business over 60 years.
Caleb Scott, an equity analyst with a large pension fund, has been asked to complete a comprehensive analysis of Delicious in order to evaluate the possibility of a future investment.
Scott compiles the selected financial data found in Exhibit 1 and learns that Delicious owns a 30% equity interest in a supplier located in the United States. Delicious uses the equity method to account for its investment in the U.S. associate.
Scott reads the Delicious's revenue recognition footnote found in Exhibit 2.
Exhibit 2: Revenue Recognition Footnote
__________________________________________________________________________________ in millions__________________________________________________________________________ Revenue is recognized, net of returns and allowances, when the goods are shipped to customers and collectability is assured. Several customers remit payment before delivery in order to receive additional discounts. Delicious reports these amounts as unearned revenue until the goods are shipped. Unearned revenue was €7,201 at the end of 2009 and €5,514 at the end of 2008.
Delicious operates two geographic segments: Europe and Mexico. Selected financial information for each segment is found in Exhibit 3.
At the beginning of 2009, Delicious entered into an operating lease for manufacturing equipment. At inception, the present value of the lease payments, discounted at an interest rate of 10%, was 6300 million. The lease term is six years and the annual payment is 669 million. Similar equipment owned by Delicious is depreciated using the straight-line method and no residual values are assumed.
Scott gathers the information in Exhibit 4 to determine the implied "stand-alone" value of Delicious without regard to the value of its U.S. associate.
Using the data found in Exhibit 1 and the extended DuPont equation, which of the following best describes the impact on Delicious's return on equity (ROE) for 2009 of eliminating the investment in the U.S.
associate?
A. Adjusted ROE is lower than unadjusted ROE.
B. The investment in the U.S. associate has no impact on adjusted ROE for 2009.
C. Adjusted ROE is higher than unadjusted ROE.
Answer: C
Explanation:
Explanation/Reference:
Explanation:
Do not automatically assume that eliminating the associate earnings will result in lower ROE. In this case, unadjusted ROE for 2009 was 21.4%, and adjusted ROE was 22.1%. Note that financial leverage (assets / equity) is not adjusted, as no information is provided about how the investment in the associate was financed.
NEW QUESTION: 2
What set of configurations make up Scheduling Policies and let companies adhere to their business constraints and preferences?
A. Service Objectives and WorkRules
B. Service Contracts and Service Levels.
C. Service Objectives and Work Types
D. Service Levels and Work Rules
Answer: A
NEW QUESTION: 3
An administrator uses a ClearPass server to perform user authentication and download the role configuration that should be applied to the user's session. The server is associated to an AAA profile of a VAP. However, when a user connects to the SSID of the VAP, they are assigned the default role.
What must the administrator do to ensure that the role is downloaded and used?
A. Enable download role for CPPM in the VAP's WLAN profile.
B. Enable server derivation in the server group.
C. Enable server derivation in the AAA Server Group.
D. Enableserver derivation in the ClearPass' RADIUS configuration.
Answer: D
NEW QUESTION: 4
Refer to the exhibit.
When a network administrator is attempting an SSH connection to the device, in which order does the device check the login credentials?
A. RADIUS server, line password, local username
B. Line password, RADIUS server, local username
C. RADIUS server, local username, line password
D. Line password, local username, RADIUS server
Answer: C
Explanation:
Explanation/Reference:
Explanation:
sessions use the vty lines, where the configured authentication method is named "default." The AAA default login preference is stated in order from first to last, so here the "aaa authentication login default group radius local line" means to use RADIUS first, then if that fails use the local user database. Finally, if that fails use the line password.
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