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NEW QUESTION: 1
Consider the following information:
Borrowing Rate 10%
Marginal Tax Rate 40%
Preferred Stock Par Price $50
Preferred Dividend $5
Preferred Stock floatation cost 2.0%
Cost of common equity 15.0%
Preferred Stock issued at Par
The Optimal Capital Structure is 45% debt, 50% common equity, and 5% preferred stock. Credit Rating BB
+
What is the firm's Weighted Average Cost of Capital (WACC)?
A. 10.71%
B. 7.14%
C. 2.5%
D. 28.00%
E. 9.0%
F. 9.06%
Answer: A
Explanation:
Explanation/Reference:
Explanation:
The firm's Weighted Average Cost of Capital (WACC) is a weighted average of the component cost of capital. In this case 10%(borrowing rate) x (1-.4)Tax savings = 6% is the component cost of debt. $5 (preferred dividend) / 49(Par minus floatation cost) = 10.2% is the component cost of preferred stock. Thus the WACC = .45(6%) + .5(15%) + .05(10.2%) = 10.71%

NEW QUESTION: 2
組織の情報セキュリティプログラムの有効性を理解するために、MOSTがレビューに役立つのは次のうちどれですか？
A. Key risk indicators (KRls)
B. External Audit results
C. Cost-benefit analysis
D. Balanced scorecard
Answer: A

NEW QUESTION: 3
A technician receives a helpdesk ticket about an employee having a problem sending text messages with a company Android smartphone. It has been determined that it is not a carrier issue. Which of the following should the technician perform FIRST?
A. Perform a soft restore
B. Replace the SIM card
C. Reformat the MicroSD card
D. Verify data connectivity
Answer: D

NEW QUESTION: 4
As part of a customer data management solution, it is necessary to store its unified data on a low cost solution. A tape library will provide low cost, but the customer's access to write to tape directly is denied.
Which recommendation enables the customer's application to access the tape devices?
A. Implement IBM Spectrum Virtualize with IBM Spectrum Archive enabled, allowing IBM LTO Drives to act as disks
B. Implement IBM Spectrum Archive using LTO-6 or TS1150 tape drives in the library
C. Implement IBM ProtecTIER with IBM Spectrum Archive, allowing management of tape and VTL disk under a single controller
D. Implement IBM Spectrum Archive Single Drive Edition on all IBM supplied LTO-4, LTO-5 and LTO-6 drives in the library.
Answer: B

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