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NEW QUESTION: 1
J. Ross and Sons Inc. has a target capital structure that calls for 40 percent debt, 10 percent preferred stock, and 50 percent common equity. The firm's current after-tax cost of debt is 6 percent, and it can sell as much debt as it wishes at this rate. The firm's preferred stock currently sells for $90 a share and pays a dividend of $10 per share; however, the firm will net only $80 per share from the sale of new preferred stock. Ross expects to retain $15,000 in earnings over the next year. Ross' common stock currently sells for $40 per share, but the firm will net only $34 per share from the sale of new common stock. The firm recently paid a dividend of $2 per share on its common stock, and investors expect the dividend to grow indefinitely at a constant rate of 10 percent per year. What will be the WACC above the break point?
A. 10.6%
B. 8.3%
C. 12.5%
D. 11.9%
E. 14.1%
Answer: D
Explanation:
Explanation/Reference:
Explanation:
Preferred stock return: 10/80 = 12.5% WACC = 6%(0.40) + 12.5%(0.10) + 16.5%(0.50) = 11.90%.
NEW QUESTION: 2
Scenario
Additional Information
Product Description
Quality notes from the Daily Log
The Director of Information Technology Division (DIT) has been asked to ensure that any changes to the outsourced staff employment contracts adhere to employment law. The DIT will review future job descriptions of the transferred staff before the final contract is signed with the selected service provider.
The service level agreement between MFH and the selected service provider will specify the type and quality of service required. The selected service provider must follow the industry standards for providing outsourced services.
MFH has a quality management system which contains a document control procedure for all its documentation, however this does not include change management.
All project documents will be subject to a quality review. Nominated products will require a formal approval record signed-off by the quality review chair.
Extract from the draft Quality Management Strategy (may contain errors) Introduction
1. This document defines the approach to be taken to achieve the required quality levels during the project.
2. The Project Board will have overall responsibility for the Quality Management Strategy.
3. Project Assurance will provide assurance on the implementation of the Quality Management Strategy.
Quality management procedure - Quality standards
4. The selected service provider will operate to industry standards for providing outsourced services.
5. MFH document standards will be used.
Records
6. A Quality Register will be maintained to record the planned quality events and the actual results from the quality activities.
7. Configuration Item Records will be maintained for each product to describe its status, version and variant.
8. Approval records for products that require them will be stored in the quality database.
Roles and responsibilities
9. The DIT will check that the employment contracts for outsourced staff adhere to employment law.
10. Team Managers will provide details of quality checks that have been carried out.
11. Team Managers will ensure that the Quality Register is updated with the names of team members who are involved in the review process.
12. The Senior User will review the Product Descriptions of the products to be produced by the selected service provider to ensure that they can be achieved.
The service level agreement contains a number of technical terms that are missing from its glossary of terms.
A. Raise an issue (request for change).
B. No action required.
C. Obtain agreement from the Director of Facilities Division to add these into the glossary of terms within the remaining +2 days tolerance.
D. Raise an issue (off-specification).
Answer: C
NEW QUESTION: 3
Der PC eines Benutzers zeigt beim Start die Fehlermeldung OS NOT FOUND an. Der Techniker startet den Computer von einer Wiederherstellungsdiskette und führt eine CHKDSK durch. Der CHKDSK meldet mehrere nicht behebbare Fehler. Welche der folgenden Aktionen sollte der Techniker als NÄCHSTES ausführen, um den Computer zu reparieren?
A. Formatieren Sie das Systemlaufwerk neu
B. Installieren Sie das Betriebssystem neu
C. Ersetzen Sie das Systemlaufwerk
D. Reparieren Sie das Betriebssystem
Answer: A
NEW QUESTION: 4
Within EnCase, what is the purpose of the temp folder?
A. This is the folder that will be automatically selected when the opy/unerase?feature is used. This is the folder that will be automatically selected when the ?opy/unerase?feature is used.
B. This is the folder used to hold copies of files that are sent to external viewers.
C. This is the folder that will automatically store an evidence file when the acquisition is made in DOS.
D. This is the folder that temporarily stores all bookmark and search results.
Answer: B