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NEW QUESTION: 1
Youngsten Electric is contemplating new projects for the next year that will require $30,000,000 of new
financing. In keeping with its capital structure, Youngsten plans to use debt & equity financing as follows:
* Issue $10,000,000 of 20-year bonds at a price of 101.5, with a coupon of 10%, and flotation costs of
2 .5% of par value.
* Use internal funds generated from earnings of $20,000,000.
The equity market is expected to earn 15%. U.S. treasury bonds currently are yielding 9%. The beta
coefficient for Youngsten's common stock is estimated to be .8. Youngsten is subject to a 40% corporate
income tax rate. Youngsten has a price/earnings ratio of 10, a constant dividend payout ratio of 40%, and
an expected growth rate of 12%.
An analysis of Youngsten's planned equity financing using Capital Asset Pricing Model (or Security
Market Line) would incorporate only the:
A. Current U.S. Treasury bond yield, the price/earnings ratio, and the beta coefficient.
B. Current U.S. Treasury bond yield and the dividend payout ratio.
C. Expected market earnings, the current U.S. Treasury bond yield, and the beta coefficient.
D. Expected market earnings and the price' earnings ratio.
Answer: C
Explanation:
Choice "a" is correct. The capital asset pricing model formula is:
R = RF + B (RM-RF)
Where:
R = Required return rate on equity
RF = Risk free rate earned on U.S. treasury bonds.
B = Beta coefficient
RM = Expected market return (earnings).
Choices "b", "c", and "d" are incorrect, per the above Explanation:.
NEW QUESTION: 2
With a class of visual learners, which of the following methods is BEST to keep the learners involved? (Select TWO).
A. Distribute written directions or write them on the board.
B. Have test questions or directions read aloud.
C. Have the learners memorize the directions.
D. Teach by lecture and break the learners into study groups.
E. Use flow charts and diagrams for note taking.
Answer: A,E
NEW QUESTION: 3
Which of the following statements about SmartErase is/are true.
A) SmartErase allows a disk whose data has been erased to be reused after a dab destruction task is completed?
B) SmartErase deletes data, that belongs to a specific LUN, permanently from disks to prevent it from being recovered by unauthorized users using residual data?
A. Statement A is false and Statement B is true.
B. Both statements are true.
C. Both statements are false.
D. Statement A is true and Statement B is false.
Answer: A
NEW QUESTION: 4
Which H.323 functionality exists on the Cisco Meeting Server?
A. H.323 registration, call control and H.323-to-SIP Interworking
B. H.323 registration and H.323-to-SIP Interworking, but no call control
C. H.323 registration and call only
D. H.323-to-SIP Interworking
Answer: D