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NEW QUESTION: 1
Returns on the market and Company Y's stock during the last 3 years are shown below:
Year Market Company Y
1995 -24% -22%
1996 10 13
1997 22 36
The risk-free rate is 5 percent, and the required return on the market is 11 percent. You are considering a low-risk project whose market beta is 0.5 less than the company's overall corporate beta. You finance only with equity, all of which comes from retained earnings. The project has a cost of $500 million, and it is expected to provide cash flows of $100 million per year at the end of Years 1 through 5 and then $50 million per year at the end of Years 6 through 10. What is the project's NPV (in millions of dollars)?
A. $15.75
B. $10.42
C. $9.26
D. $7.10
E. $12.10
Answer: B
Explanation:
Explanation/Reference:
Explanation:
Step 1 Run a regression to find the corporate beta. Market returns are the X-input values, while Y's returns are the Y-input values. Beta is 1.2102.
Step 2 Find the project's estimated beta by subtracting 0.5 from the corporate beta. The project beta is thus 1.2102 - 0.5 = 0.7102.
Step 3 Find the company's cost of equity, which is its WACC because it uses no debt: k(s) = WACC = 5%
+ (11% - 5%)0.7102 = 9.26%.
Step 4 Now find the project's NPV (inputs are in millions):
CF(0) = -500
CF(1-5) = 100
CF(6-10) = 50
I = 9.26%
Solve for NPV = $10.42 million.

NEW QUESTION: 2
Which of the following describes an IBM i solution that is designed to prevent long-running or excessive query jobs from impacting the overall performance of a system?
A. The IBM i Universal DB2 Query subsystem (QQUERY) defines how, where, and how many queries may operate, as well as which resources the request may use.
B. The DB2 Predictive Query Governor can prevent the initiation of a query if the estimated run time exceeds a user defined limit.
C. DB2 Query Management Facility provides a comprehensive set of features and functions to control query, reporting, and analytics jobs.
D. DB2 uses the Open Query File manager to provide a filter between the query and database records which gradually reduces job priority over time.
Answer: B

NEW QUESTION: 3
HOTSPOT
Sie verwalten eine geschützte Struktur im TPM-vertrauenswürdigen Bestätigungsmodus.
Sie planen, eine Vorlagenfestplatte für virtuelle Maschinen für geschützte virtuelle Maschinen zu erstellen.
Sie müssen die Festplatte der virtuellen Maschine erstellen, mit der Sie die Vorlage generieren.
Wie sollten Sie die Festplatte konfigurieren? Um zu antworten, wählen Sie die entsprechenden Optionen im Antwortbereich aus.
HINWEIS: Jede richtige Auswahl ist einen Punkt wert.

Answer:
Explanation:
Explanation

References:
https://docs.microsoft.com/en-us/windows-server/virtualization/guarded-fabric-shielded-vm/guarded-fabric-conf
https://docs.microsoft.com/en-us/system-center/dpm/what-s-new-in-dpm-2016?view=sc-dpm-1801

NEW QUESTION: 4
You need to identify the root cause for the error that User5 is experiencing.
What should you check?
A. Fixed asset determination rules
B. Fixed asset posting profiles
C. Fixed asset depreciation profiles
D. Fixed asset books
E. Fixed asset rules
Answer: A