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NEW QUESTION: 1
Consider the following information:
Borrowing Rate 10%
Marginal Tax Rate 40%
Preferred Stock Par Price $100
Preferred Dividend $10
Preferred Stock floatation cost 2.5%
Cost of common equity 12.0%
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. 9.21%
B. 2.5%
C. 8.0%
D. 9.0%
E. 7.21%
F. 28.00%
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. $10 (preferred dividend) / 97.5(Par minus floatation cost) = 10.25% is the component cost of preferred stock.
Thus the WACC = .45(6%) + .5(12%) + .05(10.25%) = 9.21%

NEW QUESTION: 2
You are creating a distributed application by using Microsoft .NET Framework 3.5. You use Windows Communication Foundation to create the application. You plan to perform the following tasks:
You write the following code segment.

You need to ensure that only those client applications that provide credentials belonging to the AdminGroup role can access the Remove method. What should you do?
A. Add the following attribute to the Service class. [PrincipalPermission(SecurityAction. Demand, Name="IService. Remove", Role="AdminGroup")]
B. Add the following attribute to the Remove method of the Service class. [PrincipalPermission(SecurityAction. Demand, Role="AdminGroup")]
C. Add the following attribute to the Remove method of the IService interface. [PrincipalPermission(SecurityAction. Demand, Role="AdminGroup")]
D. Add the following attribute to the Service class. [PrincipalPermission(SecurityAction.Demand, Name="Remove", Role="AdminGroup")]
Answer: B

NEW QUESTION: 3
A large filesystem will be restored. Backup data is spread across one hundred tapes and all four tape drives are currently used. What can be done to optimize the restore process?
A. update the client to use more mount points for the restore
B. use MOVE NODEDATA to consolidate data on a disk pool
C. set up more parallel restore sessions
D. tune the client option, resource utilization
Answer: A
Explanation:
Explanation/Reference:
To run eight reclamation processes simultaneously, you need a total of at least 16 mount points and 16 drives. The device class for the two storage pools must have a mount limit of at least 16.
References: IBM Spectrum Protect for Windows Version 8.1.0, Administrator's Reference, p 1518