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NEW QUESTION: 1
Gulf Electric Company (GEC) uses only debt and equity in its capital structure. It can borrow unlimited amounts at an interest rate of 10 percent so long as it finances at its target capital structure, which calls for
55 percent debt and 45 percent common equity. Its last dividend was $2.20; its expected constant growth rate is 6 percent; its stock sells on the NYSE at a price of $35; and new stock would net the company $30 per share after flotation costs. GEC's tax rate is 40 percent, and it expects to have $100 million of retained earnings this year. GEC has two projects available: Project A has a cost of $200 million and a rate of return of 13 percent, while Project B has a cost of $125 million and a rate of return of 10 percent. All of the company's potential projects are equally risky. What is GEC's cost of equity from newly issued stock?
A. 12.29%
B. 13.33%
C. 10.00%
D. 13.77%
E. 12.66%
Answer: D
Explanation:
Explanation/Reference:
Explanation:
k(d) (interest rate on the firm's new debt) = 10%
k(d)(1 - T) (after-tax-component cost of the debt) = 10%(0.6) = 6%.
D/A = 55%; D0 = $2.20; g = 6%; P0 = $35; PN = $35; T = 40%.
Retained earnings = $100M; BP(RE) = $100M/ .45 = $222.22M.
k(s) (component cost of retained earnings) = $2.33/$35 + 6% = 12.66%.
k(e) (component cost of external equity) = $2.33/$30 + 6% = 13.77%.
NEW QUESTION: 2
What is the maximum number of targets (standard or migrate) that you can configure for a JMS server?
A. No limit
B. 0
C. 1
D. 2
Answer: A
Explanation:
To configure the migratable target servers for JMS-related service migration:
1.If you have not already done so, in the Change Center of the Administration Console, click Lock
& Edit (see Use the Change Center).
2.In the Domain Structure tree, expand Environment, then select Migratable Targets.
3.On the Summary of Migratable Targets page, click New.
On the Create a new Migratable Target page:
In Name, enter a name for the migratable target.
In Cluster, select a configured cluster for the migratable target.
Reference: Configure migratable targets for JMS-related services
NEW QUESTION: 3
Your network contains an on-premises Active Directory domain. The domain contains the servers shown in the following table.
You plan to implement Azure Advanced Threat Protection (ATP) for the domain.
You install an Azure ATP standalone sensor on Server1.
You need to monitor the domain by using Azure ATP.
What should you do?
A. Install the Microsoft Monitoring Agent on Server!.
B. Install the Microsoft Monitoring Agent on DC1.
C. Configure port mirroring for DC1.
D. Configure port mirroring for Server 1.
Answer: C
Explanation:
Reference:
https://docs.microsoft.com/en-us/azure-advanced-threat-protection/configure-port-mirroring
NEW QUESTION: 4
Click the Exhibit button.
In the exhibit, all routers within each AS are configured for Anycast RP. All intra-AS routers
are configured within the same MSDP mesh group. Inter-AS multicast has been enabled using MSDP without MSDP mesh groups. Which statement is true?
A. R6 and R7 should have an MSDP peering, because multiple MSDP AS hops are not allowed.
B. SA messages received from R2 are not forwarded to R5, R7, and R8.
C. Duplicate SA messages may be received in AS2.
D. SA messages from R5 are not forwarded to AS1.
Answer: C
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