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NEW QUESTION: 1
You observe a stock that has a risk of premium of 6.5% and is expected to pay a dividend of $1.50 into perpetuity. Furthermore, Treasury Bills are expected to yield 5% over the same period of time. What amount is the most that you would pay for this stock?
A. $21.78.
B. $15.62.
C. $13.04
Answer: C
Explanation:
P (0) = D(1)/(k-g)In this case:D(1) is $1.50, G = 0, since there is no growth in dividends, and
K can be derived as follows:We know that the risk premium or ( k- Rf) = 6.5%, we also know that Rf = 5%, therefore, subtracting Rf in the risk premium equation gives us:k-5%=6.5% => k = 11.5%Hence P =
1.5/11.5% = $13.04.
NEW QUESTION: 2
A. Option B
B. Option A
C. Option C
D. Option D
E. Option F
F. Option E
Answer: B,C
Explanation:
Link State Routing Protocols http://www.ciscopress.com/articles/article.asp?p=24090&seqNum=4
Link state protocols, sometimes called shortest path first or distributed database protocols, are built around a well-known algorithm from graph theory, E.W.Dijkstra'a shortest path algorithm. Examples of link state routing protocols are: Open Shortest Path First (OSPF) for IP The ISO's Intermediate System to Intermediate System (IS-IS) for CLNS and IP DEC's DNA Phase V Novell's NetWare Link Services Protocol (NLSP) Although link state protocols are rightly considered more complex than distance vector protocols, the basic functionality is not complex at all:
1.Each router establishes a relationship-an adjacency-with each of its neighbors.
2.Each router sends link state advertisements (LSAs), some
3.Each router stores a copy of all the LSAs it has seen in a database. If all works well, the databases in all routers should be identical.
4.The completed topological database, also called the link state database, describes a graph of the internetwork. Using the Dijkstra algorithm, each router calculates the shortest path to each network and enters this information into the route table.
NEW QUESTION: 3
HOTSPOT
You have the following table:
Instructions: Use the drop-down menus to select the answer choice that completes each statement. Each correct selection is worth one point.
Answer:
Explanation:
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