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NEW QUESTION: 1
A firm's earnings break point equals $98 million. Its net income is $58 million and it is committed to a dividend payout ratio of 30%. It's after-tax cost of debt equals 9% and its shareholders demand an expected rate of return of 15%. The firm's WACC equals ________.
A. 9.8%
B. 12.2%
C. 10.3%
D. 11.5
Answer: D
Explanation:
Explanation/Reference:
Explanation:
The retained earnings of the firm = $58*0.7 = $40.6 million. If the earnings breakpoint is $98 million then the firm must issue $(98-40.6) = $57.4 million in debt to maintain constant D/E ratio. This implies that the firm's D/E ratio equals 57.4/40.6 = 1.41. Debt comprises 57.4/98 = 58.57% of the capital structure.
Therefore, WACC = 0.5857*0.09 + 0.4143*15% = 11.49%.
NEW QUESTION: 2
Which three options will you most likely use to accelerate storage access for different applications based on the required IOPS?
(Choose three.)
A. iSCSI
B. content-based read cache
C. hyper-convergence
D. SSD storage devices
E. FCoE
F. Fusion I/O or LSI
Answer: C,D,F
NEW QUESTION: 3
A company's Auditor implemented a compliance requirement that all Amazon S3 buckets must have logging enabled.
How should the SysOps Administrator ensure this compliance requirement is met, while still permitting Developers to create and use new S3 buckets?
A. Create an AWS Lambda function to delete the S3 buckets if logging is not turned on.
B. Implement IAM policies to allow only the Storage team to create S3 buckets.
C. Add the AWS Config managed rule S3_BUCKET_LOGGING_ENABLED.
D. Add AWS CloudTrail logging for the S3 buckets.
Answer: C