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NEW QUESTION: 1
Which of the following statements about the cost of capital is TRUE?
A. New common equity used to finance projects is usually dilutive.
B. The component cost of retained earnings equals the required rate of return on new stock.
C. Using the marginal cost of capital (MCC) is superior to the weighted average cost of capital (WACC) because the MCC assumes different risks across projects.
D. A firm can shift its retained earnings breakpoint by changing the dividend policy.
Answer: D
Explanation:
Explanation/Reference:
Explanation:
The firm can shift the break point of the MCC schedule by changing its payout ratio through the dividend policy. Remember that the dividend payout ratio is in the numerator of the calculation that dictates the breakpoint between lower cost internally generated equity (retained earnings) and higher cost externally generated equity (common stock).
The other choices are false. New common equity is not by definition dilutive. However, if the firm does not earn the cost of new common equity on the portion of the investment that is financed with the new issue, the firm's earnings per share will fall. The MCC is the cost of the last dollar raised by the company and assumes constant risk across projects. The component cost of retained earnings equals the required rate of return on existing stock.
NEW QUESTION: 2
Refer to the exhibit.
With five devices connected to an AP radio, this Cisco WCS alarm was activated. Which action will prevent this alarm from appearing again when 10 devices connect to the AP radio?
A. Within Cisco WCS, enable spectrum load balancing for this AP.
B. Within Cisco WCS, modify the alarm settings to activate on 11 or more clients.
C. Within Cisco WCS, modify the Max client event parameters to trigger an alarm when 11 or more clients associate to the radio.
D. Within Cisco WCS, create an RRM template to modify the Max clients setting and apply it to all controllers.
Answer: D
NEW QUESTION: 3
The custom formula is tgtPct*salary. Looking at the background element, what adjustment must be made?
Please choose the correct answer.
Response:
A. The tgtPct and salary fields must both be float fields
B. The tgtPct and salary fields must both be numeric fields
C. The basis field must be hidden in the background element
D. The basis field must be deleted from background element
Answer: C