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NEW QUESTION: 1
Which of the following equations correctly illustrates the calculation of the Weighted Average Cost of Capital (WACC)?
A. {Average cost of equity + average cost of debt + average cost of preferred stock}* subjective divisor
B. {{Percentage of debt * [coupon on outstanding debt * (1 + combined state/federal tax rate)]} +
{percentage of preferred stock * [annual preferred dividend/(offering price - flotation costs)]} +
{percentage of common equity * cost of common equity}}
C. None of these answers
D. {{Percentage of debt* [yield to maturity of outstanding debt * (1 - combined state/federal tax rate)]} +
{percentage of preferred stock * [annual preferred dividend/(offering price - flotation costs)]} +
{percentage of common equity * cost of common equity}}
E. {Percentage of debt * [coupon on outstanding debt * (1 + combined state/federal tax rate)]} +
{percentage of preferred stock * [annual preferred dividend/(offering price + flotation costs)]} +
{percentage of common equity * cost of common equity}}
F. {{Percentage of debt* [coupon on outstanding debt * (1 - combined state/federal tax rate)]} +
{percentage of preferred stock * [annual preferred dividend/(required rate of return)]} + {percentage of common equity * cost of common equity}}
Answer: D
Explanation:
Explanation/Reference:
Explanation:
The Weighted Average Cost of Capital is a fundamentally important concept within the field of corporate finance, and the CFA candidate should have a complete understanding of both the mechanics of the WACC figure, as well as the relationships between its components. In calculating the cost of outstanding common equity, there exist three distinct methods, the Dividend-Yield-plus- Growth-Rate, or Discounted Cash Flow approach, the Capital Asset Pricing Model (CAPM), and the Bond-Yield-plus-Risk-Premium approach. It is important for the CFA candidate to have a complete understanding of each method, along with their weaknesses and advantages.

NEW QUESTION: 2
An engineer is defining a new Cisco Unified Communications Manager group. Which two features are provided in the Cisco Unified CM group? (Choose two.)
A. system IP address
B. Cisco Unified CM redundancy
C. prioritized list of up to two Cisco Unified CM servers
D. registration with different clusters in the same network
E. call load balancing
Answer: B,E

NEW QUESTION: 3
Which of the following is a characteristic of a subnet created with a prefix length of /32?
A. The subnet is reserved for a multicast address groups.
B. The subnet is configured for a point-to point link.
C. The subnet has only one address reserved for a loopback interface or the system interface.
D. The subnet has a broadcast address.
Answer: C

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