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NEW QUESTION: 1
Intelligent Semiconductor is considering issuing additional common stock. The current yield to maturity on the firm's outstanding senior long-term debt is 13%. The company's combined federal/state income tax is
35%. The risk-free rate of return is 5.6%, and the annual return on the broadest market index is expected to be 13.5%. Shares of Intelligent Semiconductor have a historical beta of 1.6. In the past, the firm has assumed a 265 basis point risk premium when calculating the cost of equity. What is the cost of equity for this proposed common stock issue using the Bond-Yield-plus-Risk-Premium approach?
A. 18.24%
B. 11.20%
C. 16.15%
D. The cost of equity using the Bond-Yield-plus-Risk-Premium approach cannot be calculated from the information provided.
E. 15.65%
Answer: E
Explanation:
Explanation/Reference:
Explanation:
The cost of issuing common stock can be calculated using several methods, including the Bond-Yield- Plus-Risk-Premium approach, Discounted Cash Flow method, or by using the Capital Asset Pricing Model.
In this example, you have been asked to calculate the cost of equity using the Bond-Yield-plus- Risk- Premium approach. This method is a rather ad hoc procedure used by finance professionals, and involves adding a subjective "risk premium" to the yield to maturity of the firm's outstanding debt. This approach should be used with a degree of caution, as the subjective nature of the procedure leaves significant room for variation in estimates. In using the Bond-Yield-Plus-Risk-Premium approach, a subjective risk premium is added to the yield to maturity of the firm's outstanding long-term debt, and the calculation of the correct answer in this case is as follows: {yield to maturity of the outstanding senior debt 13% + subjective risk premium 2.65%}=15.65%.

NEW QUESTION: 2
Which two properties must you identify in order to proceed? (Each correct answer presents part of the solution. Choose two.)
A. project implementation phase
B. engagement type
C. product version
D. product
Answer: B,D
Explanation:
1. In the Microsoft Dynamics Sure Step main window, click theProjectstab.
2.Click Project List, and then click Create New Project.
3.On the Sure Step Project Creation Wizard welcome page, click Next.

4.On the "Add new project data" window, choose aSolution,Product, andEngagement
Type. Type your project name and optionally fill in the rest of the fields. ClickNextto
continue.
Etc.

NEW QUESTION: 3
For which two purposes would the use of VLAN's be beneficial? (Choose two.)
A. to isolate SSH traffic from other IP traffic
B. to isolate UDP from TCP traffic in the IP network
C. to isolate management traffic from other IP traffic
D. to separate LAN from WAN traffic
E. to isolate iSCSI traffic from LAN/WAN traffic
Answer: C,E

NEW QUESTION: 4
Which two statements about the OSPF authentication configuration are true? (Choose two.)
A. Type-3 authentication is a clear-text password authentication.
B. In MD5 authentication, the password is encrypted when it is sent.
C. There are three types of OSPF authentication options available.
D. OSPF authentication is required in area 0.
E. In MD5 authentication, the password never goes across the network.
F. Null authentication includes the password in clear-text.
Answer: C,E

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