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NEW QUESTION: 1
J. Ross and Sons Inc. has a target capital structure that calls for 40 percent debt, 10 percent preferred stock, and 50 percent common equity. The firm's current after-tax cost of debt is 6 percent, and it can sell as much debt as it wishes at this rate. The firm's preferred stock currently sells for $90 a share and pays a dividend of $10 per share; however, the firm will net only $80 per share from the sale of new preferred stock. Ross expects to retain $15,000 in earnings over the next year. Ross' common stock currently sells for $40 per share, but the firm will net only $34 per share from the sale of new common stock. The firm recently paid a dividend of $2 per share on its common stock, and investors expect the dividend to grow indefinitely at a constant rate of 10 percent per year. What is the firm's cost of retained earnings?
A. 12.5%
B. 18.0%
C. 10.0%
D. 15.5%
E. 16.5%
Answer: D
Explanation:
Explanation/Reference:
Explanation:
k(s) = $2.20/$40 + 0.10 = 15.5%.
NEW QUESTION: 2
A customer has production and disaster recovery VMAX3 arrays. There is limited bandwidth between the sites. The amount of data which will be replicated by using SRDF to the disaster recovery site is slightly more than the available bandwidth allows.
Which action is needed to accommodate the customer's need?
A. Enable the compression license
B. Enable the Fast Write feature on the SRDF Group
C. Enable compression on the RA Director
D. Install an optional compression module
Answer: D
NEW QUESTION: 3
In Microsoft Dynamics CRM, you create a custom Event entity tor storing events and a custom Event Type entity for storing possible Event Types for events.
You want to store one or more of these Event Types in an Event.
What should you create?
A. a native N:N relationship between Event and Event Type
B. a Lookup attribute in the Event entity
C. a Multiple Lines of Text attribute in the Event entity
D. an Option Set attribute in the Event entity
Answer: B
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