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NEW QUESTION: 1
Why will a switch never learn a broadcast address?
A. Broadcasts only use network layer addressing.
B. Broadcast frames are never sent to swiches.
C. A broadcast frame is never forwarded by a switch.
D. Broadcast addresses use an incorrect format for the switching table.
E. A broadcast address will never be the source address of a frame.
Answer: E
Explanation:
Explanation/Reference:
Switches only put source MAC addresses into their switching table: they want to know from which direction a frame came from, so they can send frames back in that direction as required. The broadcast address is never the source address, so switches will never put the broadcast address into their switching tables.
NEW QUESTION: 2
Which of the following statements is true?
A. Given a small increase in the rate of inflation, a small increase in risk premium for a stock, and a larger decrease in the return on equity, one would expect the required rate of return on the stock to increase, the growth rate to decrease, and the earnings multiplier to increase.
B. Given a large decrease in the rate of inflation and the risk premium for a stock, and a large increase in the return on equity, one would expect the required rate of return on the stock to decrease, the growth rate to increase, and the earnings multiplier to increase.
C. Given a large increase in the rate of inflation, a small decrease in the risk premium for a stock, and a large decrease in the return on equity, one would expect the required rate of return on the stock to decrease, the growth rate to decrease, and the earnings multiplier to decrease.
D. Given a small decrease in the real risk-free rate, a large increase in the risk premium for a stock, and a large decrease in the return on equity, one would expect the required rate of return on the stock to increase, the growth rate to decrease, and the earnings multiplier to increase.
Answer: B
Explanation:
Explanation/Reference:
Explanation:
The direction of change approach to estimating an earnings multiplier begins with the current earnings multiplier and estimates the direction of change for the dividend payout ratio and the variables that influence the required rate of return and growth rate. The required rate of return is positively correlated with the real risk-free rate, the rate of inflation, and the risk premium. The growth rate is positively correlated with the return on equity and earnings retention rate. The earnings multiplier is positively correlated with the growth rate, and negatively correlated with the required rate of return.
NEW QUESTION: 3
Limited partnerships try to avoid recapture because:
A. it turns potential capital gains into current taxable income
B. it may subject the partnership to the add-on tax
C. it always increases the investor's tax bracket
D. it increases the risk of a tax audit
Answer: A
Explanation:
Explanation/Reference:
Explanation: it turns potential capital gains into current taxable income. Recapture is taxed as ordinary income, not capital gain. The other choices are not true.
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