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NEW QUESTION: 1
The management of Clay Industries have adhered to the following capital structure: 50% debt, 45% common equity, and 5% perpetual preferred equity. The following information applies to the firm: Before- tax cost of debt = 7.5% Combined state/federal tax rate = 35% Expected return on the market = 14.5% Annual risk-free rate of return = 5.25% Historical Beta coefficient of Clay Industries Common Stock = 1.15 Annual preferred dividend = $1.35 Preferred stock net offering price = $17.70 Expected annual common dividend = $0.45 Common stock price = $30.90 Expected growth rate = 11.75% Subjective risk premium
3.8% Given this information, and using the Capital Asset Pricing Model to calculate the component cost of common equity, what is the Weighted Average Cost of Capital for Clay Industries?
A. 9.968%
B. 15.31%
C. 9.92%
D. 11.30%
E. 10.05%
F. The WACC for Clay Industries cannot be calculated from the information.
Answer: A
Explanation:
Explanation/Reference:
Explanation:
The calculation of the Weighted Average Cost of Capital is as follows: {fraction of debt * [yield to maturity on outstanding long-term debt][1-combined state/federal income tax rate]} + {fraction of preferred stock *
[annual dividend/net offering price]} + {fraction of common stock * cost of equity}. The cost of common equity can be calculated using three methods, the Capital Asset Pricing Model (CAPM), the Dividend- Yield-plus-Growth-Rate (or Discounted Cash Flow) approach, and the Bond- Yield-plus-Risk-Premium approach. In this example, you are asked to calculate the cost of common equity using the Capital Asset Pricing Model (CAPM). This approach involves the following equation: {risk-free rate +beta[expected return on the market - risk-free rate]}. Specifically, the calculation of the component cost of common equity using the CAPM is as follows: {[5.25% + 1.15(14.5%-5.25%]} = 15.888%. The after-tax cost of debt can be found by multiplying the yield to maturity on the firm's outstanding long-term debt (7.5%) by (1-tax rate). Using this method, the after-tax cost of debt is found as 4.875%. The calculation of the cost of perpetual preferred stock is relatively straightforward, simply divide the annual preferred dividend by the net offering price. Using this method, the cost of preferred stock is found as 7.627%. Incorporating these figures into the WACC equation gives the answer of 9.968%.

NEW QUESTION: 2
Which HP AllianceONE partner solution provides simplified remote network management using a zl Services Module installed in the 5400 zl?
A. Aastra MX-ONE
B. Avaya Communication Manager
C. NetScout nGenius Integrated Agent
D. Microsoft Survivable Branch Communication
Answer: D
Explanation:
Software component of P Survivable Branch Communication zl Module powered by Microsoft
*Microsoft Lync Server 2010
*Survivable Branch
*Mediation Server
*PSTN media gateway ** Remote managementof
Note #1: HP Survivable Branch Communication zl Module (SBM) powered by Microsoft Lync provides survivable branch services, such as external phone call capability, while sustaining internal peer-to-peer communications when the data center cannot be reached. SBM combines Microsoft Lync survivable branch application and software from HP, including a public switched telephone network (PSTN) to Voice over Internet Protocol (VoIP) gateway, a graphical user interface (GUI), management interfaces, and an application programming interface (API) to the switch itself, all of which are integrated on a module that fits in the chassis of HP E8200 zl and E5400 zl Switch series products.
The HP Survivable Branch Communication zl Module delivers:
*Survivability: Branch offices can now better maintain network availability in a Communications Server "14" environment with a reliable distributed public switched telephone network backup in case of wide area network failure.
*Simplicity: Organizations can increase efficiency and scalability by rapidly installing, deploying and migrating from legacy PBX and key systems with centralized remote management, across branch offices for Microsoft Communications Server "14" environments.
*Cost efficiency: Organizations can reduce costs by eliminating specialized technology infrastructure, expertise and management tasks required at branch locations.
Reference: HP Survivable Branch Communication zl Module powered
by Microsoft Lync, QuickSpecs, Product Overview
http://h20195.www2.hp.com/v2/GetPDF.aspx/c02811720.pdf
References: HP Networking > AllianceONE: Networking Specialization > Application,
HP Survivable Branch Communication zl Module powered by Microsoft Lync

NEW QUESTION: 3
Which function does FECC provide?
A. the ability to transfer calls between the SIP and H.323 protocols
B. the ability to switch between content channels
C. the ability to pan, tilt, and zoom the camera at the far end
D. the ability to send DTMF tones
Answer: C

NEW QUESTION: 4
Scenario: A Citrix Administrator discovers that a high number of Desktop OS machines are
displaying as 'Unregistered.' The administrator successfully logs in to one of the affected Desktop OS machines as a domain user. All of the affected Desktop OS machines are on the same hosting infrastructure. Several Desktop OS machines on the same hosting infrastructure have registered successfully. Users in the environment have NOT reported any issues.
Why are the Desktop OS machines displaying as 'Unregistered'?
A. The Desktop OS machines computer accounts have been deleted from Active Directory.
B. The Broker service is NOT running on the Delivery Controllers.
C. The difference in the system date and time settings on the Desktop OS machines and the Delivery Controller is greater than 5 minutes.
D. The Citrix License Server is NOT communicating over port 27000.
Answer: C

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