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NEW QUESTION: 1
A company's latest accounts show profit after tax of $20.0 million, after deducting interest of $5.0 million. The company expects earnings to grow at 5% per annum indefinitely.
The company has estimated its cost of equity at 12%, which is included in the company WACC of 10%.
Assuming that profit after tax is equivalent to cash flows, what is the value of the equity capital?
Give your answer to the nearest $ million.
$ ? million
Answer:
Explanation:
300, 300000000
NEW QUESTION: 2
The Chief Executive Officer (CEO) of a small start-up company wants to set up offices around the country for the sales staff to generate business. The company needs an effective communication solution to remain in constant contact with each other, while maintaining a secure business environment. A junior-level administrator suggests that the company and the sales staff stay connected via free social medi a. Which of the following decisions is BEST for the CEO to make?
A. Social media is an effective solution because it implements SSL encryption.
B. Social media is an effective solution because it is easily adaptable to new situations.
C. Social media is an ineffective solution because the policy may not align with the business.
D. Social media is an ineffective solution because it is not primarily intended for business applications.
Answer: C
Explanation:
Social media networks are designed to draw people's attention quickly and to connect people is thus the main focus; security is not the main concern. Thus the CEO should decide that it would be ineffective to use social media in the company as it does not align with the company business.
Incorrect Answers:
A: Social media is not designed to be easily adaptable to new situations in a workplace.
C: Social media does not necessarily make use of SSL encryption since it is designed to draw people's attention and connect them quickly.
D: Social media, though a great channel for communication is not intended for business applications.
References:
Gregg, Michael, and Billy Haines, CASP CompTIA Advanced Security Practitioner Study Guide, John Wiley & Sons, Indianapolis, 2012, pp. 290-293
NEW QUESTION: 3
Which of the following software packages is a mail server?
A. MySQL
B. GIMP
C. Postfix
D. Apache
E. Thunderbird
Answer: C
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