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NEW QUESTION: 1
The three elements needed to estimate the cost of equity capital for use in determining a firm's weighted
average cost of capital are:
A. Current earnings per share, expected growth rate in earnings per share, and current book value per
share of common stock.
B. Current dividends per share, expected growth rate in dividends per share, and current market price per
share of common stock.
C. Current dividends per share, expected growth rate in earnings per share, and current market price per
share of common stock.
D. Current earnings per share, expected growth rate in dividends per share, and current market price per
share of common stock.
Answer: B
Explanation:
Choice "d" is correct. The three elements needed to estimate the cost of equity capital are:
1 . Current dividends per share (D)
2 . Expected growth rate in dividends (g) and
3 . Current market price per share of common stock (P)
The question asks the candidate to identify the three elements needed to estimate the cost of equity
capital for use in determining a firm's weighted average cost of capital. The cost of equity capital is
defined by the following mathematical expression where the cost of capital or return (R) is: R = D/P + g
Choice "d" is consistent with our text, the Explanation: and the Gordon Growth Model. Use of earnings per
share, as suggested by choice "a" is sometimes referred to as the constant growth model and assumes
that all earnings per share are either ultimately distributed or reinvested for the benefit of the shareholder.
Earnings are anticipated to grow to infinity.
NEW QUESTION: 2
Which statement about using MPLS for WAN connectivity is true?
A. It can be deployed in redundant and nonredundant topologies.
B. It must be deployed in a redundant topology.
C. It can be deployed using LAN aggregation.
D. it cannot be deployed using a single carrier.
Answer: D
NEW QUESTION: 3
How do you defend against ARP Spoofing? Select three.
A. Place static ARP entries on servers, workstation and routers
B. Use private VLANS
C. Use ARPWALL system and block ARP spoofing attacks
D. Tune IDS Sensors to look for large amount of ARP traffic on local subnets
Answer: A,B,C
Explanation:
ARPwall is used in protecting against ARP spoofing.
Incorrect answer:
IDS option may works fine in case of monitoring the traffic from outside the network but not from internal hosts.
NEW QUESTION: 4
Which time elements can be reduced by a reduction strategy? Note: There are 3 correct answers to this question.
A. Wait time
B. Float after production
C. Goods receipt processing time
D. Queue time
E. Move time
Answer: B,D,E
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