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NEW QUESTION: 1
Ivan Johnson is reviewing the investment merits of BioTLab, a fast-growing biotechnology company.
BioTLab has developed several drugs, which arc being licensed to major drug companies. BioTLab also has several drugs in phase III trials (phase III trials are the last testing stage before FDA approval).
Johnson notes that two drugs recently received approval which should provide BioTLab solid revenue growth and generate predictable cash flow well into the future. Based on the potential for the two drugs, BioTLab's estimated annual cash flow growth rate for the next two years is 25%, and long-term growth is expected to be 12%. Because of BioTLab's attractive investment opportunities, the company does not pay a dividend. BioTLab's current weighted average cost of capital is 15% and its stock is currently trading at
$50 per share. Financial information for BioTLab for the most recent 12 months is provided below:
* Net working capita! excluding cash increased from $7,460,000 to $9,985,000;
* Book value increased from $81,250,000 to $101,250,000.
* BioTLab currently has no debt.
* Research facilities and production equipment were purchased for $8,450,000.
* BioTLab held non-operating assets in the amount of $875,000.
* Net income for the 12 months was $20,000,000.
* BioTLab has a marginal tax rate of 40%.
* Noncash charges for depreciation and restructuring for the 12 months were $1,250,000.
BioTLab's management has indicated an interest in establishing a dividend and will fund new drug research by issuing additional debt.
Johnson also reviews a competitor to BioTLab, Groh Group, which has a larger segment operating in a highly cyclical business. The Groh Group has a debt to equity ratio of 1.0 and pays no dividends. In addition, Groh Group plans to issue bonds in the coming year.
Which model would be most appropriate in valuing the Groh Group?
A. FCFF model.
B. FCFE model.
C. Dividend Discount model.
Answer: A
Explanation:
Explanation/Reference:
Explanation:
The FCFF model is better than the FCFE model in valuing debt laden, cyclical companies and companies with a changing capital structure. Since Groh Group does not pay a dividend, the DDM model would be the least appropriate model to value the company. (Study Session 12, LOS 41.b,h)
NEW QUESTION: 2
A customer's Linux Oracle database requires a SAN solution with multiple FC connections for path resiliency and performance. The host has been provisioned with two dual-port FC HBAs, and each HBA is connected to each fabric.
Before configuring the storage, what host information should the storage administrator obtain from the customer? (Choose two.)
A. if the FC HBAs ports are all configured for an active/passive configuration.
B. if the DM-MP with ALUA support is configured on the host
C. the amount of cache memory installed in the host
D. the WWPNs of all of the FC ports in the host
Answer: C,D
NEW QUESTION: 3
利害関係者には相反する要件があり、製品の所有者はどのユーザーストーリーを書くかを決めるのに苦労しています。
製品所有者は何をすべきですか？
A. 対象分野の専門家（SME）にユーザーストーリーの作成を依頼します。
B. アジャイルチームにストーリー作成ワークショップを促進するよう依頼します。
C. アジャイルプラクティショナーにユーザーストーリーの作成を依頼してください。
D. アジャイルプラクティショナーに、ストーリー作成ワークショップを促進するよう依頼します。
Answer: C
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Feedbacks
Aalk - 2014-05-05 16:45:18
Plato - 2014-05-05 16:45:51
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Eleanore - 2014-09-28 16:36:48