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  • Exam Number/Code : GB0-372-ENU
  • Exam Name : H3CSE-RS-SW
  • Questions and Answers : 260 Q&As
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NEW QUESTION: 1
Assume you are the director of capital budgeting for an all-equity firm. The firm's current cost of equity is
16 percent; the risk-free rate is 10 percent; and the market risk premium is 5 percent. You are considering a new project that has 50 percent more beta risk than your firm's assets currently have, i.e., its beta is 50 percent larger than the firm's existing beta. The expected return (IRR) on the new project is 18 percent.
Should the project be accepted if beta risk is the appropriate risk measure?
A. No; the project's risk-adjusted required return is 1 percentage point above its IRR.
B. Yes; its IRR is greater than the firm's cost of capital.
C. No; the project's risk-adjusted required return is 2 percentage points above its IRR.
D. Yes; the project's risk-adjusted required return is less than its IRR.
E. No; a 50 percent increase in beta risk gives a risk-adjusted required return of 24 percent.
Answer: A
Explanation:
Explanation/Reference:
Explanation:
Calculate the beta of the firm, and use to calculate project beta:
k(s) = 0.16 = 0.10 + (0.05)b. b = 1.2.
b(Project) = b(Firm)1.5 b(Project) is 50% greater than current b(Firm)
b(Project) = (1.2)1.5 = 1.8.
Calculate required return on project, k(Project), and compare to IRR.
Project: k(Project) = 0.10 + (0.05)1.8 = 0.19 = 19%. IRR = 0.18 = 18%.
Since the required return is one percentage point greater than the expected IRR, the firm should not accept the new project.

NEW QUESTION: 2
A company wants to allow employees to register and manage their own devices that do not support NSP. Which
portals enable this?
A. Client provisioning portals
B. BYOD Portals
C. My devices portals
D. MDM portals
Answer: C

NEW QUESTION: 3

A. Option B
B. Option D
C. Option A
D. Option C
Answer: C

 

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2025 GB0-372-ENU Valid Exam Registration, GB0-372-ENU Valid Exam Sims | H3CSE-RS-SW Latest Dumps - Cads-Group


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