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NEW QUESTION: 1
Yummy Doughnuts (YD) sells a variety of doughnuts and other related items through both company-owned locations and franchise locations. YD has experienced significant growth over the past five years.
However, barriers to entry are low and competition is increasing.
Linda Haas, CFA, follows YD for Gibraltar Capital. Gibraltar Capital prides itself on its thorough fundamental analysis of investment opportunities. The company uses a bottom-up approach to the investment process. Haas's security selection process utilizes residual income models to determine a stock's intrinsic value. Haas obtains YD's 2008 financial statements shown in Exhibit 1. In addition, Haas provides supporting information about YD's financials and other related material found in Exhibit 2.
Haas makes the following statements during her YD presentation to the investment committee.
Statement 1: Based on ROE mean reversion, YD's continuing residual income is assumed to decline to zero over time.
Statement 2: The residual income model states that if YD's ROE equals its equity cost of capital, then YD's intrinsic value will equal its book value per share.
Based on Exhibits 1 and 2, YD's weighted average cost of capital (WACC) is closest to:
A. 12%.
B. 13%.
C. 11%.
Answer: B
Explanation:
Explanation/Reference:
Explanation:
Note: Capitalizing R&D expense will increase YDs book value. However, the market value used in calculating YD s WACC is not impacted.
(Study Sessions 7 and 10, LOS 26.a and 35.h)
NEW QUESTION: 2
Which customer scenario provides the best opportunity for an Aruba mobile-first campus solution?
A. Customer is implementing a teleworker policy for 25% of its workforce.
B. Customer is connecting its network to a recently acquired company.
C. Customer is performing a hardware refresh in a data center.
D. Customer is building a new regional headquarter facility.
Answer: D
Explanation:
Reference https://h20195.www2.hpe.com/V2/getpdf.aspx/4AA6-3176ENW.pdf?ver=7.1
NEW QUESTION: 3
Which three different attributes can be used to identify the user in a SAML 65> assertion when Salesforce is acting as a Service Provider? Choose 3 answers
A. Salesforce Username
B. User Email Address
C. Salesforce User ID
D. User Full Name
E. Federation ID
Answer: B,D,E