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NEW QUESTION: 1
When a business object (BO) is published, how can one tell that the publish process has been completed?
A. A notification has been sent to the user that triggered the publish process.
B. A pop-up message appears to confirm the BO publication.
C. All forms for this BO are automatically published with this BO.
D. The revised property is not grayed out in the Data Modeler.
Answer: A
NEW QUESTION: 2
Initially, back-office operation were created as captives of parent companies and treated as cost centers from cost centers to profit centers due to:
A. The emergence of third-party back-office facilities making it possible for corporation to avail of their services
B. Both A&B
C. Corporation are increasingly converting captive back-office operations into profit centers by accepting external clients
D. Stagnant position of service activities being outsourced.
Answer: B
NEW QUESTION: 3
A firm issues debt to repurchase equity and at the same time, experiences an increase in its profit margin.
All else equal, using the Dividend Discount Model, its stock price ________.
A. increases
B. decreases
C. insufficient information given
D. is not affected
Answer: A
Explanation:
Explanation/Reference:
Explanation:
Intuitively, it should be clear that the stock price rises since the profit margin has gone up and at the same time, the percentage of equity holders has gone down. To see this mathematically, note that the duPont system gives ROE = Profit margin * Total Asset Turnover * Financial Leverage. In the present case, the ROE increases since profit margin and Financial Leverage have both increased. The dividend growth rate, g, equals ROE*(1 - payout ratio). Hence, as ROE increases, the dividend growth rate increases with a constant payout ratio. In the Dividend Discount Model, the stock price increases as the dividend growth rate increases, all else equal.