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NEW QUESTION: 1
Which of the following statements are correct regarding intra-area route calculation of OSPF?(Select 2 Answers)
A. Every OSPF uses more than one Router LSA to describe local active link state for one area.
B. One Router LSA describes more than one link.
C. One Router LSA only describes one link.
D. Every OSPF router only uses one Router LSA to describe local active link state for one area.
Answer: B,D
NEW QUESTION: 2
L2TP is a tunneling protocol set up for transparent transmission of PPP packets between users and enterprise servers. Which of the following features are included?
A. supports encryption of packets.
B. L2TP protocol uses the TCP protocol
C. and PPP configurations support authentication and work with Radius to support flexible local and remote AAA After combining with IPSec,
D. supports private address allocation and does not occupy public IP addresses.
Answer: A,C,D
NEW QUESTION: 3
A firm's capital structure consists of 25% debt with a pre-tax cost of 7% and an after-tax cost of 4.9%.
Common equity makes up 45% of the structure and the rest is made up of preferred equity. Thepreferred stock has a coupon of 8% and is currently trading at 84% of its par value. The required rate of return on the common stock is 16.2%. The firm's WACC is ________.
A. 11.90%
B. 11.5%
C. 11.37%
D. 10.92%
Answer: C
Explanation:
Explanation/Reference:
Explanation:
To get the WACC in this case, you need to have information on the cost of preferred stock. This is not necessarily equal to the coupon rate on the preferred equity. Rather, it is the discount rate, R, that equates the present value of the perpetual payments on the preferred equity to its current price. The price of a perpetuity that pays C per year, at a discount rate of R, equals C/R. In this problem, since the preferred stock is at 84% and pays 8% coupon, we have 84% = 8%/R, giving R = 9.52%. Now, the interest payments on debt are tax-deductible but those on preferred equity are not. Hence, no tax adjustment is necessary for preferred stock but you must use after-tax cost of debt in WACC calculations. With this in mind, WACC
0.25*4.9% + 0.45*16.2% + 0.3*9.52% = 11.37%.
NEW QUESTION: 4
How many bar shapes can appear in a well-defined activity diagram?
A. any number
B. an even number
C. exactly two
D. an add number
Answer: A