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NEW QUESTION: 1
A firm has to pay 1.5% fee to underwriters when it issues new equity. The firm has a dividend payout ratio of 37% and a return on equity of 13.9%. The firm has just announced earnings of $3.27 per share. If the stock's cost of external equity is 14.9%, how much capital would the firm raise by issuing 6 million shares?
A. none of these answers
B. $130.55 million
C. $111.12 million
D. $98.33 million
Answer: B
Explanation:
Explanation/Reference:
Explanation:
IF F is the percentage flotation cost and P is the amount of new equity raised per new share, then P = D1/[(Ke - g)(1-F)], where Ke is the cost of external equity and D1 is next year's expected dividend.
Also, g = ROE*retention ratio = ROE*(1-payout ratio) = 13.9%*(1-37%) = 8.76%. D1 = 3.27*0.37*(1
+8.76%) = $1.316. Therefore, P = 1.316/[(1-1.5%)*(14.9% - 8.76%) = $21.76. By issuing 6 million shares, the firm will therefore raise 6*21.74 = $130.55 million.
NEW QUESTION: 2
Scenario: A Citrix Administrator has been receiving calls from users stating that they are receiving new sessions instead of reconnecting to their disconnected sessions. The administrator investigated the issue and found the sessions are in a disconnected state when the users leave work.
What should the administrator configure in StoreFront to allow the users to reconnect to their disconnected sessions while roaming?
A. Session Lingering
B. Workspace Control
C. Session Timeout
D. Session Pre-Launch
Answer: B
NEW QUESTION: 3
A member of a limited liability company may generally do all of the following, except:
A. Have limited liability.
B. Transfer his membership in the company without the consent of the other members.
C. Participate in the management of the company absent an agreement to the contrary.
D. Order office supplies for the company.
Answer: B
Explanation:
Choice "a" is correct. The transfer of a member interest requires the consent of the other members.
Members may not assign their interest without the other members' consent. Choice "b" is incorrect.
Unless the members have agreed to operate as a manager managed limited liability company, all
members have the power to participate in management. Choice "c" is incorrect. Members in a limited
liability company all have limited personal liability. Choice "d" is incorrect. Unless otherwise agreed,
members have the right to manage the every day operations of a limited liability company. This can
include the ordering of office supplies.
NEW QUESTION: 4
You have the following HTML markup.
For all of the fields that have names ending with the letter x, you need to set the value to value1.
Which code line should you use?
A. Option B
B. Option D
C. Option A
D. Option C
Answer: D
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