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NEW QUESTION: 1
Bouchard Company's stock sells for $20 per share, its last dividend was $1.00. Its growth rate is a constant 6 percent, and the company would incur a flotation cost of 20 percent if it sold new common stock. Retained earnings for the coming year are expected to be $1,000,000, and the amount of common equity in the capital structure is 60 percent. If Bouchard has a capital budget of $2,000,000, what component cost of common equity will be built into the WACC for the last dollar of capital the company raises?
A. 11.45%
B. 11.80%
C. 12.15%
D. 11.30%
E. 12.63%
Answer: E
Explanation:
Explanation/Reference:
Explanation:
BP(RE) = RE/Equity fraction = $1,000,000/0.6 = $1,666,667.
Since the capital budget will be $2 million, and since all equity in the WACC (Weighted Average Cost of Capital) beyond $1,666,667 will be external equity, the WACC of the last dollar raised will include equity at a cost of k(e) (component cost of external equity obtained by issuing new common stock as opposed to retaining earnings):
k(e) = $1(1.06)/$20(1 - 0.2) + 0.06 = 0.0663 + 0.06 = 0.1263 = 12.63%.
NEW QUESTION: 2
When an engineer moves a directional antenna far away from another one, signal strength degrades, and then increases. Why does the signal strength increase?
A. Sideband
B. Signal reflection
C. Sidelobe
D. Harmonic signal
Answer: C
NEW QUESTION: 3
What is the preferred method for an IPv6 transition?
A. tunneling
B. dual stack
C. partial overlay
D. triple stack
Answer: B
NEW QUESTION: 4
You have a sharepoint server 2010 SP1 server farm.
You have a web application that has the URL http://Webapp1.contoso.com.
You need to change the URL of the web application to http://Webapp1.tailspintoys.com.
What should you do?
A. From the command prompt, run stsadm.exe and specify the renameserver operation. From Internet Information Services (IIS) Manager, change the host header of the Web application.
B. From the Sharepoint 2010 management shell, run the rename-spserver cmdlet. From Internet Information Services (IIS) Manager, change the IP address of the web application.
C. From Central Administration, configure the alternate access mappings. From Internet Information Services (IIS) Manager, change the host header of the web application.
D. From the Sharepoint 2010 management shell, run the Rename-ItemProperty cmdlet. From the command prompt, run the appcmd.exe command-line tool to modify the site bindings of the web application.
Answer: C
Explanation:
Rename-ItemProperty The Rename-ItemProperty cmdlet changes the name of a specified item property. The value of the property is not changed. For example, you can use Rename-ItemProperty to change the name of a registry entry. Rename-SPServer The Rename-SPServer cmdlet changes the name of the server for internal use within SharePoint 2010 Products. The server itself must be manually renamed. http://technet.microsoft.com/en-us/library/cc263117(v=office.12).aspx Renameserver: Stsadm operation Changes the name of the specified server in the configuration database. This operation is used before or after a server is renamed in the domain to avoid having to rebuild the server or farm. http://technet.microsoft.com/en-us/library/cc263117(v=office.12).aspx Alternate access mappings Alternate access mappings enable a Web application that receives a request for an internal URL, in one of the five authentication zones, to return pages that contain links to the public URL for the zone. You can associate a Web application with a collection of mappings between internal and public URLs http://technet.microsoft.com/en-us/library/cc261814(v=office.12).aspx
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