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NEW QUESTION: 1
A firm follows the simple growth model and can invest $1000 every year into new projects which have a rate of return of 17%. Each project generates a constant stream of earnings year after year. The firm's stock has a required rate of return of 13%. If the firm is founded today, the firm value equals ________.
A. $2,675
B. $2,440
C. $1,895
D. $3,165
Answer: A
Explanation:
Explanation/Reference:
Explanation:
You should be careful in solving such a problem.
Suppose the firm invests $1,000 today in a project. This first project generates a constant stream of perpetuity with an annual payment of $1,000 * 0.17 = $170. The present value of this stream is 170/0.13
$1,307.6. The NPV of the project is then $1,307.6 - $1,000 = $307.6. Since the firm does this every year, it has a perpetuity of $307.6 (the NPVs of projects 2 and on, at the time the projects are started).The present value of these NPVs is $307.6/0.13 = $2,367. Thus, the total value of the firm is $2,367 + $307.6 (first project) = $2,675.

NEW QUESTION: 2
Which of the following is an example of the principle of least privilege and is the MOST secure when granting access to a shared network drive used by the Accounting department?
A. Grant appropriate permissions to only users in the Accounting department for both the share and NTFS
B. Grant modify permissions to the Accounting department and deny NTFS permissions to all other users
C. Grant the Accounting department full control for the share and appropriate NTFS permissions
D. Grant all users full control permissions for the share only
Answer: A

NEW QUESTION: 3
Refer to the exhibit.

An administrator is testing a newly created Windows 2016 blueprint in Cloud Assembly. While using the Test option from within the blueprint, the attached error appears.
What is a possible cause for this error message?
A. The network profile created did not have the correct capability tag.
B. The administrator did not add a cloud account.
C. The administrator did not associate a cloud zone to the project.
D. During the machine allocation phase, Cloud Assembly could not find enough resources.
Answer: A