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NEW QUESTION: 1
A bank normally does not have to deal with an issue related to
A. Intellectual property rights
B. Case of insolvency
C. Contractual rights of creditors
D. Payments and settlement system
Answer: A

NEW QUESTION: 2
True or False: The destination server for Security Gateway logs depends on a Security Management Server
configuration.
A. True, all Security Gateways forward logs automatically to the Security Management Server
B. True, all Security Gateways will only forward logs with a SmartCenter Server configuration
C. False, log servers are configured on the Log Server General Properties
D. False, log servers are enabled on the Security Gateway General Properties
Answer: B

NEW QUESTION: 3
Which of the following equations correctly illustrates the calculation of the cost of equity using the Discounted Cash Flow approach?
A. (1-tax rate)
B. Next annual dividend/current stock price
C. (Last annual dividend/[expected return - required return])
D. (Next annual dividend/current stock price) + expected growth rate
E. (Retention rate)*(ROE)
F. Risk-free rate of return + beta(expected return on the market - risk-free rate of return)
G. Last annual dividend/(1 + required rate of return)
H. expected growth rate
Answer: D
Explanation:
Explanation/Reference:
Explanation:
The Dividend-Yield-plus-Growth-Rate approach calls for the following components: next annual dividend, current stock price, and expected growth rate. This approach, also known as the Discounted Cash Flow (DCF) method, is a flexible and very adept tool in the hands of the financial analyst, and is it is imperative that the CFA candidate fully understand both the applications and the methodology of this approach. The fourth choice illustrates the Capital Asset Pricing Model, while the fifth represents an approach for calculating sustainable growth rate. The remaining answers are somewhat fictitious.