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NEW QUESTION: 1
Object-Oriented Database (OODB) systems:
A. Are ideally suited for text-only information.
B. Consume minimal system resources.
C. Require minimal learning time for programmers.
D. Are useful in storing and manipulating complex data, such as images
and graphics.
Answer: D
Explanation:
The correct answer is "Are useful in storing and manipulating complex data, such as images and graphics". The other answers are false, because for answer "Are ideally suited for text-only information" relational databases are ideally suited to text-only information,
"Require minimal learning time for programmers" and "Consume minimal system resources". OODB systems have a steep learning curve and consume a large amount of system resources.
NEW QUESTION: 2
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. 11.37%
C. 10.92%
D. 11.5%
Answer: B
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: 3
Inferential Statistics is largely about Significance. There are both Practical and _______________ Significance to consider during an analysis of data in a Lean Six Sigma project.
A. Problematic
B. Statistical
C. Impractical
D. Usable
Answer: B
Explanation:
Explanation/Reference:
Explanation:
NEW QUESTION: 4
In Oracle Sales cloud, a Sales Cloud object can have a maximum of how many fields?
A. 0
B. 1
C. 2
D. 3
Answer: A
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