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NEW QUESTION: 1
Company Background Corporate Information
Proseware, Inc. manufactures medical equipment.
Physical Locations
Proseware has an office in Chicago. The Chicago office has 150 employees.
Existing Environment Existing Licensing Solution
Proseware purchases Microsoft software licenses under OEM agreements and Open License agreements.
Existing IT Environment
Each employee has a dedicated desktop. The desktops run different run different versions of Microsoft
Windows and different versions of Microsoft Office.Business Requirements
Planned Changes
The company plans to implement Windows SharePoint Services.
During the next two years, the company plans to standardize the operating system versions to Windows XP
Professional. There are no plans to upgrade to Windows Vista during this time period.
Proseware has determined that retaining new version rights for server products is not necessary.
During the next three years, Proseware plans to make the following changes:
Replace all desktops
Upgrade e-mail services to Exchange Server 2007
Upgrade all servers to the current version of Windows Server.
Problem Statements
The company's software purchases are unplanned and improperly documented.
Business Goals
Proseware has the following business goals: Own software licenses perpetually Standardize on the current version of desktop applications Reduce the upfront cost of upgrading desktop applications Allow flexibility to purchase new versions of server licenses, with or without Software Assurance Provide all employees access to Unifed Messaging in Exchange Server 2007 Have easy access to verifiable license documentation
Question
Proseware plans to merge with a company named Contoso,Inc. Contoso is located in London. Contoso has
500 desktops.
After that merger, which Volume Licensing program allows Proseware to meet its business goals for
desktop applications?
A. Open License
B. Select License
C. Enterprise Agreement
D. Select Plus
Answer: C

NEW QUESTION: 2
Which of the following would BEST facilitate the successful implementation of an [T-related framework?
A. Involving appropriate business representation within the framework
B. Establishing committees to support and oversee framework activities
C. Aligning the framework to industry best practices
D. Documenting IT-related policies and procedures
Answer: A

NEW QUESTION: 3
If the spread between the required rate of return and the anticipated dividend growth rate were to decrease significantly and suddenly while the remaining components of the P/E ratio were to remain unchanged, which of the following would likely occur? Further, a decrease in the retention rate would lead to what effect on the earnings multiplier, holding both k and g constant?
A. The earnings multiplier would decrease; the earnings multiplier would decrease.
B. The earnings multiplier would decrease; the earnings multiplier would increase.
C. The earnings multiplier would increase; the earnings multiplier would decrease.
D. The earnings multiplier would increase; the earnings multiplier would increase.
E. The earnings multiplier would increase; the earnings multiplier would either increase or decrease depending on the firm's ROE compared to its cost of capital.
Answer: D
Explanation:
Explanation/Reference:
Explanation:
Remember that the equation used to determine the appropriate earnings multiplier for a stock market series is the following:
{P/E = [D/E / (k - g)]}
Where: P/E = the earnings multiplier, or Price-to-Earnings ratio, D/E = the dividend payout ratio at t1, k = the required rate of return, and g = the anticipated growth rate of dividends.
As the spread between k and g narrows, the earnings multiplier figure will increase. Indeed, the earnings multiplier is very sensitive to changes in the spread between k and g, and this is the primary reason for the greater relative volatility of the P/E ratio versus the EPS figure for a stock market series.
A decrease in the retention rate will lead to an increase in the earnings multiplier figure, holding everything else equal. Remember that the retention rate is simply (1 - dividend payout ratio). So, a decline in the retention rate is analogous to an increase in the dividend payout ratio. An increase in the dividend payout ratio, holding everything else equal, will lead to an increase in the earnings multiplier figure.