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NEW QUESTION: 1
Given that the beginning value on a stock is $640, expected earnings are $80, the retention rate of earnings is 40%, and the required rate of return is 21%, what is the minimum expected ending value of the stock that makes it a profitable investment?
A. Not enough information
B. $725.40
C. $726.40
D. $758.40
E. $742.40
Answer: C
Explanation:
Explanation/Reference:
Explanation:
The dividend payout ratio is equal to one minus the retention rate (1 - 0.4 = 0.6). Expected dividends are equal to the dividend payout ratio multiplied by expected earnings (0.6 x 80 = $48). In order for a stock to be a good investment, its rate of return should be equal or greater than the required rate of return.The minimum ending value that would make the stock investment in this question profitable is given by the equation (P2 + D) / P1 = 1 + k, where P2 is the ending value, P1 is the beginning value, D is the expected dividend, and k is the required rate return. Rearranging this yield P2 = ((k + 1) x P1) - D In this question, the minimum ending value is (1.21 x 640) - 48 = $726.40.

NEW QUESTION: 2
A medical device company is implementing a new COTS antivirus solution in its manufacturing plant. All validated machines and instruments must be retested for interoperability with the new software. Which of the following would BEST ensure the software and instruments are working as designed?
A. Static code analysis testing
B. Peer review
C. System design documentation
D. User acceptance testing
E. Change control documentation
Answer: D

NEW QUESTION: 3
Which two activities are excluded from the management console Network view? (Select two.)
A. View the overall status of each agent in the network
B. List all agents that are registered with the management server
C. List all agents that support detection or prevention features
D. Delete an agent's record from the management server database
E. Edit the policies and configurations that are applied to each agent
Answer: C,E