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NEW QUESTION: 1
An analyst just received the following information for Mythical Interactions, Inc. A senior equity trader in her group wants to know if he should purchase a large block of the stock.
Based on the assumptions above, which of the following recommendations is CORRECT? The analyst should advise the trader to:
A. purchase the stock. It is undervalued by approximately $14.20.
B. not purchase the stock. It is overvalued by approximately $14.20.
C. purchase the stock. It is undervalued by approximately $8.00.
D. not purchase the stock. It is overvalued by approximately $10.00.
Answer: C
Explanation:
Explanation/Reference:
Explanation:
To determine whether the trader should purchase the stock, we need to determine if the stock is overvalued or undervalued. Given the information in this problem, we will use the price/earnings (P/E) ratio and the earnings per share (EPS) to calculate an estimated value.
The P/E ratio = Dividend Payout Ratio / (ke- g),
EPS = [(Per share Sales Estimate) * (EBITDA%) - D (per share) - I (per share)] * (1 - t)
= [($175 * 0.22) - $20 - $12] * (1 - 0.40) = $3.90
Value of stock = EPS * P/E = 13.725 * $3.90 = approximately$53.50
Conclusion:The trader should purchase a block of the stock. It is undervalued by the difference between the market price and the estimated value, $53.50 - $45.50, or approximately $8.00.

NEW QUESTION: 2
In a Dell EMC Unity environment, which design configuration will support synchronous replication?
A. NFS datastores on a UnityVSA system
B. NFS datastores on a Unity 450F system
C. Consistency Groups on a UnityVSA system
D. Consistency Groups on a Unity 450F system
Answer: D

NEW QUESTION: 3
Which of the following may cause Jane, the security administrator, to seek an ACL work around?
A. Tailgating
B. Zero day exploit
C. Virus outbreak
D. Dumpster diving
Answer: B