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NEW QUESTION: 1
Flavortech Inc. expects EBIT of $2,000,000 for the coming year. The firm's capital structure consists of 40 percent debt and 60 percent equity, and its marginal tax rate is 40 percent. The cost of equity is 14 percent, and the company pays a 10 percent rate on its $5,000,000 of long-term debt. One million shares of common stock are outstanding. In its next capital budgeting cycle, the firm expects to fund one large positive NPV project costing $1,200,000, and it will fund this project in accordance with its target capital structure. If the firm follows a residual dividend policy and has no other projects, what is its expected dividend payout ratio?
A. 40%
B. 0%
C. 20%
D. 60%
E. 100%
Answer: C
Explanation:
Explanation/Reference:
Explanation:
EBIT$2,000,000
- I500,000 ($5,000,000 debt x 10% coupon)
EBT1,500,000
- Taxes600,000 ($1,500,000 EBT x 40% tax rate)
NI900,000
Project funding $1,200,000 project funded:
Residual earnings 0.60 equity = $720,000
0.40 debt = $480,000
Payable as dividends: 900,000 - 720,000 = $180,000
Dividend payout ratio = $180,000/$900,000 = 20%.

NEW QUESTION: 2
Welche der folgenden Aussagen würden Sie am wenigsten als Teil der Analyse der anfänglichen Werkzeugkosten erwarten? 1 Kredit
A. Bewertung geeigneter Werkzeuge
B. Lernzeit für die Verwendung des neuen Tools
C. Integration mit anderen Tools
D. Werkzeugportabilität
Answer: D
Explanation:
Topic 4, Scenario 4, V2 "Test Management Tool"
The project situation after 11 months is:
-
The first increment was released one week late but contained sufficient functionality to be declared fit for purpose'. However, there were 20 outstanding incidents deferred to increment two.
-
The amount of voluntary overtime worked PV the test team has reduced the second Increment slippage to just 3 weeks.
-There is talk of reducing the scope of requirements. The purpose of this is to first deliver the application with support for manual testing and then to provide a delivery * weeks later to resolve any remaining points and provide support for automated testing (i.e. the link to the capture-replay tool).
-Concerns have been expressed by a section of the user community, that in some places the usability is very poor.

NEW QUESTION: 3
When deciding on the network bandwidth needed to connect front ends to an SAP system (using a WAN connection), you should consider which of the following?
There are 3 correct answers to this question.
A. It might be useful to switch on the "Low speed connection" flag for the remote connections.
B. The volume of "non-SAP-related" traffic (for example, office documents) using the same connection.
C. The number of users connecting using this line.
D. Using SAP's advanced online data compression technology (SAP ODCT) to minimize the network load.
The software needed for this feature is sold separately.
Answer: A,B,C