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NEW QUESTION: 1
Jackson Corporation is evaluating the following four independent, investment opportunities:
Project CostRate of Return
A$300,000 14%
B$150,000 10
C$200,000 13
D$400,000 11
Jackson's target capital structure is 60 percent debt and 40 percent equity. The yield to maturity on the company's debt is 10 percent. Jackson will incur flotation costs for a new equity issuance of 12 percent.
The growth rate is a constant 6 percent. The stock price is currently $35 per share for each of the 10,000 shares outstanding. Jackson expects to earn net income of $100,000 this coming year and the dividend payout ratio will be 50 percent. If the company's tax rate is 30 percent, then which of the projects will be accepted?
A. Projects A and C.
B. None of the investment projects will be taken.
C. All of the investment projects will be taken.
D. Project A.
E. Projects A, C, and D.
Answer: D
Explanation:
Explanation/Reference:
Explanation:
Calculate the after-tax component cost of debt as 10%(1 - 0.3) = 7%. If the company has earnings of
$100,000 and pays out 50% or $50,000 in dividends, then it will retain earnings of $50,000. The retained earnings breakpoint is $50,000/0.4 = $125,000. Since it will require financing in excess of $125,000 to undertake any of the alternatives, we can conclude the firm must issue new equity. Therefore, the pertinent component cost of equity is the cost of new equity. Calculate the expected dividend per share as
$50,000/10,000 = $5. Thus, the cost of new equity is $5/[($35(1 - 0.12)] + 6% = 22.23%. Jackson's WACC is 7%(0.6) + 22.23%(0.4) = 13.09%. Only the return on Project A exceeds the WACC, so only Project A will be undertaken.

NEW QUESTION: 2
あなたはDynamics 365 for Customer Service開発者です。 SandboxインスタンスからProductionインスタンスにエクスポートされたソリューションをインポートします。
インポート中にエラーが表示されます
エラーを特定して解決する必要があります。
あなたは何をするべきか？
A. ログファイルをダウンロードし、ログファイルでエラーを確認します。エラーの原因を修正し、ソリューションを再インポートします。
B. solution.zipファイルを開いてsolution.xmlファイルを読み取り、インポートエラーの原因となっているファイル内の行を削除します。
C. サーバー上でトレースを有効にするサービス要求を入れます。
D. ソリューションをSandboxインスタンスからエクスポートし、ソリューションを実稼働インスタンスに再インポートします。
Answer: A

NEW QUESTION: 3
Which of the following is a process that identifies critical information to determine if friendly actions can be observed by adversary intelligence systems?
A. OPSEC
B. HIDS
C. IDS
D. NIDS
Answer: A