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NEW QUESTION: 1
FLPs (Family limited partnership) may help an owner maintain:
A. All of these
B. May avoid fractionalization of title
C. May protects assets from creditors
D. Control of assets
Answer: A
NEW QUESTION: 2
A firm's capital structure has a debt-to-equity ratio of 1.2. The pretax cost of debt is 6.8% and the weighted average cost of capital of the firm equals 9.8%. The risk-free rate in the economy is 6.2% the expected rate of return on the market is 14%. The firm must pay 35% of its gross income in taxes. The beta of the stock equals ________.
A. 1.02
B. 0.91
C. 1.64
D. 1.3
Answer: D
Explanation:
Explanation/Reference:
Explanation:
Since the debt interest is tax deductible, the after-tax cost of debt equals 6.8%*(1-0.35) = 4.42%. Since the D/E ratio = 1.2, (D+E)/E = 2.2, giving E/(D+E) = 0.455. Thus, equity forms 45.5% of the capital whiledebt forms 54.5%. The WACC is then equal to 0.455*RE + 0.545*4.42% = 9.8% (given). Solving gives RE
16.24%. If B is the beta of the stock, then using CAPM, 16.24% = 6.2% + B*(14% - 6.2%), giving B = 1.29.
NEW QUESTION: 3
Which statement is true regarding the port channel 100 and 101 configurations between the Nexus 7010 switches?
A. N7010-C1 is not allowing any active VLAN traffic to pass on Po100 and Po101.
B. The vPC peer-keepalive is down between the two Nexus 7000 switches.
C. The vPC assignments on N7010-C2 are incorrectly swapped
D. LACP is not configured to initiate negotiations.
Answer: C
Explanation:
The vPC assignments on N7010-C2 are incorrectly swapped.
The "show vpc" command will show you that the keepalives are active, and that there are
active VLANs.The "show port-channel summary" command shows that LACP is enabled.