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NEW QUESTION: 1
General Investments is considering the purchase of a significant stake in Pacific Computer Components (PCC). Although PCC has stable production output, the company is located in a developing country with an uncertain economic environment. Since the monetary environment is particularly worrisome. General has decided to approach the valuation of PCC from a free cash flow model using real growth rates. In real rate analysis, General uses a modified build-up method for calculating the required real return, specifically:
required real return = country real rate + industry adjustment +
company adjustment
Elias Sando, CFA, an analyst with General, estimates the following information for PCC:
Domestic inflation rate = 8.738%
Nominal growth rate = 12.000%
Real country return = 3.000%
Industry adjustmen = 3.000%
Company adjustment = 2.000%
Additionally, Exhibit 1 reports information from PCC's financial statements for the year just ended (stated in LC).
PCC generally maintains relatively constant proportions of equity and debt financing and is expected to do so going forward.
Sando has gathered information on earnings before interest, taxes, depreciation, and amortization (EBITDA) and is contemplating its direct use in another cash flow approach aimed at valuing PCC.
Consider the following two statements regarding EBITDA:
Statement 1: EBITDA is not a good proxy for free cash flow to the firm (FCFF) because it does not incorporate the importance of the depreciation tax shield nor does it reflect the investment in working capital or in fixed capital.
Statement 2: EBITDA is also a poor proxy for FCFE.
Under the assumption that PCC maintains relatively constant proportions of equity and debt financing, the most appropriate valuation model is the:
A. FCFE approach.
B. residual income approach.
C. FCFF approach.
Answer: A
Explanation:
Explanation/Reference:
Explanation:
Since the company's capital structure is reasonably stable and FCFE is positive, FCFE is a simpler approach to valuation than FCFF, EVA, or residual income, and is preferred in this case. (Study Session
11, LOS 41 .b and Study Session 12, 41.b)
NEW QUESTION: 2
A. Option C
B. Option A
C. Option D
D. Option B
Answer: A
Explanation:
As a practical example, a user could initiate an Orchestrator runbook by requesting a service in a self- service portal. The runbook would then await approval by IT. Once approved, it would then automatically provision the necessary virtual machines through System Center Virtual Machine Manager, deploy the required software via Configuration Manager, arrange backup through System Center Data Protection Manager and integrate monitoring with a third-party system.
Reference: Microsoft System Center Orchestrator 2012: Lead the System Center Band
NEW QUESTION: 3
Based on the configuration for the client's certificate private key as shown which statements accurately describe the settings'? (Select two.)
A. More bits in the private key will reduce security, hence smallest private key size is used.
B. The private key is stored in the ClearPass server.
C. The private key for TLS client certificates is not created.
D. More bits in the private key will increase the processing time, hence smallest private key size is used.
E. The private key is stored in the user device.
Answer: D,E
NEW QUESTION: 4
What are the 4 status texts about authorizations maintenance?
A. Maintained
B. Double
C. Changed
D. Standard
E. Manual
Answer: A,C,D,E