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NEW QUESTION: 1
Rollins Corporation is constructing its MCC (marginal cost of capital) schedule. Its target capital structure is
20 percent debt, 20 percent preferred stock, and 60 percent common equity. Its bonds have a 12percent coupon, paid semiannually, a current maturity of 20 years, and sell for $1,000. The firm could sell, at par,
$100 preferred stock, which pays a 12 percent annual dividend, but flotation costs of 5 percent would be incurred. Rollins' beta is 1.2, the risk-free rate is 10 percent, and the market risk premium is 5 percent.
Rollins is a constant growth firm, which just paid a dividend of $2.00, sells for $27.00 per share, and has a growth rate of 8 percent. The firm's policy is to use a risk premium of 4 percentage points when using the bond-yield-plus-risk-premium method to find k(s) (component cost of retained earnings). The firm's net income is expected to be $1 million, and its dividend payout ratio is 40 percent. Flotation costs on new common stock total 10 percent, and the firm's marginal tax rate is 40 percent. What is Rollins' cost of retained earnings using the CAPM (Capital Asset Pricing Model) approach?
A. 16.0%
B. 14.1%
C. 16.9%
D. 16.6%
E. 13.6%
Answer: A
Explanation:
Explanation/Reference:
Explanation:
Cost of retained earnings (CAPM approach): k(s) (component cost of retained earnings) = 10% + 1.2(5%)
= 16.0%.
NEW QUESTION: 2
You are asked to create a method that accepts an array of integers and returns the highest value from that array.
Given the code fragment:
Which method signature do you use at line n1?
A. final int findMax (int [] )
B. public int findMax (int [] numbers)
C. static int[] findMax (int max)
D. static int findMax (int [] numbers)
Answer: B
NEW QUESTION: 3
Where does routing occur within the DoD TCP/IP reference model?
A. network
B. internet
C. transport
D. application
Answer: B
Explanation:
The picture below shows the comparison between TCP/IP model & OSI model. Notice that the Internet Layer of TCP/IP is equivalent to the Network Layer which is responsible for routing decision.
NEW QUESTION: 4
Siehe Ausstellung.
Ein Techniker hat die Aufgabe, die Netzwerkkonfigurationsparameter auf einer Client-Workstation zu überprüfen, um dem Teamleiter Bericht zu erstatten. Ziehen Sie die Knotenkennungen von links auf die Netzwerkparameter rechts.
Answer:
Explanation:
Explanation: