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NEW QUESTION: 1
Byron Corporation's present capital structure, which is also its target capital structure, is 40 percent debt and 60 percent common equity. Next year's net income is projected to be $21,000, and Byron's payout ratio is 30 percent. The company's earnings and dividends are growing at a constant rate of 5 percent; the last dividend was $2.00; and the current equilibrium stock price is $21.88. Byron can raise all the debt financing it needs at 14 percent. If Byron issues new common stock, a 20 percent flotation cost will be incurred. The firm's marginal tax rate is 40 percent. Assume that at one point along the marginal cost of capital schedule the component cost of equity is 18 percent. What is the Weighted Average Cost of Capital (WACC) at that point?
A. 13.6%
B. 18.0%
C. 10.8%
D. 14.2%
E. 16.4%
Answer: D
Explanation:
Explanation/Reference:
Explanation:
MCC (Marginal Cost of Capital) = 0.4(0.14)(1 - 0.4) + 0.6(0.18) = 0.142 = 14.2%.
NEW QUESTION: 2
The Cisco network of a company has the following characteristics:
What happens within the network? (Select three.)
A. There is a disruption to network connectivity because EIGRP metrics and OSPF are very different and cannot produce the same path selection.
B. On routers on which the EIGRP distance is 220, OSPF redistributed networks are not visible in the IP routing table.
C. On routers on which the EIGRP distance is still at default values, only OSPF networks are visible in the IP routing table.
D. There is no disruption to network connectivity, although some routers using OSPF routes and some are using EIGRP routes because the network paths are the same.
E. On routers on which the EIGRP distance is still at default values, only EIGRP networks are still visible in the IP routing table.
F. There is a temporary disruption as the routers transitioning to OSPF routes calculate paths that work in this hybrid environment.
G. On routers on which the EIGRP distance is 220, OSPF networks replace EIGRP networks in the IP routing table.
Answer: D,E,G
NEW QUESTION: 3
What is HP Digital Sending Software?
A. Server-based digital sending functionality
B. Digital sending functionality that is embedded in an HP MFP or scanner
C. Cloud-based digital sending functionality
D. Digital sending functionality that includes TWAIN scanning
Answer: A
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