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NEW QUESTION: 1
The management of Clay Industries have adhered to the following capital structure: 50% debt, 35% common equity, and 15% perpetual preferred equity. The following information applies to the firm:
Before-tax cost of debt, i.e. yield to maturity of the outstanding senior long-term debt = 9.5% Combined State/Federal tax rate = 35% Cost of common equity = 14.45%
Annual preferred dividend = $2.75
Preferred stock net offering price = $28.50
Given this information, what is the Weighted Average Cost of Capital for Clay Industries?
A. The WACC for Clay Industries cannot be calculated from the information given.
B. 9.60%
C. 10.45%
D. 6.52%
E. 8.67%
F. 11.27%
Answer: B
Explanation:
Explanation/Reference:
Explanation:
The calculation of the Weighted Average Cost of Capital is as follows: {fraction of debt * [yield to maturity of outstanding long-term debt][1-combined state/federal income tax rate]} + {fraction of preferred stock *
[annual dividend/net offering price]} + {fraction of common stock * cost of equity}. The cost of common equity can be calculated using three methods, the Capital Asset Pricing Model (CAPM), the Dividend- Yield-plus-Growth-Rate (or Discounted Cash Flow) approach, and the Bond- Yield-plus-Risk-Premium approach. In this example, the cost of equity is given, so none of the three approaches is necessary.
However, the cost of debt and preferred stock must be calculated. The cost of debt is found by multiplying the before tax cost of debt (9.5%) by (1-tax rate). Incorporating the given figures into this equation will yield a cost of debt at 6.175%. Determining the cost of perpetual preferred stock is relatively straightforward, simply divide the annual preferred dividend ($2.75) by the net price of preferred stock ($28.50), which yields a cost of preferred stock of 9.65%. These figures can now be incorporated into the WACC equation, which is provided below: {[50% debt * 9.5% * (1- 35%)] + [15% * ($2.75/$28.50)] + [35% * 14.45%]}
9.60%
NEW QUESTION: 2
Answer:
Explanation:
Explanation
Step 1:
To debug a cloud service from a remote machine, you must enable that functionality explicitly when you deploy your cloud service so that required services (msvsmon.exe, for example) are installed on the virtual machines that run your role instances.
You can choose the Release configuration.
Step 2:
If you didn't enable remote debugging when you published the service, you have to republish the service with remote debugging enabled.
Step 3:
If you debug a role, the Visual Studio debugger attaches to each instance of that role.
References:
NEW QUESTION: 3
OceanStor V3 does not start up normally within 15 minutes after the system is powered on. What engineers can use to log in to the storage system in order to locate this fault? (Multiple choice.)
A. Through the dev status view device management started
B. Through dev status view device management started
C. Sys status view system status
D. Through the dev status view system status
Answer: A,C