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NEW QUESTION: 1





Answer:
Explanation:
Review the explanation part for exact settings.
Explanation
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NEW QUESTION: 2

data temp;
array points{2,3} (10,15,20,25,30,35);
run;

A. Option D
B. Option A
C. Option C
D. Option B
Answer: C

NEW QUESTION: 3
What are two reasons for configuring more than one VLAN on a switch? (Choose two.)
A. A group of clients requires that security be applied to traffic entering or exiting the group's devices
B. A group of clients requires that the group's devices receive less broadcast traffic than they are currently receiving
C. A group of devices are connected to the same Layer 3 network.
D. A group of devices must forward traffic across a WAN.
Answer: A,B

NEW QUESTION: 4
Intelligent Semiconductor is considering issuing additional common stock. The current yield to maturity on the firm's outstanding senior long-term debt is 13%. The company's combined federal/state income tax is
35%. The risk-free rate of return is 5.6%, and the annual return on the broadest market index is expected to be 13.5%. Shares of Intelligent Semiconductor have a historical beta of 1.6. In the past, the firm has assumed a 265 basis point risk premium when calculating the cost of equity. What is the cost of equity for this proposed common stock issue using the Bond-Yield-plus-Risk-Premium approach?
A. 15.65%
B. 11.20%
C. 16.15%
D. The cost of equity using the Bond-Yield-plus-Risk-Premium approach cannot be calculated from the information provided.
E. 18.24%
Answer: A
Explanation:
Explanation/Reference:
Explanation:
The cost of issuing common stock can be calculated using several methods, including the Bond-Yield- Plus-Risk-Premium approach, Discounted Cash Flow method, or by using the Capital Asset Pricing Model.
In this example, you have been asked to calculate the cost of equity using the Bond-Yield-plus- Risk- Premium approach. This method is a rather ad hoc procedure used by finance professionals, and involves adding a subjective "risk premium" to the yield to maturity of the firm's outstanding debt. This approach should be used with a degree of caution, as the subjective nature of the procedure leaves significant room for variation in estimates. In using the Bond-Yield-Plus-Risk-Premium approach, a subjective risk premium is added to the yield to maturity of the firm's outstanding long-term debt, and the calculation of the correct answer in this case is as follows: {yield to maturity of the outstanding senior debt 13% + subjective risk premium 2.65%}=15.65%.