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NEW QUESTION: 1
Rollins Corporation is constructing its MCC schedule. Its target capital structure is 20 percent debt, 20 percent preferred stock, and 60 percent common equity. Its bonds have a 12 percent 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). 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' retained earnings break point?
A. $1,400,000
B. $1,000,000
C. $800,000
D. $1,200,000
E. $600,000
Answer: B
Explanation:
Explanation/Reference:
Explanation:
Retained earnings = 0.6($1,000,000) = $600,000.
BP(RE) = $600,000/0.6 = $1,000,000.

NEW QUESTION: 2
Given the following code for the classes MyException and Test:

What is the result?
A. B
B. A compile time error occurs at line n1
C. EitherAorB
D. A
E. AB
Answer: D

NEW QUESTION: 3
In Outlook, which three Enterprise Vault Client buttons are valid? (Select three.)
A. Restore from Vault
B. Reply
C. Store in Vault
D. Search Vaults
E. Forward
Answer: A,B,E