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NEW QUESTION: 1
Grant Grocers is considering the following investment projects:
Project Size of Project IRR of Project
V 1.0 million12.0%
W 1.2 million11.5%
X 1.2 million11.0%
Y 1.2 million10.5%
Z 1.0 million10.0%
The company has a target capital structure, which is 50 percent debt and 50 percent equity. The after- tax cost of debt is 8 percent. The cost of retained earnings is estimated to be 13.5 percent. The cost of equity is estimated to be 14.5 percent if the company issues new common stock. The company's net income is
$2.5 million. If the company follows a residual dividend policy, what will be its payout ratio?
A. 54%
B. 32%
C. 12%
D. 100%
E. 66%
Answer: B
Explanation:
Explanation/Reference:
Explanation:
The company's WACC (provided no new equity is issued) is 8%(0.5) + 13.5%(0.5) = 10.75%. Comparing the WACC with the project IRRs reveals that the company will undertake projects V, W, and X Total financing costs for these projects is $3,400,000. Of this amount, 0.5($3,400,000) = $1,700,000 will be financed from retained earnings. Thus, $2,500,000 - $1,700,000 = $800,000 will be available for dividends.
The payout ratio is then $800,000/$2,500,000 = 32%.

NEW QUESTION: 2
Which port is typically used by SSL Network Extender, if the Connecter Portal will also be used on the same IP address?
A. SSL (TCP/900)
B. SSL (TCP/443)
C. SSL (TCP/80)
D. SSL (TCP/444)
Answer: D

NEW QUESTION: 3
A customer has two IP Replicated VNX systems: VNXA is the Primary system; VNXB is thedisaster recovery (DR)system. VNXA is configured with VDMs containing CIFS servers, has secmap cache disabled, and runs a primary Usermapper. VNXB is configured as a DR target system and runs a secondary Usermapper.
During failover testing, VNXA is failed over and shut down to simulate a site outage. The smallnumber of Linux users that access the CIFS data via NFS find that they no longer have the same permissions as when accessing from the primary site. Additionally, the UID ownership of many files has changed.
What could be the cause of the change in permissions?
A. LDAP requires re-configuration and resynchronization when failing over sites.
B. The ID mappings of the Primary and secondary Usermapper do not match.
C. DNS has not yet re-synchronized to reflect the new CIFS server addresses.
D. The DR site must be promoted to become a primary Usermapper on failover
Answer: B