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NEW QUESTION: 1
Which of the following equations correctly illustrates the calculation of the Weighted Average Cost of Capital (WACC)?
A. {{Percentage of debt * [coupon on outstanding debt * (1 + combined state/federal tax rate)]} +
{percentage of preferred stock * [annual preferred dividend/(offering price - flotation costs)]} +
{percentage of common equity * cost of common equity}}
B. {{Percentage of debt* [yield to maturity of outstanding debt * (1 - combined state/federal tax rate)]} +
{percentage of preferred stock * [annual preferred dividend/(offering price - flotation costs)]} +
{percentage of common equity * cost of common equity}}
C. {{Percentage of debt* [coupon on outstanding debt * (1 - combined state/federal tax rate)]} +
{percentage of preferred stock * [annual preferred dividend/(required rate of return)]} + {percentage of common equity * cost of common equity}}
D. {Percentage of debt * [coupon on outstanding debt * (1 + combined state/federal tax rate)]} +
{percentage of preferred stock * [annual preferred dividend/(offering price + flotation costs)]} +
{percentage of common equity * cost of common equity}}
E. {Average cost of equity + average cost of debt + average cost of preferred stock}* subjective divisor
F. None of these answers
Answer: B
Explanation:
Explanation/Reference:
Explanation:
The Weighted Average Cost of Capital is a fundamentally important concept within the field of corporate finance, and the CFA candidate should have a complete understanding of both the mechanics of the WACC figure, as well as the relationships between its components. In calculating the cost of outstanding common equity, there exist three distinct methods, the Dividend-Yield-plus- Growth-Rate, or Discounted Cash Flow approach, the Capital Asset Pricing Model (CAPM), and the Bond-Yield-plus-Risk-Premium approach. It is important for the CFA candidate to have a complete understanding of each method, along with their weaknesses and advantages.
NEW QUESTION: 2
Activity A has a pessimistic (P) estimate of 36 days, a most likely (ML) estimate of 21 days, and an optimistic (O) estimate of 6 days. What is the probability that activity A will be completed in 16 to 26 days?
A. 95.46 percent
B. 68.26 percent
C. 99.73 percent
D. 55.70 percent
Answer: B
Explanation:
Explanation/Reference:
Explanation:
First, compute the standard deviation:
Next, compute PERT expected time:
Finally, determine range of outcomes using 1:
21-5 = 16 days, and 21+5 = 26 days
Simply defined, 1 is the amount on either side of the mean of a normal distribution that will contain approximately 68.26 percent of the population. Meredith and Mantel 2012, 348-350
NEW QUESTION: 3
You generate and send your client their Eloqua web tracking scripts. You get an email from the client's webmaster asking if anything else is needed to track activity on three other websites. What do you do?
A. Modify the code of the PutinHeadsection.html file to specify each website domain.
B. Nothing. The same web tracking scripts are used on each website.
C. Enable Strict Mode Tracking.
D. Generate a unique set of Eloqua tracking scripts for each website.
Answer: D
Explanation:
Reference:
https://docs.oracle.com/cloud/latest/marketingcs_gs/OMCAA/pdf/AsynchronousVisitorTrackingScri pts.pdf