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NEW QUESTION: 1
The number of the maximum connectable PLC STA of each of the Huawei PLC CCO modules are ().
A. 0
B. 1
C. 2
D. 3
Answer: A

NEW QUESTION: 2
Consider the following information for Magical Interactions, Inc.
Based on the assumptions above, which of the following statements is TRUE?
A. The stock is undervalued.
B. If management can increase the EBITDA ratio by only 1.0%, the stock will be properly priced (all else equal).
C. If the earnings retention rate increases, the value of the stock will increase (all else equal).
D. If inflation expectations decrease, the value of the stock will increase (all else equal).
Answer: D
Explanation:
Explanation/Reference:
Explanation:
The expected inflation rate is a component of ke (through the nominal risk free rate). ke is one component of the P/E ratio and can be represented by the following: nominal risk free rate + stock risk premium, where nominal risk free rate = [(1 + real risk free rate) * (1 + expected inflation rate)] - 1.
The other statements are false. To determine the stock over/under valuation, we need to calculate both the P/E ratio and the EPS.
The P/E ratio = Dividend Payout Ratio / (ke- g),
EPS = [(Per share Sales Estimate) * (EBITDA%) - D (per share) - I (per share)] * (1 - t)
= [($150 * 0.18) - $15 - $10] * (1 - 0.35) = $1.30
Value of stock = EPS * P/E = 7.14 * $1.30 =$9.30
Since the market value of the stock is greater than the estimated value, the stock is overvalued.
An increase in earnings retention will likely decrease the P/E ratio. The logic is as follows: Because earnings retention impacts both the numerator (dividend payout) and denominator (g) of the P/E ratio, the impact of a change in earnings retention depends upon the relationship of ke and ROE. If the company is earning a lower rate on new projects than the rate required by the market (ROE < ke), investors will likely prefer that the company pay dividends (absent tax concerns). Investors will likely value the company lower if it retains a higher percentage of earnings.
If management increases EBITDA by 1.0%,the stock will be undervalued.
EPS = [($150 * 0.19) - $15 - $10] * (1 - 0.35) = $2.28
Value of stock = EPS * P/E = 7.14 * $2.28 = approximately$16.30, which is greater than the market value.
Note: the EBITDA % that equates to the market price is approximately 18.5%, or a 0.5% increase. Small changes in EBITDA% have a large impact on the EPS and thus on the estimated stock value.

NEW QUESTION: 3
Without using route reflectors or confederations, an AS with 20 routers will require how many IBGP peerings?
A. 0
B. 1
C. 2
D. 3
E. 4
Answer: D