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NEW QUESTION: 1
Grateway Inc. has a weighted average cost of capital of 11.5 percent. Its target capital structure is 55 percent equity and 45 percent debt. The company has sufficient retained earnings to fund the equity portion of its capital budget. The before-tax cost of debt is 9 percent, and the company's tax rate is 30 percent. If the expected dividend next period and current stock price are $5 and $45, respectively, what is the company's growth rate?
A. 6.75%
B. 3.44%
C. 4.64%
D. 2.68%
E. 8.16%
Answer: C
Explanation:
Explanation/Reference:
Explanation:
Solve for k(s) (component cost of retained earnings or internal equity):
WACC (Weighted Average Cost of Capital) = 11.5% = w(s)k(s) + w(d)k(d)(1 - T)
11.5% = 0.55k(s) + 0.45(0.09)(0.70)
k(s) = 15.75%.
Solve for g: k(s) = 15.75% = D1/P0 + g
15.75% = $5/$45 + g
g = 4.64%.
NEW QUESTION: 2
You need to implement Microsoft Power BI to analyze and visualize data.
Which two actions can you perform? Each correct answer presents a complete solution.
A. Display the most recent version of the data always.
B. Implement custom visualizations.
C. Use iframes to display content
D. Use a file that is stored in Microsoft OneDrive as a data source.
Answer: B,C
NEW QUESTION: 3
Consider the following statements: DBSPACETEMP=tempdbs1, tempdbs2, tempdbs3;
CREATE DATABASE mydb WITH LOG IN datadbs1; CREATE TEMP TABLE temp1 (col1 int); Which statement is true?
A. The temp table will be created in root dbspace.
B. The temp table will be created in datadbs1.
C. The temp table will be careated in one of the dbspaces listed in DBSPACTEMP.
D. The temp table will be created round-robin across the dbspaces in DBSPACETEMP.
Answer: A
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