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NEW QUESTION: 1
Assume the following facts about Martin Corporation:
. The long-term debt was originally issued at par ($1,000/bond) and is currently trading at $1,250 per
bond.
. Martin Corporation can now issue debt at 150 basis points over U.S. treasury bonds.
. The current risk-free rate (U.S. treasury bonds) is 7 percent.
. Martin's common stock is currently selling at $32 per share.
. The expected market return is currently 15 percent.
. The beta value for Martin is 1.25.
. Martin's effective corporate income tax rate is 40 percent.
Based on these assumptions, what is the current net after-tax cost of debt for Martin Corporation?
A. 5.5 percent.
B. 5.1 percent.
C. 7.0 percent.
D. 8.5 percent.
Answer: B
Explanation:
Choice "c" is correct. 5.1 percent current net cost of debt.
The fact pattern states that debt can be currently secured at 150 basis points above the Treasury bond
rate. A basis point is equal to 1/100 of 1% (1% of 1%).
Applying the decimals it's:
1 50 basis points x 1/100 of 1% (or .0001)
this yields .015 or 1.5%
Add the additional basis points converted to percentage (1.5%) to the Treasury bond rate of 7% to arrive
at the pre-tax debt cost of 8.5%. Apply 1 - tax rate to arrive at the current net cost of debt as follows:

NEW QUESTION: 2
A customer has setup their EMC Celerra to backup through an Avamar NDMP Accelerator Node. They are not seeing any increased performance since the initial backup. They have investigated the Celerra and there are no outstanding issues.
What is a potential reason for the poor backup performance?
A. Data has a high change rate
B. Dataset options are set to Level 1
C. Dataset advanced option is blank
D. Dataset options are set to Level 0
Answer: D

NEW QUESTION: 3
Which of the following commands can be used to display the local routing table? (Choose TWO correct answers.)
A. route
B. trackroute
C. netstat
D. ifconfig
E. dig
Answer: A,C

NEW QUESTION: 4

A. SATA
B. FC
C. iSCSI
D. SAS
Answer: D