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NEW QUESTION: 1
General Investments is considering the purchase of a significant stake in Pacific Computer Components (PCC). Although PCC has stable production output, the company is located in a developing country with an uncertain economic environment. Since the monetary environment is particularly worrisome. General has decided to approach the valuation of PCC from a free cash flow model using real growth rates. In real rate analysis, General uses a modified build-up method for calculating the required real return, specifically:
required real return = country real rate + industry adjustment +
company adjustment
Elias Sando, CFA, an analyst with General, estimates the following information for PCC:
Domestic inflation rate = 8.738%
Nominal growth rate = 12.000%
Real country return = 3.000%
Industry adjustmen = 3.000%
Company adjustment = 2.000%
Additionally, Exhibit 1 reports information from PCC's financial statements for the year just ended (stated in LC).

PCC generally maintains relatively constant proportions of equity and debt financing and is expected to do so going forward.
Sando has gathered information on earnings before interest, taxes, depreciation, and amortization (EBITDA) and is contemplating its direct use in another cash flow approach aimed at valuing PCC.
Consider the following two statements regarding EBITDA:
Statement 1: EBITDA is not a good proxy for free cash flow to the firm (FCFF) because it does not incorporate the importance of the depreciation tax shield nor does it reflect the investment in working capital or in fixed capital.
Statement 2: EBITDA is also a poor proxy for FCFE.
Free cash flow to the firm (FCFF) for PCC is closest to
A. LC8,100,000.
B. LC7,300,000.
C. LCI0,200,000.
Answer: C
Explanation:
Explanation/Reference:
Explanation:
FCFF = FCFE + Int(l - tax rate) - net borrowing = 7.3 + 5.0(1 - 0.34) - (2.4 - 2.0) = LC10.2 million, or LC10,200,000. (Study Session 12, LOS 41.e)

NEW QUESTION: 2

A. Option B
B. Option D
C. Option C
D. Option A
Answer: A,C
Explanation:
Predictive DRS
Predictive DRS is a new feature that leverages the predictive analytics of vRealize Operations Manager with the powerful resource scheduler algorithm of vSphere DRS.
Together, these two products enable workload balancing for certain VMs before resource utilization spikes occur, potentially eliminating a great amount of resource contention that might have occurred in the past. vRealize Operations Manager runs its dynamic thresholds algorithm nightly against the VMs on which it collects data. These dynamic thresholds create forecasted metrics for the future utilization of the VMs. The metrics are then passed to vSphere DRS to determine the best placement and balance of VMs before resource utilization spikes occur. Predictive DRS helps prevent resource contention on hosts that run VMs with predictable utilization patterns.

NEW QUESTION: 3
HOTSPOT
You are developing a SQL Server Integration Services (SSIS) package.
You use a Data Profiling task to examine the data from a source system.
You need to establish: - The minimum and maximum dates for the datetime columns in the source data - The minimum, maximum, and average values for numeric columns in the source data You need to use the appropriate profile type in the Data Profiling task.
Which profile type should you use? (To answer, select the appropriate profile type in the answer area.)

Answer:
Explanation:

NEW QUESTION: 4
When developing an effective risk-based plan to determine audit priorities, an internal audit activity should start by:
A. Observing and analyzing controls.
B. Identifying risks to the organization's operations.
C. Prioritizing known risks.
D. Reviewing organizational objectives.
Answer: D