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NEW QUESTION: 1
Which of the following statements is most correct?
A. The cost of equity obtained by using retained earnings is generally regarded as being the rate of return stockholders require on the firm's outstanding common stock.
B. The bond-yield-plus-risk-premium approach to estimating a firm's cost of common equity involves adding a subjectively determined risk-premium to the market risk-free bond rate.
C. The higher the firm's flotation cost for new common equity, the more likely the firm is to use preferred stock, which has no flotation cost.
D. Due to the way the Marginal Cost of Capital (MCC) schedule is constructed, the first breakpoint in the MCC schedule must be associated with using up all available retained earnings and having to issue common stock.
E. The component cost of preferred stock is expressed as k(ps) (1 - T), because preferred stock dividends are treated as fixed charges, similar to the treatment of debt interest.
Answer: A
Explanation:
Explanation/Reference:
Explanation:
Preferred stock dividends are not tax deductible; therefore, the component cost of preferred stock is only k (ps). The risk premium in the bond-yield-plus-risk premium approach would be added to the firm's cost of debt, not the risk-free rate. The first break point does not have to be associated with retained earnings. It could be from other sources of funds such as debt. The choice between preferred stock or common equity financing depends on a number of factors, including required return, flotation costs, management's desired capital structure, etc.
NEW QUESTION: 2
What are valid representations of a Call Operation Action? (Choose two.)
A. B
B. E
C. A
D. D
E. F
F. C
Answer: F
NEW QUESTION: 3
You are the Office 365 administrator for your company. The company is running Microsoft Exchange Server 2007 with
Service Pack 3 on-premises and has 500 mailboxes.
Management requests that you migrate all mailboxes to Office 365. You are researching the available migration types.
You need to generate a custom step-by-step checklist for multiple migration types.
Which tool should you use?
A. Microsoft Remote Connectivity Analyzer
B. Exchange 2013 Server Role Requirements Calculator
C. Exchange Server Deployment Assistant
D. Exchange Best Practices Analyzer
Answer: C
Explanation:
The Exchange Server Deployment Assistant is used to help you configure an Exchange Server deployment. It is a web-
based tool that asks you questions about your current environment and then generates a custom step-by-step
checklist that will help you deploy Exchange Server for different types of scenarios.
The Exchange Server Deployment Assistant asks you questions about your current environment, how many mailboxes
you'd like to migrate and which method of migration you'd like to use. You can run the wizard multiple times selecting
different options to generate checklists for different migration scenarios.
References:
https://technet.microsoft.com/en-us/office/dn756393.aspx
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