ARC-101 Practice Questions

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NEW QUESTION: 1
Which two options correct when using VSS to combine two physical switches into one logical switch? (Choose two)
A. Both data planes forward traffic simultaneously.
B. Control planes are combined into one virtual control plane.
C. Only one data plane forwards traffic, while the other data plane is on standby.
D. Both control planes forward traffic simultaneously.
Answer: A,B

NEW QUESTION: 2
DRAG DROP
Click the Task button.
Match the Performance Manager Historical Graph option with an analysis function.

Answer:
Explanation:

NEW QUESTION: 3
The audit process helps ensure transparency, probity, prudence, and, of course, accountability in public financial management. Following are examples of transparency, where public knowledge and scrutiny may change management decisions EXCEPT:
A. Travel expenses
B. Private employee salaries
C. Public employee salaries
D. Other perks
Answer: B

NEW QUESTION: 4
The capital structure of a firm includes bonds with a coupon rate of 12% and an effective interest rate is
1 4%. The corporate tax rate is 30%. What is the firm's net cost of debt?
A. 8.4%
B. 12.0%
C. 14.0%
D. 9.8%
Answer: D
Explanation:
Choice "b" is correct. The net cost of debt is computed as the effective interest rate net of tax, or 14%
x .70 = 9.8%. The question is trying to trick the candidate into using the coupon rate of 12% rather than
the effective interest rate. The coupon rate is used only if it is the same as the effective interest rate and
there are no flotation costs. Choice "a" is incorrect. The net cost of debt is computed as the effective
interest rate net of tax, or 14% x .70 = 9.8%, not the coupon rate of 12% x .70 = 8.4%. Choice "c" is
incorrect. The net cost of debt is computed as the effective interest rate net of tax, or 14% x .70 = 9.8%,
not the coupon rate of 12% by itself. The cost of debt is computed on an after-tax basis and uses the
effective interest rate instead of the coupon rate. Choice "d" is incorrect. The net cost of debt is computed
as the effective interest rate net of tax, or 14% x .70 = 9.8%, not the effective interest rate of 14% by itself.
The cost of debt is computed on an after-tax basis.