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NEW QUESTION: 1
XYZ Corp. recently issued some preferred shares with a fixed preferred rate of $1.32 per share.
Further research reveals that XYZ's common shares have a beta of 1.3, at a time when the market risk premium is 5.2% above the risk-free rate of 3.2%. If the difference in the risk premium between XYZ's common and preferred shares is 2%, what would be a fair value for the preferred shares?
A. $15.71
B. $16.58
C. Cannot be solved with the given information.
Answer: B
Explanation:
Step 1. Compute the cost of common equity. R = 3.2 + 1.3 x 5.2 = 9.96.
Step 2. Since the risk premium for preferred shares is always lower than the common equity of the same issuer. Rpre = 9.96 -2.0% = 7.96%.
Step 3. Compute value. P = 1.32/0.0796 = $16.58.

NEW QUESTION: 2
During the planning stage of a project, a project manager identifies many risks that could impact the project. Two of them have impacts that could translate into the total failure of the project.
Based on these findings, what should the project manager do next?
A. Perform both qualitative and quantitative risk analyses to determine how to proceed.
B. Modify the work breakdown structure (WBS) to include some preventive activities to minimize the effects of those risks.
C. Notify all stakeholders about this discovery, and prepare immediate contingency plans.
D. Estimate the cost of the contingency plans, and recommend the dismissal of the project if the cost is too high.
Answer: A

NEW QUESTION: 3
Which two are switch security features that enable a secure borderless network?
A. MACSec
B. Cisco ASA Firewall
C. device profiling and profile-based selection of security policies
D. Security Group Tagging
Answer: A,D

NEW QUESTION: 4
Which ip address would a network technician ping on the local host, to test the ip stack?
A. 224.0.0.5
B. 224.0.0.9
C. 255.255.255.255
D. 127.0.0.1
Answer: D