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NEW QUESTION: 1
Steadybeta currently operates 3 projects, resulting in a beta of 1.27. It is considering a risky expansion project whose cash flow analysis indicates a beta of 2.3. The project requires a capital commitment of $4.8 million and has an NPV of $2 million. The current risk-free rate is 5.6% and the market risk premium is
8.9%. Steadybeta's current market capitalization is $17.2 million. If Steadybeta undertook the project, the required rate of return expected by its shareholders will be:
A. 16.2%
B. 19.5%
C. 13.9%
D. 14.8%
Answer: B
Explanation:
Explanation/Reference:
Explanation:
19.5% The firm can be considered a portfolio of 4 projects. The beta of a portfolio equals the weighted average of the betas of the individual components. The weight of a component equals the fraction of the market value it comprises. Since the project has an NPV of $2 million, its market value equals $6.8 million and the market value after the project is undertaken will be $(17.2+6.8) = $24 million. Therefore, the beta of the firm after it undertakes the project equals 17.2/24*1.27 + 6.8/24*2.3 = 1.56. The required rate of return then equals 5.6% + 1.56*8.9% = 19.5%.
NEW QUESTION: 2
It was requested to add an AOC file for a new vendor (Polycom) with enterprise OID 1.3.6.1.4.1.2684. The vendor devices should be classified as network devices. Which AOC example is correct?
A)
B)
C)
D)
A. Option A
B. Option D
C. Option B
D. Option C
Answer: D
NEW QUESTION: 3
You are trying to register an H.323-based Cisco TelePresence system to Cisco Unified Communications Manager and a Cisco DX70 system to the Cisco VCS Control.
Why do neither of the units want to register?
A. Both systems need to register to the Cisco VCS Control, but the H.323-based system needs to have the gatekeeper setting set to "Direct."
B. The H.323-based system needs to register to the Cisco VCS Control with an E.164 number, and the Cisco DX70 needs the TFTP address to register on the Cisco Unified Communications Manager.
C. You need Cisco TelePresence Management Suite to register Cisco TelePresence systems.
D. You need Cisco TelePresence Server to register Cisco TelePresence systems.
E. Both systems need to register to the Cisco Unified Communications Manager, as the Cisco VCS Control is used only for firewall traversal.
F. The H.323-based system needs an E164 number to register to Cisco Unified Communications Manager, and the Cisco DX70 needs to have the MAC address configured first on the Cisco VCS Control.
Answer: B
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