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NEW QUESTION: 1
DQZ Telecom is considering a project for the coming year, which will cost $50 million. DQZ plans to use
the following combination of debt and equity to finance the investment.
. Issue $15 million of 20-year bonds at a price of 101, with a coupon rate of 8 percent, and flotation costs
of 2 percent of par.
. Use $35 million of funds generated from earnings.
The equity market is expected to earn 12 percent. U.S. treasury bonds are currently yielding 5 percent.
The beta coefficient for DQZ is estimated to be .60. DQZ is subject to an effective corporate income tax
rate of 40 percent.
The before-tax cost of DQZ's planned debt financing, net of flotation costs, in the first year is:
A. 8.08 percent.
B. 7.92 percent.
C. 10.00 percent.
D. 11.80 percent.
Answer: A
Explanation:
Choice "b" is correct. 8.08 percent before-tax cost of debt financing, net of flotation costs.
NEW QUESTION: 2
Drag and Drop Question
Drag and drop the IPv6 feature on the left to the matching feature function on the right. Not all options are used.
Answer:
Explanation:
NEW QUESTION: 3
In which of the following circumstances is it apparent that the internal auditor exercised due professional care in carrying out his duties?
1.The internal auditor weighed the cost of the engagement against its potential benefits.
2.The internal auditor used anonymous information from a whistleblower to report the existence of fraudulent activity.
3.The internal auditor found minor and major instances of fraud and highlighted only the major instances in its report,in consideration of the board's limited time.
4.The internal auditor decided to use new auditing software to assist with the statistical analysis required during the engagement.
A. 3 and 4 only
B. 1 and 4 only
C. 1 and 2 only
D. 2 and 3 only
Answer: B
NEW QUESTION: 4
You are the project manager for your organization. You have worked with the project team to create the project scope statement. The key stakeholders have signed off on the project scope and they are eager for you and the project team to begin creating the deliverables identified within the project scope. What process must you and the project team complete next in this scenario?
A. Determine the project budget.
B. Create the WBS.
C. Create the risk assessment.
D. Create the activity list.
Answer: B
Explanation:
Explanation/Reference:
Explanation:
Once the project scope statement has been approved, the project manager and the project team should decompose the project scope statement into the WBS.
Incorrect Answers:
A: Before the activity list may be created, the WBS is needed. The activity list is based on the work packages identified in the WBS.
C: Creating the risk assessment for the project is part of project planning, but it is not the most appropriate process to complete at this time.
D: Determining the project budget is the process of aggregating the estimated costs of individual activities or work packages to establish an authorized cost baseline. Determining the project budget is a part of project cost management.