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<p><strong>NEW QUESTION: 1</strong><br/>Assume the following information about a common stock:<br/>Last annual dividend per share: $0.25<br/>Price per share: $18.90<br/>Required return: 15% per year<br/>Expected growth rate: 11% per year<br/>What is the value of this common stock?<br/><strong>A.</strong> $16.43<br/><strong>B.</strong> $17.03<br/><strong>C.</strong> $6.94<br/><strong>D.</strong> The answer cannot be determined from the information provided.<br/><strong>E.</strong> $6.25<br/><strong>Answer: C</strong><br/>Explanation:<br/>Explanation/Reference:<br/>Explanation:<br/>To determine the value of a common stock using the Infinite Period Dividend Discount Model, use the following equation:<br/>{V = [d1 / (k - g)]}<br/>Where: V = the value of the common stock at t0, d1 = the annual dividend at t1 (which is found by multiplying d0 by (1 + g), k = the investor's required rate of return, and g = the anticipated annual growth rate.<br/>In this example, all of the necessary information has been provided, and incorporating this information will lead to the following:<br/>{V = [($0.25 * 1.11) / (0.15 - 0.11)] = $6.94<br/>This value is significantly less than the price of the shares in the open market. While at first it may be appealing to assume that the common stock is overvalued, this may be a dangerous assumption. Equally likely is the possibility that the Infinite Period DDM is not the ideal valuation model for this common stock.<br/>Perhaps the price of this common stock is reflecting other sources of potential cash flows, ratherthan the summation of the present value of future dividends. This is an important point to consider, and one with which you should become familiar.<br/><br/></p><p><strong>NEW QUESTION: 2</strong><br/>What is a SMTO server that is configured to allow anyone to send email through it called?<br/><strong>A.</strong> Open Relay<br/><strong>B.</strong> Open Email<br/><strong>C.</strong> Open Office<br/><strong>D.</strong> Open MTA<br/><strong>Answer: A</strong><br/><br/></p><p><strong>NEW QUESTION: 3</strong><br/>A new EMC Avamar customer would like to configure backups of a single SQL instance running on a two- node Microsoft SQL cluster. To enable backups of the SQL database, what is the order of installation for the client software?<br/><strong>A.</strong> Install the Avamar Windows client and Avamar SQL client on both nodes in the cluster.<br/>Configure the Avamar Cluster Client on both nodes in the cluster.<br/><strong>B.</strong> Install Avamar Windows client on both nodes.<br/>Install the Avamar SQL client on the active node in the cluster.<br/><strong>C.</strong> Install the Avamar Windows client and Avamar SQL client on both nodes in the cluster.<br/>Configure the Avamar Cluster Client on the active node in the cluster.<br/><strong>D.</strong> Install the Avamar Windows client and Avamar SQL client on both nodes in the cluster.<br/>Create AvamarBackupUser and configure the Avamar Cluster Client on both nodes in the cluster.<br/><strong>Answer: C</strong><br/><br/></p><script type="application/ld+json">
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