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NEW QUESTION: 1
A firm's reliance on debt ________ as bankruptcy costs increase. The debt ratio _______ as the probability of default increases.
A. decreases; increases.
B. decreases; decreases.
C. increases; decreases.
D. increases; increases.
Answer: B
Explanation:
Explanation/Reference:
Explanation:
Expected bankruptcy costs are a deterrent to high debt levels. These costs increase if the probability of default increases or the costs associated with the bankruptcy increase. In either of these cases, a firm will reduce its reliance on debt.
NEW QUESTION: 2
A. Option B
B. Option A
C. Option C
D. Option D
Answer: C
NEW QUESTION: 3
Your customer requires a Layer 2 VPN service (draft-kompella-mpls-l2vpn). You are asked to describe the operational requirements on the PE router supporting this service.
Which two statements are true in this scenario? (Choose two.)
A. The ingress PE router for a traffic flow maintains the data-link connection identifier.
B. The ingress PE router associates a single MPLS label with the corresponding traffic flows.
C. The ingress PE router associates multiple MPLS labels with the corresponding traffic flows.
D. The ingress PE router for a traffic flow removes the data-link connection identifier.
Answer: A,B
Explanation:
Each PE transmits a single small chunk of information about every CE that the PE is connected to every other PE. That means each PE need only maintain a single chunk of information from each CE in each VPN and keep a single route to every site in every VPN.