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NEW QUESTION: 1
The stock of a zero growth firm has a beta of 1.3 at a time when the market premium equals 7.7% and the risk-free rate equals 5%. The firm's earnings multiplier ratio equals ________.
A. 4.32
B. 7.19
C. information about earnings and dividends is missing
D. 6.66
Answer: D
Explanation:
Explanation/Reference:
Explanation:
According to the Dividend Discount Model, P/E = payout ratio/(k-g) in standard notation. A no growth firm has a retention ratio of zero and a payout ratio of 1. Further, g = 0 for no growth. Therefore, the P/Eratio of a no-growth firm is simply equal to the reciprocal of its required rate of return. the firm's CAPM required rate = 5% + 1.3 * 7.7% = 15%. The earnings multiplier is therefore equal to 1/0.15 = 6.66.
NEW QUESTION: 2
An engineer must configure a/30 subnet between two routers. Which usable IP address and subnet mask combination meets this criteria?
A. Option C
B. Option B
C. Option A
D. Option D
Answer: C
NEW QUESTION: 3
What is the purpose of the magic number in an LCP negotiation?
A. It is an interface identifier.
B. It specifies the transmission media.
C. It selects a compression algorithm.
D. It is used to detect loops.
Answer: D
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