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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. 7.19
B. 6.66
C. 4.32
D. information about earnings and dividends is missing
Answer: B
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 B
B. Option C
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 selects a compression algorithm.
B. It specifies the transmission media.
C. It is used to detect loops.
D. It is an interface identifier.
Answer: C
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