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