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NEW QUESTION: 1
Emily De Jong, CFA, works for Charles & Williams Associates, a medium-sized investment firm operating in the northeastern United States. Emily is responsible for producing financial reports to use as tools to attract new clients. It is now early in 2009, and Emily is reviewing information for O'Connor Textiles and finalizing a report that will be used for an important presentation to a potential investor at the end of the week.
Following an acquisition of a major competitor in 1992, O'Connor went public in 1993 and paid its first dividend in 1999. Dividends are paid at the end of the year. After 2008, dividends are expected to grow for three years at 11%: $2.13 in 2009, $2.36 in 2010, and $2.63 in 2011. The average of the arithmetic and compound growth rates are given in Exhibit 1. Dividends are then expected to settle down to a long-term growth rate of 4%. O'Connor's current share price of $70 is expected to rise to $72.92 by the end of the year according to the consensus of analysts' forecasts.
O'Connor's annual dividend history is shown in Exhibit 1.

De Jong is also considering whether or not she should value O'Connor using a free cash flow model instead of the dividend discount model.

The output from the regression appears in Exhibit 2.
De Jong determines that employing the CAPM to estimate the required return on equity suffers from the following sources of error:
* Estimation of the model's inputs (e.g., the market risk premium). The company's dividend payment schedule.
* The accuracy of the beta estimate.
* Whether or not the model is the appropriate one to use.
De Jong observes that two reputable statistical analysis firms estimate betas for O'Connor stock at 0.85 and 1.10. She concludes that the differences between her beta estimate and the published estimates resulted from her use of standard errors in her regression to correct for serial correlation; the other firms did not make a similar adjustment.
De Jong considers using adjusted beta in her analysis. Typically, her company uses 1/3 for the value of .

She determines
that her adjusted beta forecast will be closer to the mean reverting level using this value than it would be using a value of 1/3.
In what situation is it most appropriate for De Jong to employ a:
Dividend discount model? FCFE model?
A. Non-control perspective ;FCFE aligned with dividend policy
B. Control perspective ;FCFE aligned with profitability
C. Non-control perspective ;FCFE aligned with profitability
Answer: C
Explanation:
Explanation/Reference:
Explanation:
In order for che dividend discount model to produce a reasonable estimate of share price, the investor should have a non-control perspective. For the FCFE model to be appropriate, there should be a link between FCFE and profitability. (Study Session 12, LOS4l.c)

NEW QUESTION: 2
A customer wants to use HP StoreOnce Catalyst on an HP StoreOnce 4420. Which benefits can Catalyst provide to the customer? (Select two.)
A. enables end users to control the whole backup operation in HP Data Protector through a hardware interface
B. Catalystenablesstores to be created on all HP StoreOnce models with 10 Gbit network connectivity, including HP StoreOnce VSA
C. Catalyst enablescopies to be controlled by the backup application and multi-hop replication using Catalyst devices
D. enables low-bandwidth backup due to moving some of the deduplication processing to the source side without rehydration
E. enables a maximum of five source Catalyst stores to be copied into a single target Catalyst store on an HP StoreOnce 4420 single node system
Answer: B,C

NEW QUESTION: 3
In a database, EXAMPLE is the default tablespace and
DEFERRED_SEGMENT_CREATION is FALSE.
Examine these commands executed by SYS:

What will be the outcome and why?
A. It will fail because U1 has no default tablespace
B. U1.TAB1 will be created
C. It will fail because U1 has no quota on EXAMPLE
D. It will fail because U1 does not have the CREATE TABLE privilege
E. It will fail because U1 does not have the CREATE SESSION privilege
Answer: D
Explanation:
Reference http://www.dba-oracle.com/t_oracle_deferred_segment_creation.htm

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