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  • Vendor : SAP
  • Certifications : SAP Certified Application Associate
  • Exam Name : SAP Certified Application Associate - SAP SuccessFactors Succession Management 1H/2023
  • Exam Code : C_THR85_2305
  • Total Questions : 376 Q&As
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SKU: C_THR85_2305 Categories: ,

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    NEW QUESTION: 1
    The management of Intelligent Semiconductor have adhered to the following capital structure: 40% debt,
    45% common equity, and 15% perpetual preferred equity. The following information applies to the firm:
    Before-tax cost of debt = 8.25%
    Combined state/federal tax rate = 33%
    Expected return on the market = 16.5%
    Annual risk-free rate of return = 6.25%
    Historical Beta coefficient of Intelligent Semiconductor's Common Stock = 1.34 Annual preferred dividend
    = $1.05
    Preferred stock net offering price = $18.90
    Expected annual common dividend = $0.20
    Common stock price = $100.90
    Expected growth rate = 9.75%
    Subjective risk premium = 5.3%
    Given this information, and using the Capital Asset Pricing Model (CAPM) to calculate the component cost of common equity, what is the Weighted Average Cost of Capital for Clay Industries?
    A. 12.03%
    B. The WACC for Clay Industries cannot be calculated from the information.
    C. 13.55%
    D. 12.94%
    E. 11.92%
    F. 15.60%
    Answer: A
    Explanation:
    Explanation/Reference:
    Explanation:
    The calculation of the Weighted Average Cost of Capital is as follows: {fraction of debt * [yield to maturity on outstanding long-term debt][1-combined state/federal income tax rate]} + {fraction of preferred stock *
    [annual dividend/net offering price]} + {fraction of common stock * cost of equity}. The cost of common equity can be calculated using three methods, the Capital Asset Pricing Model (CAPM), the Dividend- Yield-plus-Growth-Rate (or Discounted Cash Flow) approach, and the Bond- Yield-plus-Risk-Premium approach. In this example, you are asked to calculate the cost of common equity using the Capital Asset Pricing Model. To calculate the cost of equity using this approach, use the following equation: {risk-free rate + beta(expected return on the market - risk-free rate). Incorporating the given information into this equation gives a cost of equity of 19.989% The after-tax cost of debt can be found by multiplying the yield to maturity on the firm's outstanding long-term debt (8.25%) by (1-tax rate). Using this method, the after-tax cost of debt is found as 5.50%. The calculation of the cost of perpetual preferred stock is relatively straightforward, simply divide the annual preferred dividend ($1.05) by the net offering price ($18.90).
    Using this method, the cost of preferred stock is found as 5.556%. Incorporating these figures into the WACC equation gives the answer of 12.027%.

    NEW QUESTION: 2
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    A. Each static MAC address entry can be bound only to one outbound interface
    B. You can check whether data is forwarded between two connected devices by checking the static MAC address entries
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    D. After a device is reset an interface card is hot swapped or an interface card is reset, the saved entries on the device or interface card are not lost
    Answer: C,D

    NEW QUESTION: 3
    Ascend 310 can provide computing power up to?
    A. 16TOPS
    B. 2TOPS
    C. 8TOPS
    D. 4TOPS
    Answer: A
    Explanation:
    Reference:
    https://www.huawei.com/en/press-events/news/2019/8/huawei-ascend-910-most-powerful-ai-


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