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NEW QUESTION: 1
Assume that nominal interest rates just increased substantially but that the expected future dividends for an entity over the long run were not affected. As a result of the increase in nominal interest rates, the entity's share price should
A. Stay constant
B. Decrease.
C. Change, but in no obvious direction_
D. Increase.
Answer: B
Explanation:
The dividend growth model is used to calculate the price of a share.

Assuming that DI and G remain constant, an increase in Rs resulting from an increase in the nominal interest rate will cause Po to decrease. A higher interest rate raises the required return of investors, which results in a lower share price. An entity has the following three investment projects available:

The entity has a 4O f debt and 60 l equity capital structure. Each monetary unit of investment funds will be raised in these proportions .40 of debt and .60 of equity). The marginal cost of financing increases with the amount of new funds raised, as follows:

These investment opportunities and financing costs are shown in the graph below.

MCC=Marginal cost of capital IOS=Investment opportunity schedule

NEW QUESTION: 2
Which two benefits of using a Cisco Business Architecture methodology are true?
A. It drives larger and more profitable results for customers, Cisco and partners.
B. It enhances the way Cisco does business with its customers
C. It provides project management of a complex technology deployment
D. It supports the client IT department to define the technology architecture.
E. It determines the low-level design for network infrastructure.
Answer: A,B

NEW QUESTION: 3
An operations manager continuously raises concerns about a project's benefits to the company While some concerns are valid most of the time these concerns have caused delays in project meetings How should the project manager handle this'?
A. Include the operations manager's concerns in the risk register and assign actions to mitigate the risks.
B. Discuss the meeting delays with the director of operations and ask for support with the concerns.
C. Escalate the concerns to the project sponsor and discuss options to address them
D. Review the operations manager's concerns and ensure these concerns are addressed
Answer: B

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