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NEW QUESTION: 1
Bouchard Company's stock sells for $20 per share, its last dividend was $1.00. Its growth rate is a constant 6 percent, and the company would incur a flotation cost of 20 percent if it sold new common stock. Retained earnings for the coming year are expected to be $1,000,000, and the amount of common equity in the capital structure is 60 percent. If Bouchard has a capital budget of $2,000,000, what component cost of common equity will be built into the WACC for the last dollar of capital the company raises?
A. 11.30%
B. 11.80%
C. 12.15%
D. 11.45%
E. 12.63%
Answer: E
Explanation:
Explanation/Reference:
Explanation:
BP(RE) = RE/Equity fraction = $1,000,000/0.6 = $1,666,667.
Since the capital budget will be $2 million, and since all equity in the WACC (Weighted Average Cost of Capital) beyond $1,666,667 will be external equity, the WACC of the last dollar raised will include equity at a cost of k(e) (component cost of external equity obtained by issuing new common stock as opposed to retaining earnings):
k(e) = $1(1.06)/$20(1 - 0.2) + 0.06 = 0.0663 + 0.06 = 0.1263 = 12.63%.

NEW QUESTION: 2

A. Option B
B. Option A
C. Option D
D. Option C
Answer: C

NEW QUESTION: 3
Your network contains an Active Directory domain named contoso.com. All domain controllers run Windows Server 2012 R2. One of the domain controllers is named DC1.
The DNS zone for the contoso.com zone is Active Directory-integrated and has the default settings.
A server named Server1 is a DNS server that runs a UNIX-based operating system.
You plan to use Server1 as a secondary DNS server for the contoso.com zone.
You need to ensure that Server1 can host a secondary copy of the contoso.com zone.
What should you do?
A. From DNS Manager, modify the Zone Transfers settings of the contoso.com zone.
B. From DNS Manager, modify the Advanced settings of DC1.
C. From DNS Manager, modify the Security settings of the contoso.com zone.
D. From Windows PowerShell, run the Set-DnsServerSetting cmdlet and specify DC1 as a target.
E. From DNS Manager, modify the Security settings of DC1.
Answer: A
Explanation:
Explanation/Reference:
References: https://technet.microsoft.com/en-us/library/cc771652(v=ws.11).aspx#BKMK_cmd

NEW QUESTION: 4
How many 3.5-inch hard disks does Huawei 2288H V5 support?
A. 0
B. 1
C. 2
D. 3
Answer: A