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NEW QUESTION: 1
Calculate the cost of debt for the following firm:
Borrowing Rate 10%
Marginal Tax Rate 40%
Project IRR 12.5%
Owner's Equity 15%
A. 10%
B. 6%
C. 60%
D. 1.5%
E. 27.5%
Answer: B
Explanation:
Explanation/Reference:
Explanation:
The cost of debt is simply the rate of borrowing less the tax savings. Due to the fact that interest expense is tax deductible, the cost of debt in this case is 10%(1 - .4) = 10%(.6) = 6%.

NEW QUESTION: 2
What is the Biba security model concerned with?
A. Availability
B. Confidentiality
C. Reliability
D. Integrity
Answer: D
Explanation:
The Biba security model addresses the integrity of data being threatened when subjects at lower security levels are able to write to objects at higher security levels and when subjects can read data at lower levels.
Source: HARRIS, Shon, All-In-One CISSP Certification Exam Guide, McGraw-
Hill/Osborne, 2002, Chapter 5: Security Models and Architecture (Page 244).

NEW QUESTION: 3

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