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NEW QUESTION: 1
The Global Advertising Company had net income after interest but before taxes of $40,000 this year. The marginal tax rate is 40 percent, and the dividend payout ratio is 30 percent. The company can raise debt at a 12 percent interest rate. The last dividend paid by Global was $0.90. Global's common stock is selling for
$8.59 per share, and its expected growth rate in earnings and dividends is 5 percent. If Global issues new common stock, the flotation cost incurred will be 10 percent. Global plans to finance all capital expenditures with 30 percent debt and 70 percent equity. What is the cost of common equity raised by selling new stock?
A. 9.66%
B. 17.22%
C. 16.00%
D. 10.33%
E. 12.22%
Answer: B
Explanation:
Explanation/Reference:
Explanation:
k(e) (component cost of external equity) = $.945/$8.59 (1-.10) + 0.05 = 0.1722 = 17.22%.

NEW QUESTION: 2
Oliver Goldsmith (17301774) wrote criticism, plays, novels, biographies, travelogues, and nearly every
other conceivable kind of composition. This good-humored essay is from a series published in the Public
Ledger and then in book form as The Citizen of the World (1762).
Were we to estimate the learning of the English by the number of books that are every day published
among them, perhaps no country, not even China itself, could equal them in this particular. I have
reckoned not less than twenty-three new books published in one day, which, upon computation, makes
eight thousand three hundred and ninety-five in one year. Most of these are not confined to one single
science, but embrace the whole circle. History, politics, poetry, mathematics, metaphysics, and the
philosophy of nature, are all comprised in a manual no larger than that in which our children are taught the
letters. If then, we suppose the learned of England to read but an eighth part of the works which daily
come from the press and surely non can pretend to learning upon less easy terms), at this rate every
scholar will read a thousand books in one year. From such a calculation, you may conjecture what an
amazing fund of literature a man must be possessed of, who thus reads three new books every day, not
one of which but contains all the good things that ever were said or written.
And yet I know not how it happens, but the English are not, in reality so learned as would seem from this
calculation. We meet but few who know all arts and sciences to perfection; whether it is that the generality
are incapable of such extensive knowledge, or that the authors of those books are not adequate
instructors. In China, the Emperor himself takes cognizance of all the doctors in the kingdom who profess
authorship. In England, every man may be an author, that can write; for they have by law a liberty, not
only of saying what they please, but of being also as dull as they please.
Yesterday, as I testified to my surprise, to the man in black, where writers could be found in sufficient
number to throw off the books I saw daily crowding from the press. I at first imagined that their learned
seminaries might take this method of instructing the world. But, to obviate this objection, my companion
assured me that the doctors of colleges never wrote, and that some of them had actually forgot their
reading. "But if you desire," continued he, "to see a collection of authors, I fancy I can introduce you to a
club, which assembles every Saturday at seven . . . ." I accepted his invitation; we walked together, and
entered the house some time before the usual hour for the company assembling. My friend took this
opportunity of letting me into the characters of the principal members of the club . .
.
"The first person," said he, "of our society is Doctor Nonentity, a metaphysician. Most people think him a
profound scholar, but, as he seldom speaks, I cannot be positive in that particular; he generally spreads
himself before the fire, sucks his pipe, talks little, drinks much, and is reckoned very good company. I'm
told he writes indexes to perfection: he makes essays on the origin of evil, philosophical inquiries upon
any subject, and draws up an answer to any book upon 24 hours' warning . . . ."
The tone of paragraph 2 may best be described as
A. solemn
B. awestruck
C. affectionate
D. self-satisfied
E. sardonic
Answer: E
Explanation:
Explanation/Reference:
The whole tone of the piece is ironic; Goldsmith is making his pointthrough dry, sardonic wit.

NEW QUESTION: 3
A general decrease in price levels in the economy is referred to as:
A. recession.
B. disinflation.
C. stagflation.
D. deflation.
Answer: D
Explanation:
Explanation/Reference:
Explanation: A general decrease in price levels in the economy is referred to as deflation. Disinflation refers to a decrease in the rate of inflation, but price levels in general are still rising. Stagflation refers to an economic condition characterized by high levels of inflation and high unemployment levels. A recession is a prolonged decline in the general economy, typically measured by a decline in the nation's gross domestic product (GDP).

NEW QUESTION: 4
On which protocol number does the authentication header operate?
A. 0
B. 06
C. 1
D. 2
Answer: A
Explanation:
Authentication Header (AH) is a member of the IPsec protocol suite. AH guarantees connectionless integrity and data origin authentication of IP packets. Further, it can optionally protect against replay attacks by using the sliding window technique and discarding old packets (see below). AH operates directly on top of IP, using IP protocol number 51.
Reference: http://en.wikipedia.org/wiki/IPsec