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NEW QUESTION: 1
Which of the following statements is most correct?
A. The higher the firm's flotation cost for new common equity, the more likely the firm is to use preferred stock, which has no flotation cost.
B. The component cost of preferred stock is expressed as k(ps) (1 - T), because preferred stock dividends are treated as fixed charges, similar to the treatment of debt interest.
C. Due to the way the Marginal Cost of Capital (MCC) schedule is constructed, the first breakpoint in the MCC schedule must be associated with using up all available retained earnings and having to issue common stock.
D. The cost of equity obtained by using retained earnings is generally regarded as being the rate of return stockholders require on the firm's outstanding common stock.
E. The bond-yield-plus-risk-premium approach to estimating a firm's cost of common equity involves adding a subjectively determined risk-premium to the market risk-free bond rate.
Answer: D
Explanation:
Explanation/Reference:
Explanation:
Preferred stock dividends are not tax deductible; therefore, the component cost of preferred stock is only k (ps). The risk premium in the bond-yield-plus-risk premium approach would be added to the firm's cost of debt, not the risk-free rate. The first break point does not have to be associated with retained earnings. It could be from other sources of funds such as debt. The choice between preferred stock or common equity financing depends on a number of factors, including required return, flotation costs, management's desired capital structure, etc.

NEW QUESTION: 2
Which associate classified traffic to an application definition and assigns an action?
A. Application definitions
B. Traffic classifiers
C. Policy maps
D. Baseline Policies
Answer: C

NEW QUESTION: 3
A security engineer deploys an enterprise-wide host/endpoint technology for all of the company's corporate PCs. Management requests the engineer to block a selected set of applications on all PCs.
Which technology should be used to accomplish this task?
A. network NGFW
B. antivirus/antispyware software
C. application whitelisting/blacklisting
D. host-based IDS
Answer: C