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NEW QUESTION: 1
A company's current earnings before interest and taxation are $5 million.
These are expected to remain constant for the forseeable future.
The company has 10 million shares in issue which currently trade at $3.60.
It also has a $10 million long term floating rate loan.
The current interest rate on this loan is 5%.
The company pays tax at 20%.
The company expects interest rates to increase next year to 6% and it's Price/Earnings (P/E) ratio to move to 9.5 times by the end of next year.
What percentage reduction in the share price will occur by the end of next year if the interest rate increase and the P/E movement both occur?
A. Reduction of 7%
B. Reduction of 1%
C. Reduction of 0%
D. Reduction of 5%
Answer: A

NEW QUESTION: 2
The purpose of audits of financial statements is to issue an opinion on the fairness of the financial statements and to evaluate all of the following assertions (explicit or implicit) by management EXCEPT:
A. Rights and obligations assertions address whether the entity has legal rights to the assets and obligations to the liabilities disclosed on the financial statements
B. Presentation and disclosure assertions address whether the elements of the financial statements are properly organized, classified and disclosed
C. Existence or occurrence assertions address whether available information addresses actual transactions, assets, and liabilities
D. completeness assertions address whether all material financial information is included in financial statements
Answer: A

NEW QUESTION: 3
A company has two applications it wants to migrate to AWS. Both applications process a large set of files by accessing the same files at the same time. Both applications need to read the files with low latency. Which architecture should a solutions architect recommend for this situation?
A. Configure one memory optimized Amazon EC2 instance to run both applications simultaneously. Create an Amazon Elastic Block Store (Amazon EBS) volume with Provisioned IOPS to store the data.
B. Configure two AWS Lambda functions to run the applications. Create an Amazon EC2 instance with an instance store volume to store the data.
C. Configure two AWS Lambda functions to run the applications. Create an Amazon EC2 instance with an Amazon Elastic Block Store (Amazon EBS) volume to store the data.
D. Configure two Amazon EC2 instances to run both applications. Configure Amazon Elastic File System (Amazon EFS) with General Purpose performance mode and Bursting Throughput mode to store the data.
Answer: D

NEW QUESTION: 4
A Solution Architect is designing a three-tier web application. The Architect wants to restrict access to the
database tier to accept traffic from the application servers only. However, these application servers are in an
Auto Scaling group and may vary in quantity.
How should the Architect configure the database servers to meet the requirements?
A. Configure the database security group to allow database traffic from the application server IP addresses.
B. Configure the database subnet network ACL to deny all inbound non-database traffic from the
application-tier subnet.
C. Configure the database subnet network ACL to allow inbound database traffic from the application-tier
subnet.
D. Configure the database security group to allow database traffic from the application server security
group.
Answer: B