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NEW QUESTION: 1
Assume the following facts about Martin Corporation:
. The long-term debt was originally issued at par ($1,000/bond) and is currently trading at $1,250 per
bond.
. Martin Corporation can now issue debt at 150 basis points over U.S. treasury bonds.
. The current risk-free rate (U.S. treasury bonds) is 7 percent.
. Martin's common stock is currently selling at $32 per share.
. The expected market return is currently 15 percent.
. The beta value for Martin is 1.25.
. Martin's effective corporate income tax rate is 40 percent.
Based on these assumptions, what is the current net after-tax cost of debt for Martin Corporation?
A. 5.5 percent.
B. 7.0 percent.
C. 5.1 percent.
D. 8.5 percent.
Answer: C
Explanation:
Choice "c" is correct. 5.1 percent current net cost of debt.
The fact pattern states that debt can be currently secured at 150 basis points above the Treasury bond
rate. A basis point is equal to 1/100 of 1% (1% of 1%).
Applying the decimals it's:
1 50 basis points x 1/100 of 1% (or .0001)
this yields .015 or 1.5%
Add the additional basis points converted to percentage (1.5%) to the Treasury bond rate of 7% to arrive
at the pre-tax debt cost of 8.5%. Apply 1 - tax rate to arrive at the current net cost of debt as follows:

NEW QUESTION: 2
Instructions







Branch1ルーターがR1ルーターとのWAN接続を失ったのはなぜですか？
A. Branch1シリアルインターフェイスがシャットダウン状態になります。
B. 支店1ルータのPPPマルチリンクインターフェイスでIPアドレスが正しく設定されていません。
C. PPPマルチリンクグループがBranch1シリアルインターフェイスで誤って設定されています。
D. PPPマルチリンクグループがR1シリアルインターフェイスで誤って設定されています。
Answer: B
Explanation:
This question clearly stated there is a WAN connectivity issue between R1 and Branch1 so we should check both of them with the "show ip interface brief" command. On R1:

On Branch1:

We can see that although the Multilink1 interfaces are in "up/up" state but they are not in the same subnet. According to the IP address scheme shown on the topology we can deduce the Multilink interface on Branch1 has been misconfigured, it should be 192.168.14.2 instead.

NEW QUESTION: 3
Which of the following technologies allows secure communication with a previously unverified entity?
A. PKI
B. TKIP
C. IMAP
D. VPN
Answer: A

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