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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. 5.1 percent.
B. 8.5 percent.
C. 7.0 percent.
D. 5.5 percent.
Answer: A
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
How can an administrator disable the SSL warning message?
A. Select Access Gateway global settings > Security Settings Advanced > Client Security, enable SSL warning message
B. Select Access Gateway global settings > Client Experience Advanced > Client Options, deselect SSL warning message
C. Select Access Gateway global settings > Client Experience Advanced > General, deselect SSL warning message
D. The SSL warning message cannot be disabled in the Configuration Utility
Answer: D

NEW QUESTION: 3
An IT team is implementingadisaster recovery solution. A Dell EMC Isilon cluster will replace production data from ma existing primary cluster to a planned secondary cluster. The primary cluster is licensed for SmartLock Enterprise whereas the secondary cluster is not.
A Smartlock enterprise type directory on the primary cluster o planned tor replication SynelQ is used to replicate the data. What is a key considerationwhen replicatingme WORM domain?
A. Files on the primary cluster cannot be committed lo a WORM stale
B. A fallback will cause a second copy ofme data on the primary cluster
C. Secondary cluster must be licensed tor Smartlock Enterprise
D. Retention dates and commit status are lost on the target directory
Answer: D