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NEW QUESTION: 1
Which of the following statements is correct?
A. Normally, the cost of external equity raised by issuing new common stock is above the cost of retained earnings. Moreover, the higher the growth rate is relative to the dividend yield, the more the cost of external equity will exceed the cost of retained earnings.
B. If a firm has been suffering accounting losses and is expected to continue suffering such losses, and therefore its tax rate is zero. It is possible that its after-tax component cost of preferred stock as used to calculate the WACC will be less than its after-tax component cost of debt.
C. Due to the way the MCC (Marginal Cost of Capital) is constructed, the first break point in the MCC schedule must be associated with using up all available retained earnings and having to issue common stock.
D. The lower a company's tax rate, the greater the advantage of using debt in terms of lowering its WACC.
E. Because we often need to make comparisons among firms that are in different income tax brackets, it is best to calculate the WACC (Weighted Average Cost of Capital) on a before-tax basis.
Answer: B
Explanation:
Explanation/Reference:
Explanation:
Because corporations can exclude dividends for tax purposes, preferred stock often has a market return that is less than the issuing company's cost of debt. Then, if the issuer's tax rate is zero, its component cost of preferred would be less than its cost of debt.

NEW QUESTION: 2
Which scheduling option sets the number of tasks that can be run?
A. max changes
B. max number of concurrent tasks
C. max configuration requests
D. max number of tasks
Answer: D

NEW QUESTION: 3
Consider the following scenario in a vSAN cluster that contains six hosts:
* All virtual machines are assigned the vSAN Default Storage Policy, which has not been modified.
* Deduplication and compression are not enabled.
* Every vSAN disk group in the cluster contains one cache device and five capacity devices What happens when a capacity devices transmits SCSI sense code errors and fails?
A. All components on the affected device are marked "offline". vSAN attempts to rebuild the components on other healthy devices in the cluster after 60 minutes by default.
B. The host containing the affected device is placed into maintenance mode using the "ensure accessibility" option. An administrator must log into the vSphere Web Client and click Repair Objects immediately.
C. All components on the affected device are marked "degraded". The host containing the affected drive is placed into maintenance mode using the 'ensure accessibility' option.
D. All components on the affected device are marked "degraded". vSAN attempts to rebuild the components on other healthy devices in the cluster without delay.
Answer: D