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NEW QUESTION: 1
Interstate Transport has a target capital structure of 50 percent debt and 50 percent common equity. The firm is considering a new independent project which has an IRR of 13 percent and which is not related to transportation. However, a pure play proxy firm has been identified that is exclusively engaged in the new line of business. The proxy firm has a beta of 1.38. Both firms have a marginal tax rate of 40 percent, and Interstate's before-tax cost of debt is 12 percent. The risk-free rate is 10 percent, and the market risk premium is 5 percent. The firm should
A. Reject the project; its IRR is less than the firm's required rate of return on the project of 16.9 percent.
B. Accept the project; its IRR is greater than the firm's required rate of return on the project of 12.05 percent.
C. Reject the project; its IRR is only 13 percent.
D. Be indifferent between accepting or rejecting; the firm's required rate of return on the project equals its expected return.
E. Accept the project; its IRR exceeds the risk-free rate and the before-tax cost of debt.
Answer: B
Explanation:
Explanation/Reference:
Explanation:
Calculate the required return, k(s), and use to calculate the WACC:
k(s) = 10% + 1.38(5%) = 16.9%.
WACC = 0.5(12.0%)(0.6) + 0.5(16.9%) = 12.05%.
Compare expected project return, to WACC:
Accept the project since IRR (13%) is more than the WACC (12.05%).
NEW QUESTION: 2
What is a pallet called when it contains more than one type of product going to a singledestination?
A. mixed pallet
B. transport pallet
C. full pallet
D. secondary pallet
Answer: A
NEW QUESTION: 3
Which statement is true about LDP?
A. LDP uses neither UDP nor TCP.
B. LDP uses only TCP.
C. LDP uses only UDP.
D. LDP uses both UDP and TCP.
Answer: D
NEW QUESTION: 4
お客様は、Gen10サーバーのフロントパネルにアクセスする必要があります。
このニーズを満たすには何が必要ですか？
A. USB 2.0イーサネットアダプター
B. インストールされているiLo Advanceライセンス
C. 2要素認証が有効
D. セキュアブートが有効
Answer: A
Explanation:
Explanation
https://d8tadude.com/2018/03/06/hpe-ilo-service-port/
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