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NEW QUESTION: 1
You negotiate product-specific pricing with a customer for two products.
You need to create a sales price trade agreement for the customer that includes the two products.
Which three actions should you perform? Each answer represents part of the solution.
A. Select an account code of Group.
B. Create a trade agreement journal.
C. Select a relation of line discount (sales.)
D. Validate and post the journal.
E. Enter the journal lines for each product.
Answer: B,D,E
NEW QUESTION: 2
Gulf Electric Company (GEC) uses only debt and equity in its capital structure. It can borrow unlimited amounts at an interest rate of 10 percent so long as it finances at its target capital structure, which calls for
55 percent debt and 45 percent common equity. Its last dividend was $2.20; its expected constant growth rate is 6 percent; its stock sells on the NYSE at a price of $35; and new stock would net the company $30 per share after flotation costs. GEC's tax rate is 40 percent, and it expects to have $100 million of retained earnings this year. GEC has two projects available: Project A has a cost of $200 million and a rate of return of 13 percent, while Project B has a cost of $125 million and a rate of return of 10 percent. All of the company's potential projects are equally risky. What is GEC's cost of equity from newly issued stock?
A. 12.29%
B. 13.77%
C. 13.33%
D. 12.66%
E. 10.00%
Answer: B
Explanation:
Explanation/Reference:
Explanation:
k(d) (interest rate on the firm's new debt) = 10%
k(d)(1 - T) (after-tax-component cost of the debt) = 10%(0.6) = 6%.
D/A = 55%; D0 = $2.20; g = 6%; P0 = $35; PN = $35; T = 40%.
Retained earnings = $100M; BP(RE) = $100M/ .45 = $222.22M.
k(s) (component cost of retained earnings) = $2.33/$35 + 6% = 12.66%.
k(e) (component cost of external equity) = $2.33/$30 + 6% = 13.77%.
NEW QUESTION: 3
Identify two true statements about the native data load file format.
A. The Group section defines the POV for the data file; you can define only a single member for each POV dimension.
B. The default column order for the native data file is Scenario, Year, Period, View, Entity, Value, Account, ICP, Custom1, Custom2, Custom3, and Custom4.
C. The Group section is required.
D. You cannot change the column order for the data file.
E. The Line Items detail section contains data values.
Answer: B,E
NEW QUESTION: 4
Which of the following activities would not be included in the contingency planning process phase?
A. Development of test procedures
B. Development of recovery scenarios
C. Assessment of threat impact on the organization
D. Prioritization of applications
Answer: A
Explanation:
All of the answers except Development of test procedures would all be part of the
contingency planning phase.
Risk management minimizes loss to information assets due to undesirable events through
identification, measurement, and control. It encompasses the overall security review, risk analysis,
selection and evaluation of safeguards, cost-benefit analysis, management decision, and
safeguard identification and implementation, along with ongoing effectiveness review.
In many organizations, contingency planning is a necessity that has turned out to be beneficial in
more ways than ever expected. Contingency planning helps to ensure an organization's viability
during and following a disaster.
Another benefit of contingency planning is significant improvements in the daily operations of
many organizations. Researching and documenting contingency plans can discover numerous
single points of failure (SPOF). A SPOF is any single input to a process that, if missing, would
cause the process or several processes to be unable to function. Once identified, these SPOFs
can often easily be eliminated or have their damaging potential reduced.
Many organizations have also witnessed process improvements as a direct result of their
contingency planning efforts, particularly while exercising their DR and BCPs.
The following answers are incorrect as they are all part of Contengency Planning:
prioritization of apps = asset valuation
assessment of threat impact = threat modeling
development of recovery scenarios = risk mitigation
The following reference(s) were/was used to create this question:
Hernandez CISSP, Steven (2012-12-21). Official (ISC)2 Guide to the CISSP CBK, Third Edition
((ISC)2 Press) (Kindle Locations 8882-8884). Auerbach Publications. Kindle Edition.
and
Hernandez CISSP, Steven (2012-12-21). Official (ISC)2 Guide to the CISSP CBK, Third Edition
((ISC)2 Press) (Kindle Locations 20749-20756). Auerbach Publications. Kindle Edition.
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