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A. shortest-path and weighting
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C. host-dependent
D. vmac-weighted
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NEW QUESTION: 3
In order to recognize the practical aspects of multilevel security in
which, for example, an unclassified paragraph in a Secret document has
to be moved to an Unclassified document, the Bell-LaPadula model
introduces the concept of a:
A. Simple security property
B. Data flow
C. Trusted subject
D. Secure exchange
Answer: C
Explanation:
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NEW QUESTION: 4
Given the following estimated financial results, value the stock of Magic Holdings, Inc. using the infinite period dividend discount model (DDM).
Which of the following choices is closest to the value of Magic Holding Inc. stock? (Note: Carry calculations out to at least 3 decimals.)
A. $109.27.
B. $23.54.
C. Unable to calculate stock value because ke < g.
D. $44.64.
Answer: A
Explanation:
Explanation/Reference:
Explanation:
Here, we are given all the inputs we need. Use the following steps to calculate the value of the stock:
First, expand the infinite period DDM:
DDMformula: P0= D1/ (ke- g)
D1
= (Earnings * Payout ratio) / average number of shares outstanding
= ($200,000 * 0.625) / 50,000 = $2.50.
ke
= nominal risk free rate + [beta * (expected market return - nominal risk free rate)] Note: Nominal risk-free rate = (1 + real risk free rate) * (1 + expected inflation) - 1
=(1.035)*(1.040) - 1 = 0.0764, or 7.64%.
ke
= 7.64% + [1.8 * (13.0% - 7.64%)] = 0.17288.
g
= (retention rate * ROE)
Retention = (1 - Payout) = 1 - 0.625 = 0.375.
ROE = (net income/sales)*(sales/total assets)*(total assets/equity)
= (200,000/1,000,000)*(1,000,000/750,000)*(750,000/500,000) = 0.40
g
= 0.375 * 0.40 = 0.15.
Then, calculate:P0= D1/ (ke- g) = $2.50 / (0.17288 - 0.15) = 109.27.
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