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NEW QUESTION: 1
Marie Williams, CFA, and David Pacious, CFA, are portfolio managers for Stillwell Managers. Williams and Pacious are attending a conference held by Henri Financial Education on the fundamentals of valuation for common stock, preferred stock, and other assets.
During the conference, the presenter uses an example of four different companies to illustrate the valuation of common stock from the perspective of a minority shareholder.
During the conference, the presenter uses an example of four different companies to illustrate the valuation of common stock from the perspective of a minority shareholder.
* Firm A is a noncyclical consumer products firm with a 50 year history. The firm pays a $1.80 dividend per share and attempts to increase dividends by 4% a year. Earnings and dividends have steadily increased for the past
20 years.
* Firm B is a technology firm. It has never paid a dividend and does not expect to in the near future.
Furthermore, due to large investments in new factories and equipment, the firm is not expected to generate positive free cash flow in the foreseeable future.
* Firm C is an industrial firm with currently very little competition and a dividend growth rate of 9% a year.
However, the profits in its product market have started to attract competitors and it is expected that Firm C's profits will slowly decline such that the dividend growth steadily falls each year until it reaches a growth rate of 4% a year.
* Firm D is a pharmaceutical firm that is currently enjoying high profits and paying dividends. However, the firm's strongest selling drug is coming off patent in three years. With no other drugs in the pipeline, the firm's dividend growth rate is expected to drop abruptly in three years and settle at a lower growth rate.
The next day, Pacious decides to put what he learned into practice. The stock he is valuing, Maple Goods and Services, currently pays a dividend of $3.00. The dividend growth rate is 25% and is expected to steadily decline over the next 8 years to a stable rate of 7% thereafter. Given its risk, Pacious estimates that the required return is 5%.
Williams analyzes the value of Mataka Plastics stock. Its dividend is expected to grow at a rate of 18% for the next four years, after which it will grow at 4%. This year's dividend is $5.00 and Williams estimates the required return at 15%.
From the seminar, Pacious learned that a firm's health can be gauged by the present value of its future investment opportunities (PVGO). Tackling a calculation, he uses the following example for Wood Athletic Supplies:
Stock price $90.00
Current earnings $5.50
Expected earnings $6.00
Required return on stock 15%
Pacious and Williams discuss the characteristics of firms in various stages of growth, where firms experience an initial growth phase, a transitional phase, and a maturity phase in their life. They both agree that the Gordon Growth Model is not always appropriate. Pacious makes the following statements.
Statement I: For firms in the initial growth phase, earnings are rapidly increasing, there are little or no dividends, and there is heavy reinvestment. The return on equity is, however, higher than the required return on the stock, the free cash flows to equity are positive, and the profit margin is high.
Statement 2: When estimating the terminal value in the three-stage dividend growth model, it can be estimated using the Gordon Growth Model or a price-multiple approach.
Which of the following is closest to the current value for Maple Goods and Services stock?
A. $67.13.
B. $15.90.
C. $49.13.
Answer: A
Explanation:
Explanation/Reference:
Explanation:
The firm should be valued using an H dividend discount model given that an initially high rate of growth declines linearly over a specified period. The formula is:
NEW QUESTION: 2
DRAG DROP
Answer:
Explanation:
Topic 4, Proseware, Inc
Background General Background
You are a SharePoint administrator for a media distribution company named Proseware, Inc. Proseware is in the process of upgrading from SharePoint 2010 to SharePoint 2013. The IT group has deployed a new SharePoint 2013 farm. The farm is not yet fully configured.
You are supporting the product development group during the planning and configuration of the new SharePoint farm. The product development group includes the research, development, and marketing teams. The product development group has multiple team sites and project collaborations sites in the current SharePoint 2010 farm.
Business Background
Stakeholders have identified the following initiatives: - ProseWeb, a public website that will allow anonymous visitors to browse the company's product catalog. - PartnerWeb, a public website that will allow authenticated users from partner companies to collaborate on product materials.
- ProductsKB, a centralized repository where teams can publish product-related documents, images, videos, and other information related to the company's product catalog. Information in this site will be consumed by the ProseWeb site.
Technical Background
The company has an Active Directory Domain Services (AD DS) domain named proseware.com. All servers and user accounts are members of the domain. The company has purchased the proseware-apps.com domain to support SharePoint apps.
The SharePoint 2013 farm currently has the following configuration: - The farm includes seven SharePoint servers named SPWEB1, SPWEB2, SPWEB3, SPWEB4, SPADM1, SPAPP1, and SPAPP2. - SPWEB1, SPWEB2, SPWEB3, SPWEB4 and SPADM1 are configured as front-
end web servers. SPADM1 is dedicated for administration purposes. Windows Network Load Balancing has been configured to load balance all host names across the front-end web servers. Central Administration has been provisioned on SPWEB4 and SPADM1. The farm includes two database servers named SQL1 and SQL2 that run Microsoft SQL Server 2012 Enterprise. Wildcard certificates for *.proseware.com and *.proseware-apps.com have been installed on all SharePoint servers. Five web applications have been created: ProseWeb - https://www.proseware.com PartnerWeb - https://partners.proseware.com ProductsKB - https://kb.proseware.com Teams - https://teams.proseware.com Apps - https://proseware-apps.com The SharePoint development team has created a custom web template solution package named ProseWebTemplate.WSP for provisioning the ProseWeb site collection. The package includes a custom template named ProseWeb. An instance of a managed metadata service application has been configured with a content type hub. Two enterprise content types named Product Document and Product Image have been published in the content type hub and are available across all web applications and sites. All team collaboration site collections for the product development group are contained in a single content database named sp_content_teams_productdev. The database has been restored on SQL1, and upgraded by using the database attach method on the Teams web application. The site collections have not been ungraded. All team collaboration site collections for the product development group are referenced under a wildcard managed path at https://teams.proseware.com/productdev.
------------ - - - --
The product development marketing team collaboration site is located at https://
teams.proseware.com/productdev/marketing.
The marketing team has made significant customizations to their team
collaboration site by using Microsoft SharePoint Designer.
-- - - -
Business Requirements
The SharePoint 2013 environment must meet the following business requirements: Due to export and copyright restrictions, SharePoint sites may be accessed only from within North America. The ProseWeb site must display a fixed-width page design for desktop browsers, and a single responsive web design for all mobile devices. The company's web designers have prepared two site templates that meet these requirements. To support the website design layouts, images on the website must be rendered in one of three standard sizes, specified in pixels: Thumbnail (150 x 150), Catalog (300 x 300), and Detail (500 x 500). Users must be able to easily copy product-related documents, images, and other files from any team collaboration site to the ProductsKB site. Metadata on content must be preserved when moving or copying content between sites. The product development group's team collaboration site collections must be upgraded.
Technical Requirements
You have the following technical requirements: SQL Server connections must use TCP and port 1488. Site collection upgrades must be throttled for no more than 20 concurrent upgrades within any content database, and throttled at 10 concurrent upgrades for any web application instance. If a site collection has been customized by using SharePoint Designer: The site collection upgrade must be performed by a farm administrator. All customizations must be evaluated and verified before performing the upgrade. All sandboxed solution code must run on the same server as the original request. Requests originating from outside the company network must not be routed to any server running Central Administration. SPAPP1 and SPAPP2 must not process user requests for site content and pages. You must deploy the custom web template solution as a full-trust farm solution and use the ProseWeb template when creating the root site collection for the ProseWeb web application. The ProductsKB site must be provisioned by using a Records Center site template.
-- ----- -- -
NEW QUESTION: 3
Please wait while the virtual machine loads. Once loaded, you may proceed to the lab section. This may take a few minutes, and the wait time will not be deducted from your overall test time.
When the Next button is available, click it to access the lad section. In this section, you will perform a set of tasks in a live environment. While most functionality will be available to you as it would be in a live environment, some functionality (e.g., copy and paste, ability to navigate to external websites) will not be possible by design.
Scoring is based on the outcome of performing the tasks stated in the lab. In other words, it doesn't matter how you accomplish the task, if you successfully perform it, you will earn credit for that task.
Labs are not timed separately, and this exam may have more than one lab that you must complete. You can use as much time as you would like to complete each lab. But, you should manage your time appropriately to ensure that you are able to complete the lab(s) and all other sections of the exam in the time provided.
Please note that once you submit your work by clicking the Next button within a lab, you will NOT be able to return to the lab.
You may now click next to proceed to the lab.
Use the following login credentials as needed:
To enter your username, place your cursor in the Sign in box and click on the username below.
To enter your password, place your cursor in the Enter password box and click on the password below.
Azure Username: [email protected]
Azure Password: Nq9Md6+!Bj
If the Azure portal does not load successfully in the browser, press CTRL-K to reload the portal in a new browser tab.
The following information is for technical support purposes only:
Lab Instance: 11234828
You need to ensure that all the virtual machines in the resource groups are available in one region during platform updates.
What should you modify?
NOTE: To answer this question, sign in to the Azure portal and explore the Azure resource groups.
A. the replication settings of the storage account
B. the number of fault domains
C. the number of virtual machines in the availability set
D. the number of update domains
Answer: D
Explanation:
Explanation
Update Domain
When you created VMs on the IaaS service model, then Microsoft is not responsible for automatic system updates. You have complete control over that. The planned maintenance event comes in this phase, where we planned for server or virtual machine updating.
Sometimes we need to update some own software, or some updates come from Microsoft due to performance, security, etc. it is not automatically updated your virtual machine, then we need to plane it for updates. So how is that done without taking your service offline? Update Domains.
References:
https://azure.codefari.com/2018/12/what-are-availability-set-fault-domain.html
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