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Exam Code: L6M7
Exam Name: Commercial Data Management
Vendor: CIPS

60 Questions & Answers
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NEW QUESTION: 1
Which encapsulation type is a Frame Relay encapsulation type that is supported by Cisco routers?
A. HDLC
B. IETF
C. Q9333-A Annex A
D. ANSI Annex D
Answer: B
Explanation:
Explanation Cisco supports two Frame Relay encapsulation types: the Cisco encapsulation and the IETF Frame Relay encapsulation, which is in conformance with RFC 1490 and RFC 2427. The former is often used to connect two Cisco routers while the latter is used to connect a Cisco router to a non-Cisco router. You can test with your Cisco router when typing the command Router(config-if)#encapsulation frame-relay ? on a WAN link. Below is the output of this command (notice Cisco is the default encapsulation so it is not listed here, just press Enter to use it).

Note: Three LMI options are supported by Cisco routers are ansi, Cisco, and Q933a. They
represent the ANSI Annex D, Cisco, and ITU Q933-A (Annex A) LMI types, respectively. HDLC is a WAN protocol same as Frame-Relay and PPP so it is not a Frame Relay encapsulation type.

NEW QUESTION: 2
Which network is used by default for cluster sync between Cisco APICs?
A. in-band management network
B. out-of-band management network
C. infra-VTEP network
D. VXLAN overlay network
Answer: D

NEW QUESTION: 3
A company currently sells 75,000 units annually. At this sales level, its EBIT is $4 million, and its degree of total leverage is 2.0. The firm's debt consists of $15 million in bonds with a 9.5 percent coupon. The company is considering a new production method which will entail an increase in fixed costs but adecrease in variable costs, and will result in a degree of operating leverage of 1.6. The president, who is concerned about the stand-alone risk of the firm, wants to keep the degree of total leverage at 2.0. If EBIT remains at
$4 million, what amount of bonds must be retired to accomplish this?
A. $9.19 million
B. $8.42 million
C. $6.58 million
D. $4.44 million
E. $7.63 million
Answer: C
Explanation:
Explanation/Reference:
Explanation:
DTL = (DOL)(DFL)
2.0 = 1.6(DFL)
1.25 = DFL.
1.25 = $4,000,000/($4,000,000-I)
$5,000,000 - 1.25(I) = $4,000,000
I = $800,000.
Debt = $800,000/.095 = $8,421,053.
Must retire = $15,000,000 - $8,421,053 = $6.58 million of debt.


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