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NEW QUESTION: 1
A. Option B
B. Option C
C. Option D
D. Option A
Answer: D
NEW QUESTION: 2
A network engineer is configuring an OSPFv2 neighbor adjacency Drag and drop the parameters from the left onto their required categories on the right. Not all parameters are used
Answer:
Explanation:
NEW QUESTION: 3
You have two data sets. One data set contains customer name and age information along with a customer ID. The second data set contains the customer ID along with address information. There are no addresses which do not belong to a customer, there are customers which have no address, and there are customers which have multiple addresses.
Which type of join will display all customers who have no recorded address?
A. Outer join
B. Partial outer join
C. Inner join
D. Anti-join
Answer: B
NEW QUESTION: 4
General Investments is considering the purchase of a significant stake in Pacific Computer Components (PCC). Although PCC has stable production output, the company is located in a developing country with an uncertain economic environment. Since the monetary environment is particularly worrisome. General has decided to approach the valuation of PCC from a free cash flow model using real growth rates. In real rate analysis, General uses a modified build-up method for calculating the required real return, specifically:
required real return = country real rate + industry adjustment +
company adjustment
Elias Sando, CFA, an analyst with General, estimates the following information for PCC:
Domestic inflation rate = 8.738%
Nominal growth rate = 12.000%
Real country return = 3.000%
Industry adjustmen = 3.000%
Company adjustment = 2.000%
Additionally, Exhibit 1 reports information from PCC's financial statements for the year just ended (stated in LC).
PCC generally maintains relatively constant proportions of equity and debt financing and is expected to do so going forward.
Sando has gathered information on earnings before interest, taxes, depreciation, and amortization (EBITDA) and is contemplating its direct use in another cash flow approach aimed at valuing PCC.
Consider the following two statements regarding EBITDA:
Statement 1: EBITDA is not a good proxy for free cash flow to the firm (FCFF) because it does not incorporate the importance of the depreciation tax shield nor does it reflect the investment in working capital or in fixed capital.
Statement 2: EBITDA is also a poor proxy for FCFE.
The current value of PCC equity using a FCFE model is closest to:
A. LCI50,380,000.
B. LCI73,420,000.
C. LC215,150,000.
Answer: A
Explanation:
Explanation/Reference:
Explanation:
Given the assumptions stated in the problem, this is a simple single stage valuation. Using the firm's modified build-up methodology, the real required rate of return is 8% (= country real rate + industry adjustment + firm adjustment = 3% + 3% + 2%).
The real growth rate is
= 3%. FCFE is LC7.3000.000 from Question 61.
Hence, the value of PCC equity is:
(Study Session 12, LOS 4l.k)
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