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NEW QUESTION: 1
Which technology is FlexVPN based on?
A. an RSA nonce
B. IKEv2
C. VRF
D. OER
Answer: B
NEW QUESTION: 2
A. Option A
B. Option C
C. Option D
D. Option B
Answer: D
Explanation:
RSTP and STP operate on switches and are based on the exchange of Bridge Protocol Data Units (BPDUs) between switches. One of the most important fields in BPDUs is the Bridge Priority in which the MAC address is used to elect the Root Bridge , RSTP operates at Layer 2. http://www.cisco.com/en/US/tech/tk389/tk621/technologies_white_paper09186a0080094cf a.shtml
NEW QUESTION: 3
Martin Hagemann, CFA, works for a large brokerage firm in Frankfurt, Germany. Hagemann has been hired by Tryssen AG, a global research-based company that is preparing to go public after a long history of operating privately. The need to raise substantial amounts of capital to fund research and development activities is seen as the key motivation for the change in policy. Tryssen is engaged in the discovery, development, manufacture, marketing, and sale of medical products.
Hagemann's first task is to recommend an exchange upon which Tryssen stock can be traded. One possibility is the Deutsche Bourse. The Deutsche Bourse operates primarily as a continuous order-driven system. Another alternative that Tryssen is considering is to list on a different exchange that operates as a price-driven system.
As an alternative, Tryssen may choose to list as an American Depository Receipt (ADR). ADRs are negotiable U.S. securities that usually represent a non-U.S. based company's publicly traded equity.
Although typically denominated in U.S. dollars, depository receipts can also be denominated in euros.
Depository receipts can be eligible to trade on all U.S. stock exchanges as well as on many European stock exchanges.
The increasing demand for depository receipts is driven by the desire of individual and institutional investors to diversify their portfolios, reduce risk and invest internationally in the most efficient manner possible. While most investors recognize the benefits of global diversification, there are many challenges presented when investing directly in local trading markets. Obstacles can include inefficient trade settlements, uncertain custody services, and costly currency conversions. Depository receipts overcome many of the inherent operational and custodial hurdles inherent in international investing. Tryssen has decided to access the U.S. market by involving itself in an ADR program. Tryssen has decided to save itself a lot of trouble, however, by not complying with SEC registration and reporting requirements.
As an alternative to ADRs, investors interested in increasing their exposure to international investments can choose to acquire exchange traded funds (ETFs). Hagemann researches the advantages and disadvantages of ETFs.
Execution costs are always a concern, and perhaps even more so for international investors. At the present time, Tryssen AG is most concerned with how reliably it can estimate trading costs. As part of the cost estimation process, Hagemann is asked to provide a report on the advantages and disadvantages of techniques used to reduce execution costs.
Trysse AG proceeds to list on the Frankfurt exchange, and a U.S. affiliate of Hagemann's company starts to aggressively promote the stock. A U.S. investor buys 200 shares of Tryssen at a price of €20 per share.
At time of purchase, the exchange rate is €1 = $1.15. One month later Tryssen pays a dividend of €0.25 per share, and investors are subject to a withholding tax of 20%. The U.S. investor is eligible to claim a tax credit of $0.06 per share. At the time the dividend was paid, the shares had jumped to €24 each and the
U.S. dollar had weakened to €1 = $ 1.20. The shares were sold just after the dividend was paid.
The capital gain for the U.S. investor in Tryssen stock and the dividend after adjusting for the withholding tax but before the tax credit are closest to:
Capital gain and Adjusted dividend are:
A. $720 and $48
B. $1,160 and $48
C. $1,160 and $60
Answer: B
Explanation:
Explanation/Reference:
Explanation:
$ paid = number of shares x price paid in euros x exchange rate $/€
=200 x €20 K $1.15/6- $4,600
$ received = 200 x €24 x $1.20/6 = $5,760
Capital gain = $5,760 - $4,600 = $1,160
Adjusted dividend = number of shares x dividend in euros x exchange rate
$/€ x (1 - withholding tax)
=. 200 €0.25 x $ 1.20/6 x (1 - 0.2) = $48.
(Study Session 10, LOS 34.c)
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