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NEW QUESTION: 1
Refer to the exhibit.

The two standalone chassis are unable to convert into a VSS. What can you do to correct the problem?
A. Add two ports to the port channel group.
B. Set a different port channel number on each chassis.
C. Set the redundancy mode to rpr on both chassis.
D. Set a different virtual domain ID on each chassis.
Answer: B

NEW QUESTION: 2
Which are the three remediation types that cannot be configured in stealth mode posture? (Choose three.)
A. Link remediation
B. File remediation
C. Manual remediation
D. USB remediation
E. Patch management remediation
Answer: A,B,C

NEW QUESTION: 3
Gibson Inc. is considering the following five independent projects:
Project RequiredAmount of CapitalIRR
A$20 0,000 20%
B600,000 15
C400,000 12
D400,000 11
E400,000 10
The company has a target capital structure, which is 40 percent debt and 60 percent equity. The company can issue bonds with a yield to maturity of 11 percent. The company has $600,000 in retained earnings, and the current stock price is $42 per share. The flotation costs associated with issuing new equity are $2 per share. Gibson's earnings are expected to continue to grow at 6 percent per year. Next year's dividend is forecasted to be $4.00. The firm faces a 40 percent tax rate. What is the size of Gibson's capital budget?
A. $200,000
B. $2,000,000
C. $1,200,000
D. $800,000
E. $1,600,000
Answer: D
Explanation:
Explanation/Reference:
Explanation:
The size of Gibson's capital budget will be determined by the number of projects it can profitably undertake, i.e., those projects for which IRR > applicable WACC. First, find the costs of each type of financing: cost of retained earnings = k(s) = $4/$42 + 0.06 = 15.52% and cost of debt = k(d) = 11%. To calculate the cost of new equity, we solve for k(e) = $4/($42-$2) + 0.06 = 0.16 = 16%. Given the firm's target capital structure and its retained earnings balance of $600,000, the firm can raise $1,000,000 with debt and retained earnings before it must use outside equity. Therefore, the WACC for 0 - $1,000,000 of financing = 0.4(0.11)(1 - 0.4) + 0.6(0.1552) = 11.95%. Above $1,000,000, the firm must issue some new equity, so the WACC = 0.4(0.11)(1 - 0.4) + 0.6(0.16) = 12.24%. Obviously, Projects A and B will be undertaken. You must then determine whether Project C will be profitable. Since in taking A and B we will need financing of $800,000, the $400,000 needed for Project C would involve financing $200,000 with debt and retained earnings and $200,000 with debt and new equity. Thus, the WACC for Project C is ($200,000/$400,000) x 0.1195 + ($200,000/$400,000) x 0.1224 = 12.095% which is greater than Project C's IRR. Clearly, only Projects A and B should be accepted, and the firm's capital budget is $800,000.

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