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NEW QUESTION: 1
Clay Industries, a large industrial firm, is examining its capital structure. The firm is financed according to the following schedule based on market values:
50% debt
40% common stock
10% perpetual preferred stock
Additionally, consider the following information:
Yield on outstanding debt: 8.50%
Tax rate: 35%
Annual preferred dividend: $2.55
Preferred stock price: $25.97
Return on equity: 16.75%
Dividend payout ratio: 50%
Cost of common stock: 14.25%
Using this information, what is the Weighted Average Cost of Capital for Clay Industries?
A. 9.37%
B. 9.25%
C. None of these answers
D. 9.45%
E. 9.37%
F. 8.97%
Answer: D
Explanation:
Explanation/Reference:
Explanation:
In order to calculate the WACC, it is necessary to first calculate the component after-tax cost of debt, common equity, and preferred equity. Once the cost of these components is determined, they are imputed into the WACC equation, which is as follows:
{WACC = [(% weight of debt securities * cost of debt) + (% weight of common stock * cost of common stock) + (% weight of preferred stock * cost of preferred stock)]} To calculate the component cost of debt, use the following equation:
{After-tax cost of debt = [yield on outstanding debt securities * (1 - tax rate)} Factoring in the given information into this equation would yield the following:
{After-tax cost of debt = [8.50% * (1 - 0.35%)]} = 5.525%
To calculate the component cost of outstanding preferred stock, the following equation must be used:
{Cost of preferred stock = [annual dividend / preferred stock price]}
{Cost of preferred stock - = [$2.55 / $25.97]} = 9.82%.
The final component of the WACC calculation, the cost of common equity, has been provided as 14.25%.
Now that the after-tax cost of debt, preferred stock, and common stock have been determined, the WACC calculation can be found. The calculation of the WACC is as follows:
{[0.50 * 0.05525] + [0.40 * 0.1425] + [0.10 * 0.0982]} = 9.445%

NEW QUESTION: 2
You need to authenticate the user to the corporate website as indicated by the architectural diagram.
Which two values should you use? Each correct answer presents part of the solution.
NOTE: Each correct selection is worth one point.
A. ID token signature
B. HTTP response code
C. Azure AD endpoint URI
D. Azure AD tenant ID
E. ID token claims
Answer: A,C
Explanation:
Explanation
Claims in access tokens
JWTs (JSON Web Tokens) are split into three pieces:
* Header - Provides information about how to validate the token including information about the type of token and how it was signed.
* Payload - Contains all of the important data about the user or app that is attempting to call your service.
* Signature - Is the raw material used to validate the token.
Your client can get an access token from either the v1.0 endpoint or the v2.0 endpoint using a variety of protocols.
Scenario: User authentication (see step 5 below)
The following steps detail the user authentication process:
* The user selects Sign in in the website.
* The browser redirects the user to the Azure Active Directory (Azure AD) sign in page.
* The user signs in.
* Azure AD redirects the user's session back to the web application. The URL includes an access token.
* The web application calls an API and includes the access token in the authentication header. The application ID is sent as the audience ('aud') claim in the access token.
* The back-end API validates the access token.
Reference:
https://docs.microsoft.com/en-us/azure/api-management/api-management-access-restriction-policies

NEW QUESTION: 3
DRAG DROP


Answer:
Explanation: