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NEW QUESTION: 1
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. $4.44 million
C. $6.58 million
D. $7.63 million
E. $8.42 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.

NEW QUESTION: 2
An administrator is virtualizing a physical application server and adding it to an existing multi-tiered vApp. The application license is currently tied to the physical NIC's MAC address, so the administrator needs to ensure the license will function properly in the virtual machine.
Which two actions can the administrator take to satisfy this task? (Choose two.)
A. Configure the MAC address for the vNIC using the vSphere Web Client.
B. Assign the physical server NIC's MAC address in the vSphere Distributed Switch.
C. Install the physical server's NIC into the ESXi host.
D. Set the MAC address for the vNIC in the guest operating system.
Answer: A,D

NEW QUESTION: 3
Given the code fragment:

Test.java

Which is the result?
A: Compilation fails in the Employee class.
B:

C:

D: Compilation fails in the Test class.
E: Both the Employee class and the test class fail to compile.
A. Option D
B. Option B
C. Option C
D. Option E
E. Option A
Answer: D