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NEW QUESTION: 1
Dandy Product's overall weighted average required rate of return is 10 percent. Its yogurt division is riskier than average, its fresh produce division has average risk, and its institutional foods division has below- average risk. Dandy adjusts for both divisional and project risk by adding or subtracting 2 percentage points. Thus, the maximum adjustment is 4 percentage points. What is the risk-adjusted required rate of return for a low-risk project in the yogurt division?
A. 14%
B. 6%
C. 8%
D. 10%
E. 12%
Answer: D
Explanation:
Explanation/Reference:
Explanation:
k(YD) = 10% + 2% = 12%.
However, for a low-risk project, Dandy Product subtracts 2 percentage points. Therefore, the required rate of return is 10 percent.
k(YD,Low risk project) = 10% + 2% - 2% = 10%.
NEW QUESTION: 2
HOTSPOT
Your network contains a server named Server1 that has the web Server (HS) server role installed. The network contains a computer named Computer1 that runs Windows 7. Computer1 has the Remote Server Administration Tools (RSAT) installed.
You need to ensure that you can administer Server1 from Computer1 by using Internet Information Services (IIS) Manager.
The solution must minimize the number of roles services installed on Server1.
What should you install on Server1?
To answer, select the appropriate role service or role services from the Add Role Services dialog box in the answer area.
Answer:
Explanation:
NEW QUESTION: 3
In mid-September, the stock of Amazon.com, Inc. (AMZN) is selling for $147.A January call option on the stock is selling for $6.10 and has a strike price of $160. This call option is:
A. out of the money.
B. at the money.
C. overpriced. No one should pay $6.10 for the right to buy a share of stock for $160 when its current market price is only $147.
D. in the money.
Answer: A
Explanation:
Explanation/Reference:
Explanation: If Amazon.com is selling for $147 and the strike price on the option is $160, the call option is said to be out of the money since, even if an investor were given the option free, he would not benefit from exercising it at this time. If he did so, he would be paying $160 for a stock that is selling for only $147 on the open market. Even so, the option is not necessarily overpriced at $6.10 because the option has what is known as "time value" on it. The stock of Amazon.com has several months during which it could rise well above the $160 strike price on the option.
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