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NEW QUESTION: 1
The following facts apply to your company:
Target capital structure: 50% debt; 50% equity.
EBIT:$200 million
Assets:$500 million
Tax rate:40%
Cost of new and old debt:8%
Based on the residual dividend policy, the payout ratio is 60 percent. How large (in millions of dollars) will the capital budget be?
A. $86.4
B. $64.8
C. $108.0
D. $43.2
E. $50.0
Answer: A
Explanation:
Explanation/Reference:
Explanation:
Debt = 0.5(Assets) = 0.5($500) = $250 million.
Interest = 0.08($250) = $20 million.
EBT = EBIT - I = $200 - $20 = $180.
NI = $180 - Taxes = $180 - $180(0.4) = 0.6($180) = $108 million.
Dividends = $108(0.6) = $64.80 million.
Retained earnings = NI - D = $108.00 - $64.80 = $43.20 million.
Half of the capital budget will be debt, half will be common equity from retained earnings, so the capital budget will = $86.40 million.
NEW QUESTION: 2
Which of the following describes a computer processing architecture in which a language compiler or pre-processor breaks program instructions down into basic operations that can be performed by the processor at the same time?
A. Super Scalar Processor Architecture (SCPA)
B. Complex-Instruction-Set-Computer (CISC)
C. Very-Long Instruction-Word Processor (VLIW)
D. Reduced-Instruction-Set-Computer (RISC)
Answer: C
Explanation:
Very long instruction word (VLIW) describes a computer processing architecture in which a language compiler or pre-processor breaks program instruction down into basic operations that can be performed by the processor in parallel (that is, at the same time). These operations are put into a very long instruction word which the processor can then take apart without further analysis, handing each operation to an appropriate functional unit.
The following answer are incorrect:
The term "CISC" (complex instruction set computer or computing) refers to computers designed with a full set of computer instructions that were intended to provide needed capabilities in the most efficient way. Later, it was discovered that, by reducing the full set to only the most frequently used instructions, the computer would get more work done in a shorter amount of time for most applications. Intel's Pentium microprocessors are CISC microprocessors.
The PowerPC microprocessor, used in IBM's RISC System/6000 workstation and
Macintosh computers, is a RISC microprocessor. RISC takes each of the longer, more complex instructions from a CISC design and reduces it to multiple instructions that are shorter and faster to process. RISC technology has been a staple of mobile devices for decades, but it is now finally poised to take on a serious role in data center servers and server virtualization. The latest RISC processors support virtualization and will change the way computing resources scale to meet workload demands.
A superscalar CPU architecture implements a form of parallelism called instruction level parallelism within a single processor. It therefore allows faster CPU throughput than would otherwise be possible at a given clock rate. A superscalar processor executes more than one instruction during a clock cycle by simultaneously dispatching multiple instructions to redundant functional units on the processor. Each functional unit is not a separate CPU core but an execution resource within a single CPU such as an arithmetic logic unit, a bit shifter, or a multiplier.
Reference(s) Used for this question:
http://whatis.techtarget.com/definition/0,,sid9_gci214395,00.html
and
http://searchcio-midmarket.techtarget.com/definition/CISC
and
http://en.wikipedia.org/wiki/Superscalar
NEW QUESTION: 3
You are the accounts receivable manager for your company.
You need to set up a new customer as soon as possible. You add the customer's name and address, contact information, their bank information, and all delivery information.
What information is required before you can save the customer?
A. credit limit
B. terms of payment
C. customer group
D. sales tax group
Answer: C