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Exam Name: SAP Certified Associate - Design Thinking
Certification: SAP Certified Associate
Total Questions: 62 Q&As
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NEW QUESTION: 1
The key difference between the "Degraded" status and the "Critical" status is:
A. With degraded, only one alarm has been triggered, whereas with critical, two or more alarms were triggered
B. With degraded, there is no optimization due to a software problem, whereas with critical there is no optimization due to a hardware problem
C. With both degraded and critical, optimization functions as normal however administrator attention is required
D. With degraded, the Steelhead appliance is still optimizing traffic, whereas with critical the Steelhead may or may not be optimizing
NEW QUESTION: 2
NEW QUESTION: 3
NEW QUESTION: 4
J. Ross and Sons Inc. has a target capital structure that calls for 40 percent debt, 10 percent preferred stock, and 50 percent common equity. The firm's current after-tax cost of debt is 6 percent, and it can sell as much debt as it wishes at this rate. The firm's preferred stock currently sells for $90 a share and pays a dividend of $10 per share; however, the firm will net only $80 per share from the sale of new preferred stock. Ross expects to retain $15,000 in earnings over the next year. Ross' common stock currently sells for $40 per share, but the firm will net only $34 per share from the sale of new common stock. The firm recently paid a dividend of $2 per share on its common stock, and investors expect the dividend to grow indefinitely at a constant rate of 10 percent per year. What will be the WACC above the break point?
Preferred stock return: 10/80 = 12.5% WACC = 6%(0.40) + 12.5%(0.10) + 16.5%(0.50) = 11.90%.