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NEW QUESTION: 1
A company has an EBIT of $4 million, and its degree of total leverage is 2.4. The firm's debt consists of
$20 million in bonds with a 10 percent yield to maturity. The company is considering a new production process that will require an increase in fixed costs but a decrease in variable costs. If adopted, the new process will result in a degree of operating leverage of 1.4. The president wants to keep the degree of total leverage at 2.4. If EBIT remains at $4 million, what amount of bonds must be outstanding to accomplish this (assuming the yield to maturity remains at 10 percent)?
A. $18.5 million
B. $19.8 million
C. $19.2 million
D. $20.1 million
E. $16.7 million
Answer: E
Explanation:
Explanation/Reference:
Explanation:
First, find the new DFL:
DTL = (DOL)(DFL)
2.4 = (1.4)(DFL)
DFL = 1.7143.
Then, find the new interest payments in a year:
DFL = (EBIT)/(EBIT - I)
1.7143 = ($4,000,000)/($4,000,000 - I)
I = $1,666,686.11.
Finally, solve for the new debt level, knowing that the yield to maturity remains at 10%. Debt Value(YTM) = Interest Payment Debt(0.10) = $1,666,686.11
Debt = $16,666,861.11 = $16.7 million.

NEW QUESTION: 2
Refer to the exhibit. Host B has just been added to the network and must acquire an IP address.
Which two addresses are possible addresses that will allow host B to communicate with other devices in the network? (Choose two.)

A. 192.168.10.32
B. 192.168.10.38
C. 192.168.10.49
D. 192.168.10.51
E. 192.168.10.47
F. 192.168.10.46
Answer: B,F
Explanation:
The IP address of host B must be in the range of 192.168.10.32/28 subnet, which ranges from
192.168.10.32 to 192.168.10.47 (Increment: 16), except the IP addresses of 192.168.10.32,
192.168.10.46 (which are the network and broadcast addresses of the subnet), 192.168.10.33,
192.168.10.34 (which have been assigned to the interface's router and the switch). Therefore there are only two IP addresses of 192.168.10.38 & 192.168.10.46.

NEW QUESTION: 3
SONET's three layers arE. (Choose three.)
A. DS1
B. Section
C. Path
D. Frame
E. Line
Answer: B,C,E
Explanation:
SONET Layers
SONET divides the overhead and transport functions into three layers:
*Section
*Line
*Path
These three layers are associated with both the physical equipment that segments the network and the bytes of information that flows through the network elements.