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NEW QUESTION: 1
.When performing an IS strategy audit, an IS auditor should review both short-term (one-year) and long-term (three-to five-year) IS strategies, interview appropriate corporate management personnel, and ensure that the external environment has been considered. The auditor should especially focus on procedures in an audit of IS strategy. True or false?
A. False
B. True
Answer: A
Explanation:
When performing an IS strategy audit, an IS auditor should review both short-term (one-year) and long-term (three-to five-year) IS strategies, interview appropriate corporate management personnel, and ensure that the external environment has been considered.

NEW QUESTION: 2
A Solution Architect is designing a deployment strategy for an application tier and gas the following requirements.
* The application code will need a 500 HB static dataset to be present before application startup.
* The application tier be able to scale Up and down based on demand with as little startup time as possible.
* The development team should be able to update the code multiple times each day.
* Critical operating system (OS) patches must be installed within 48 hours of being released.
Which deployment strategy meets these requirements?
A. Use an Amazon provided AMI for the OS Configure an Auto Scaling group set to a static instance count. Configure an Amazon EC2 data script to download the data from Amazon S3 install OS patches with AWS system Manager when they are released. Use Codedeploy to push the application code to the instances.
B. Use AWS System Manager to create a new AMI with upload OS patches. Update the Auto Scaling group to use the patches AMI and replace existing unpatches and the application code as a batch job every night. Store the static data in Amazon EFS.
C. Use an Amazon provided AMI for the OS Configure an Auto Scaling group Configure an Amazon EC2 user data script to download the data from Amazon S3. Replace existing instances after each Amazon-provided AMI release. Use AWS CodeDeploy to push the application code to the instances.
D. Use AWS Manager to create a new AMI with the updated OS patches . Update the Auto Scaling group to use the patches AMI and replace existing unpatched. Use AWS CodeDeploy to push the application code to the instances. Store the static data in Amazon EFS.
Answer: A

NEW QUESTION: 3
Zi Wang is a senior buy-side equity analyst with Shandong Securities. Wang must review the work of several of his junior colleagues before investment recommendations go to the Shandong portfolio managers. One recommendation from a junior analyst is given in Exhibit 1.

This same junior analyst e-mailed Wang, saying "I'm in a meeting and hate to bother you. I don't have my calculator or computer with me. We have a British stock with a current £4.00 dividend that is expected to grow at 40% per year for two years and then forever after at 6%, If we assume a required return of 12%, what is the value of this stock?" in a few minutes, Wang e-mails him back: "The British stock is worth £110.42" The junior analyst sends back a second e-mail. "Thanks. If we can buy this stock for £90, what rate of return would we get? Assume the same dividend pattern as in my first e-mail." Wang replies to the second e-mail: "I used trial and error and found an expected rate of return for the British stock of 12%." One of Shandong's portfolio managers asks Wang to clarify the PVGO (present value of growth opportunities) concept for him. Wang tells him, "PVGO is the part of a stock's total value that comes from future growth opportunities. PVGO is conventionally estimated as the market value per share minus the book value per share." The Shandong portfolio manager quickly follows up with two more requests. He says, "I need a couple of favors. First, could you describe the sustainable growth rate concept for us? We've been arguing about it among ourselves. And, second, could you review some highlighted phrases from a research report we received from one of our investment bankers? We aren't sure that the analyst who wrote this report is very competent." The highlighted phrases are:
Phrase 1: When calculating the justified P/E ratios based on a constant growth model like the Gordon model, the forward P/E should be greater than the trailing P/E.
Phrase 2: A free cash flow approach might be preferable when the company's cash flows differ substantially from dividends or the investor takes a control perspective.
Phrase 3: When the required rate of return increases, the value of a share of stock should decrease even if the stock's dividend has a negative growth rate.
Is Wang's description of PVGO most likely correct?
A. No. PVGO is the difference between the price and the value of. assets in place. The value of assets in place is estimated by dividing dividends per share by the required rate of return.
B. No. PVGO is the difference between the price and the value of assets in place. The value of assets in place is estimated by dividing earnings per share by the required rate of return.
C. Yes.
Answer: B
Explanation:
Explanation/Reference:
Explanation:
PVGO is the part of a stock's total value that comes from future growth opportunities. It is estimated as = /r
+ PVGO, where /r is the no-growth value per share. Note that earnings are divided by r, not dividends. The reason for this is that a no-growth firm should distribute all of its earnings as dividends. (Study Session 11, LOS 40.f)