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NEW QUESTION: 1
RFG is considering a major expansion that will result in a more diversified business model.
At present, RFG's market capitalisation is $240 million. This is based on a beta of 1.6. The risk free rate is 4% and the market rate of return is 9%. RFG is financed entirely by equity. The company generates an annual cash surplus of $28.8 million.
The expansion will cost $50 million and will generate future cash flows of $12 million in perpetuity. This new business will reduce RFG's beta to 1.4.
Calculate the adjusted present value of the expansion.
A. $131 million
B. $321 million
C. $81 million
D. $59 million
Answer: C
NEW QUESTION: 2
Which two options are principles of the Cisco business outcomes sale? (Choose two.)
A. Always provide as much technical detail as you can.
B. Initiate the conversation stating the competitive advantages of the Cisco solutions.
C. Evolve to an outcome approach; as customers require, use product and solution selling.
D. Define outcomes which are time-bound.
Answer: C,D
NEW QUESTION: 3
Which command enables more space for the database?
A. extend dbspace
B. expand dbspace
C. define dbvol
D. dsmserv format volume
Answer: A