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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. $321 million
B. $59 million
C. $131 million
D. $81 million
Answer: D
NEW QUESTION: 2
Which two options are principles of the Cisco business outcomes sale? (Choose two.)
A. Initiate the conversation stating the competitive advantages of the Cisco solutions.
B. Define outcomes which are time-bound.
C. Always provide as much technical detail as you can.
D. Evolve to an outcome approach; as customers require, use product and solution selling.
Answer: B,D
NEW QUESTION: 3
Which command enables more space for the database?
A. define dbvol
B. extend dbspace
C. dsmserv format volume
D. expand dbspace
Answer: B