Exam Code: JN0-637
Exam Name: Security, Professional (JNCIP-SEC)
Version: V13.25
Q & A: 72 Questions and Answers
JN0-637 Free Demo download
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NEW QUESTION: 1
Which command is used to set the NSX Manager's logging-level to debug mode for troubleshooting?
A. set service manager log-level debug
B. set service nsx-manager log-level debug
C. set service nsx-manager logging-level debug
D. set service manager logging-level debug
Answer: A
NEW QUESTION: 2
Depending on complete automation, the cloud computing services can scale out quickly but not scale in.
A. FALSEs
B. TRUE
Answer: A
NEW QUESTION: 3
When creating a dvPort group, which port binding option assigns a port to a virtual machine when the virtual machine is first powered on?
A. Static binding
B. Dynamic binding
C. Ephemeral
D. Flexible
Answer: B
NEW QUESTION: 4
Emily De Jong, CFA, works for Charles & Williams Associates, a medium-sized investment firm operating in the northeastern United States. Emily is responsible for producing financial reports to use as tools to attract new clients. It is now early in 2009, and Emily is reviewing information for O'Connor Textiles and finalizing a report that will be used for an important presentation to a potential investor at the end of the week.
Following an acquisition of a major competitor in 1992, O'Connor went public in 1993 and paid its first dividend in 1999. Dividends are paid at the end of the year. After 2008, dividends are expected to grow for three years at 11%: $2.13 in 2009, $2.36 in 2010, and $2.63 in 2011. The average of the arithmetic and compound growth rates are given in Exhibit 1. Dividends are then expected to settle down to a long-term growth rate of 4%. O'Connor's current share price of $70 is expected to rise to $72.92 by the end of the year according to the consensus of analysts' forecasts.
O'Connor's annual dividend history is shown in Exhibit 1.
De Jong is also considering whether or not she should value O'Connor using a free cash flow model instead of the dividend discount model.
The output from the regression appears in Exhibit 2.
De Jong determines that employing the CAPM to estimate the required return on equity suffers from the following sources of error:
* Estimation of the model's inputs (e.g., the market risk premium). The company's dividend payment schedule.
* The accuracy of the beta estimate.
* Whether or not the model is the appropriate one to use.
De Jong observes that two reputable statistical analysis firms estimate betas for O'Connor stock at 0.85 and 1.10. She concludes that the differences between her beta estimate and the published estimates resulted from her use of standard errors in her regression to correct for serial correlation; the other firms did not make a similar adjustment.
De Jong considers using adjusted beta in her analysis. Typically, her company uses 1/3 for the value of .
She determines
that her adjusted beta forecast will be closer to the mean reverting level using this value than it would be using a value of 1/3.
In what situation is it most appropriate for De Jong to employ a:
Dividend discount model? FCFE model?
A. Control perspective ;FCFE aligned with profitability
B. Non-control perspective ;FCFE aligned with profitability
C. Non-control perspective ;FCFE aligned with dividend policy
Answer: B
Explanation:
Explanation/Reference:
Explanation:
In order for che dividend discount model to produce a reasonable estimate of share price, the investor should have a non-control perspective. For the FCFE model to be appropriate, there should be a link between FCFE and profitability. (Study Session 12, LOS4l.c)
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