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NEW QUESTION: 1
Brock Brothers wants to maintain its capital structure, which is 30 percent debt, and 70 percent equity. The company forecasts that its net income this year will be $1,000,000. The company follows a residual dividend policy, and anticipates a dividend payout ratio of 40 percent. What is the size of the company's capital budget?
A. $1,428,571
B. $2,000,000
C. $1,000,000
D. $600,000
E. $857,143
Answer: E
Explanation:
Explanation/Reference:
Explanation:
Since the company expects to pay out 40% of net income or $400,000, it must expect to have $600,000 of retained earnings available for capital investment. Given that the firm will finance new investment with 70% equity and 30% debt, $600,000 must represent 70% of the firm's capital budget, that is, $600,000 = (0.7) CB or CB = $857,143.

NEW QUESTION: 2
How does IBM Maximo Asset Management address the Sarbanes-Oxley question: I Do you have an accurate inventory of all your physical assets?
A. By using the Assets, Locations, Preventive Maintenance, Storerooms, and Inventory features and functions
B. By using only the Assets and Locations features and functions
C. By using only the Assets and Inventory features and functions
D. By using only the Assets, Locations, Storerooms, and Inventory features and functions
Answer: D

NEW QUESTION: 3
What are the structures from largest to smallestthat controlsIBM Tivoli Storage Manager (TSM) policy definitions?
A. A policy domain contains copy groups and management classes.
B. A policy domain contains policy sets, management classes, and copy groups.
C. An active policy set contains policy domains, management classes and copy groups.
D. A policy set contains policy domains, management classes and copy groups.
Answer: B

NEW QUESTION: 4
What are the two actions the receiver of a PGP email message can perform that allows establishment of trust between sender and receiver?
A. Decrypt the message by encrypting the digital signature with his private key, then using the digital signature to decrypt the message.
B. Decode the message by decrypting the asymmetric key with his private key, then using the asymmetric key to decrypt the message.
C. Decode the message by decrypting the symmetric key with his public key, then using the symmetric key to decrypt the message.
D. Decode the message by decrypting the symmetric key with his private key, then using the symmetric key to decrypt the message.
Answer: B