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Exam Code: PRINCE2Foundation

Exam Name: PRINCE2 7 Foundation written Exam

Version: V13.25

Q & A: 72 Questions and Answers

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NEW QUESTION: 1
Which of the following message types is used for the RA message that is used for IPv6 stateless autoconfiguration?
A. UPv6
B. IGMPv6
C. ICMPv6
D. TCPv6
Answer: C

NEW QUESTION: 2
Digit Conversion in Adaptation can be specified to modify "origination" type headers. Which three are origination/source type UIs? (Choose three)
A. Contact (in 3xx response)
B. Request-URI
C. Refer-To (in REFER messages)
D. History-info(calling portion)
E. P-Asserted-ldentity
Answer: A,D,E

NEW QUESTION: 3
Which of the following statements is false with respect to factors that influence the attractiveness of financing with warrants and convertibles?
A. If management expects future growth prospects to outweigh its risks, then issuing convertible bonds or bonds with warrants would be deemed as more prudent than issuing straight bonds.
B. These hybrid securities are more commonly issued by either smaller companies or companies that are facing financial distress.
C. These hybrid securities are generally unsecured by the issuer.
Answer: A
Explanation:
Since a convertible bond will always be higher in price than the corresponding straight bond, its YTM will thus always be lower than that of a straight bond.
If management expects future growth prospects to outweigh its risks, than issuing convertible bonds or bonds with warrants would imply that these future earnings will have to be shared among new shareholders as well. Thus, the more prudent move would be to issue straight bonds so that the exiting shareholders may keep those increased earnings amongst themselves.

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