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NEW QUESTION: 1
Company A is identical in all operating and risk characteristics to Company B, but their capital structures differ.
Company B is all-equity financed. Its cost of equity is 17%.
Company A has a gearing ratio (debt:equity) of 1:2. Its pre-tax cost of debt is 7%.
Company A and Company B both pay corporate income tax at 30%.
What is the cost of equity for Company A?
A. 21.2%
B. 17.0%
C. 20.5%
D. 22.0%
Answer: C

NEW QUESTION: 2
Which of the following is not the responsibility of the asset and liability committee (ALCO)?
A. set limits on borrowing in the short-term markets to fund long-term lending
B. ensure that compliance is carried out efficiently
C. develop, evaluate, monitor and approve strategies related to risk due to imbalances in the asset and liability structure of the balance sheet
D. report to the board of directors
Answer: C

NEW QUESTION: 3
Which step must be taken before an evaluation job is set up?
A. configure a common platform to import common fields
B. create reconciliation rules for further asset imports
C. import the primary assets for the first time with the predefined reconciliation rules
D. configure data collectors based on the selected data collection model
Answer: D

NEW QUESTION: 4
Narcotics are known by a number of trade names. One of the trade names is:
A. Azene
B. Paregoric
C. Valium
D. Butisol
E. Quaalude
Answer: B

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