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NEW QUESTION: 1
DQZ Telecom is considering a project for the coming year, which will cost $50 million. DQZ plans to use
the following combination of debt and equity to finance the investment.
. Issue $15 million of 20-year bonds at a price of 101, with a coupon rate of 8 percent, and flotation costs
of 2 percent of par.
. Use $35 million of funds generated from earnings.
The equity market is expected to earn 12 percent. U.S. treasury bonds are currently yielding 5 percent.
The beta coefficient for DQZ is estimated to be .60. DQZ is subject to an effective corporate income tax
rate of 40 percent.
The before-tax cost of DQZ's planned debt financing, net of flotation costs, in the first year is:
A. 7.92 percent.
B. 8.08 percent.
C. 10.00 percent.
D. 11.80 percent.
Answer: B
Explanation:
Choice "b" is correct. 8.08 percent before-tax cost of debt financing, net of flotation costs.

NEW QUESTION: 2
One of the web design clients contacts you to report that a visitor on their site submitted a form. A malicious web site then opens in a new window and launched malware on the visitor's computer. What is the probable cause of this attack placed on the web form?
A. Failure to encrypt post data
B. Failure to sanitize input fields
C. Failure to include CAPTCHA
D. Failure to validate input fields
Answer: A

NEW QUESTION: 3
What of the following represents a typical factor that influences the prioritization of requirements?
A. Value
B. Cost
C. Impact
D. Scope
Answer: A

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