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NEW QUESTION: 1
An analyst with Churn Brothers Brokerage is attempting to value shares of Intelligent Semiconductor using the Multi-stage Dividend Discount Model. Intelligent Semiconductor is expected to grow at a rate of 35% per year for the next two years, grow at to 25% per year in years 3 and 4, and then grows at 12% per year forever. Similar investments have warranted a 14.50% per year rate of return, and Intelligent Semiconductor paid a dividend of $0.70 at t0.
Using the information provided, determine the value of Intelligent Semiconductor shares according to the Multi-stage Dividend Discount Model.
A. The answer cannot be calculated from the information provided.
B. $87.83
C. $55.98
D. $91.87
E. $88.23
F. None of these answers is correct.
Answer: C
Explanation:
Explanation/Reference:
Explanation:
The multi-stage dividend discount model is a more realistic way of valuing fast-growing companies that pay dividends. With this model, it is necessary to estimate the above-average, or "supernormal," rate ofgrowth, as well as the long-term rate of growth. Once these growth rates have been determined, they are used to calculate the dividends at various points in the future. In this example, you are provided with two supernormal growth rates, in addition to the long-term rate of growth. Since two supernormal growth rates exist for Intelligent Semiconductor, the calculation is somewhat more complex than a situation characterized by a single supernormal growth rate. Nonetheless, the multi-stage dividend discount model can be applied.
The multi-stage dividend discount model is often referred to as the "two-stage dividend discount model," and these two titles should be considered interchangeable for all intents and purposes, i.e. the "two stage" dividend discount model can be used to determine the value of a company that has multiple growth rate changes.
Incorporating the given information into the multi-stage dividend discount model will yield the following:
P = {[$0.70 * 1.35) / 1.145] + [($0.945 * 1.35) / 1.31103] + [($1.276 * 1.25) / 1.50112] + [($1.595 * 1.25) /
1.71879] + [($1.994 * 1.12) / (.145 - .12]/1.71879}
Which can further be developed into:
P = {$0.82533 + $0.97309 + $1.06254 + $1.15998 + $51.96} = $55.98

NEW QUESTION: 2
Julia is a senior security analyst for Berber Consulting group. She is currently working on a contract for a small accounting firm in Florida. They have given her permission to perform social engineering attacks on the company to see if their in-house training did any good. Julia calls the main number for the accounting firm and talks to the receptionist. Julia says that she is an IT technician from the company's main office in Iowa.
She states that she needs the receptionist's network username and password to troubleshoot a problem they are having. Julia says that Bill Hammond, the CEO of the company, requested this information. After hearing the name of the CEO, the receptionist gave Julia all the information she asked for.
What principal of social engineering did Julia use?
A. Social Validation
B. Reciprocation
C. Friendship/Liking
D. Scarcity
Answer: B

NEW QUESTION: 3
Which of the following statements are true about Jenkins? (Choose TWO correct answers.)
A. Jenkins only works on local files and cannot use SCM repositories.
B. Jenkins includes a series of integrated testing suites.
C. Jenkins' functionality is determined by plugins.
D. Jenkins Is specific lo Java based applications.
E. Jenkins can delegate tasks to slave nodes.
Answer: A

NEW QUESTION: 4
Which four types of VPN natively provide encryption of user traffic? (Choose four.)
A. MPLS
B. AToM
C. SSL
D. VPLS
E. IPsec
F. Microsoft PPTP
G. L2TPv3
H. GETVPN
Answer: C,E,F,H
Explanation:
Following are the VPN's that provide encryption of user traffic: IPSEC: ports used are UDP 500, UDP 4500, ESP SSL: TCP/UDP port 4500 GETVPN: Uses GDOI Microsoft PPTP: TCP port 1723
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