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NEW QUESTION: 1
To reduce the load on the system, what should you do with the older documents that exist in the database?
Choose the correct answer.
A. Archive and delete
B. Extract and delete
C. Delete
D. Backup and delete
Answer: A

NEW QUESTION: 2
General Investments is considering the purchase of a significant stake in Pacific Computer Components (PCC). Although PCC has stable production output, the company is located in a developing country with an uncertain economic environment. Since the monetary environment is particularly worrisome. General has decided to approach the valuation of PCC from a free cash flow model using real growth rates. In real rate analysis, General uses a modified build-up method for calculating the required real return, specifically:
required real return = country real rate + industry adjustment +
company adjustment
Elias Sando, CFA, an analyst with General, estimates the following information for PCC:
Domestic inflation rate = 8.738%
Nominal growth rate = 12.000%
Real country return = 3.000%
Industry adjustmen = 3.000%
Company adjustment = 2.000%
Additionally, Exhibit 1 reports information from PCC's financial statements for the year just ended (stated in LC).

PCC generally maintains relatively constant proportions of equity and debt financing and is expected to do so going forward.
Sando has gathered information on earnings before interest, taxes, depreciation, and amortization (EBITDA) and is contemplating its direct use in another cash flow approach aimed at valuing PCC.
Consider the following two statements regarding EBITDA:
Statement 1: EBITDA is not a good proxy for free cash flow to the firm (FCFF) because it does not incorporate the importance of the depreciation tax shield nor does it reflect the investment in working capital or in fixed capital.
Statement 2: EBITDA is also a poor proxy for FCFE.
Free cash flow to equity (FCFE) is closest to:
A. LC7,300,000.
B. LCI0,200,000.
C. LC8,400,000.
Answer: A
Explanation:
Explanation/Reference:
Explanation:
FCFE = NI + depreciation - FCInv - WCInv + net borrowing
= 7.0 + 3.5 -3.2 -0.4 + (2.4 -2.0)
= LC7.3 million, or LC7.300.000
(Study Session 12, LOS 41.c)

NEW QUESTION: 3
For each of the following statements, select Yes if the statement is true. Otherwise, select No.
NOTE: Each correct selection is worth one point.

Answer:
Explanation: