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NEW QUESTION: 1
Which of the following relations correctly describes total risk?
A. Total Risk = Threats x Exploit x Asset Value
B. Total Risk = Viruses x Vulnerability x Asset Value
C. Total Risk = Threats x Vulnerability x Asset Value
D. Total Risk = Viruses x Exploit x Asset Value
NEW QUESTION: 2
Allison Engines Corporation has established a target capital structure of 40 percent debt and 60 percent common equity. The firm expects to earn $600 in after-tax income during the coming year, and it will retain
40 percent of those earnings. The current market price of the firm's stock is $28; its last dividend was
$2.20, and its expected dividend growth rate is 6 percent. Allison can issue new common stock at a 15 percent flotation cost. What will Allison's marginal cost of equity capital (not the WACC) be if it must fund a capital budget requiring $600 in total new capital?
Calculate the retained earnings break point:
Net income = $600; Debt = 0.4; Equity = 0.6; Dividend payout = 0.6.
Break point(RE) = $600(1 - 0.6)/0.6 = $400.
Allison will need new equity capital; capital budget exceeds Break point(RE).
Use the dividend growth model to calculate k(s):
k(s) = D1/Po + g = 2.2(1.06)/28(1-.15) + .06 = 0.0979 + 0.06 = 0.1579 = 15.8%.
k(s) = component cost of retained earnings or internal equity.
NEW QUESTION: 3
You plan to perform batch processing in Azure Databricks once daily.
Which type of Databricks cluster should you use?
A. High Concurrency
Example: Scheduled batch workloads (data engineers running ETL jobs)
This scenario involves running batch job JARs and notebooks on a regular cadence through the Databricks platform.
The suggested best practice is to launch a new cluster for each run of critical jobs. This helps avoid any issues (failures, missing SLA, and so on) due to an existing workload (noisy neighbor) on a shared cluster.
Note: Azure Databricks has two types of clusters: interactive and automated. You use interactive clusters to analyze data collaboratively with interactive notebooks. You use automated clusters to run fast and robust automated jobs.