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NEW QUESTION: 1
A company has a covenant on its 5% long-term bond, stipulating that its retained earnings must not fall below $2 million.
The company has 100 million shares in issue.
Its most recent dividend was $0.045 per share. It has committed to grow the dividend per share by 4% each year.
The nominal value of the bond is $60 million. It is currently trading at 80% of its nominal value.
Next year's earnings before interest and taxation are projected to be $11.25 million.
The rate of corporate tax is 20%.
If the company increases the dividend by 4%, advise the Board of Directors if the level of retained earnings will comply with the covenant?
A. The covenant is not breached as retained earnings = $4.68 million.
B. Covenant is not breached as retained earnings = $2.40 million.
C. Covenant is not breached as retained earnings = $2.10 million.
D. Covenant is breached as retained earnings = $1.92 million.
Answer: D
NEW QUESTION: 2
DRAG DROP
Answer:
Explanation:
NEW QUESTION: 3
A system is experiencing noticeably slow response times, and users are being locked out frequently. An analyst asked for the system security plan and found the system comprises two servers: an application server in the DMZ and a database server inside the trusted domain. Which of the following should be performed NEXT to investigate the availability issue?
A. Review syslogs from critical servers.
B. Review the firewall logs.
C. Install a WAF in front of the application server.
D. Perform fuzzing.
Answer: A