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NEW QUESTION: 1
Sentinel News is a publisher of over 100 newspapers around the country, with the exception of the Midwestern states. The company's CFO, Harry Miller, has been reviewing a number of potential candidates (both public and private companies) that would provide Sentinel News entrance into the Midwestern market. Recently, the founder of Midwest News, a private newspaper company, passed away.
The founder's family members are inclined to sell their 80% controlling interest. The family members are concerned that Midwest News's declining newspaper circulation is not cyclical, but rather permanent. The family members would reinvest the cash proceeds from the sale of Midwest News into a diversified portfolio of stocks and bonds. Miller's staff collects the financial information shown in Exhibit 1.
Miller noted that Midwest News does not pay a dividend, nor does the company have any debt. The most comparable publicly traded stock is Freedom Corporation. Freedom, however, has significant radio and television operations. Freedom's estimated beta is 0.90, and 40% of the company's capital structure is debt. Freedom is expected to maintain a payout ratio of 40%. Analysts are forecasting the company will earn S3.00 per share next year and grow their earnings by 6% per year. Freedom has a current market capitalization of S15 billion and 375 million shares outstanding. Freedom's current market value equals its intrinsic value.
Miller's staff uses current expectations to develop the appropriate equity risk premium for Midwest News.
The staff uses the Gordon growth model (GGM) to estimate Midwest's equity risk premium. The equity risk premium calculated by the staff is provided in Exhibit 2.
Miller believes the best method to estimate the required return on equity Midwest News is the build-up method. All relevant information to determine Midwest News's required relurn on equity is presented in Exhibit 2.
The specific-company premium reflects concerns about future industry performance and business risk in Midwest News. Miller makes two statements concerning the valuation methodology used to value Midwest News's equity.
Statement I: The required return estimate that is calculated from Exhibit 2 reflects all adjustments needed to make an accurate valuation of Midwest News.
Statement 2: It is better to use the free cash flow model to value Midwest News than a dividend discount model.
Miller considered two different valuation models to determine the price of Midwest News's equity: a single- stage free cash flow model and a single-stage residual income model.
Using the single-stage residual income model and assuming the I required return on equity is 15%, the value of Midwest News is closest to: (use information in Exhibits I and 2)
A. $95 per share.
B. $75 per share.
C. $115 per share.
Answer: B
Explanation:
Explanation/Reference:
Explanation:
NEW QUESTION: 2
A. Option A
B. Option D
C. Option B
D. Option C
Answer: A
NEW QUESTION: 3
Refer to the exhibit. If switch SW6 is operating VTP Server and the other devices have the same configuration as SW4, which statement about the VLANs network is true?
SW4# show run | include vtp
vtp mode client
vtp domain cisco
vtp domain ciscotest
vtp pruning
vtp version 3
A. Traffic on VLANs 1 through 9 is flooded to all switches in the network.
B. VLANs 1 through 101 are pruned on the link between SW1 and SW2.
C. VLANs 1 through 9 are pruned on the link between SW1 and SW4.
D. VLANs 1 through 101 are operational on all switch trunks.
Answer: D
NEW QUESTION: 4
HOTSPOT
Answer:
Explanation:
Automatic access expiration: Privileged Identity Management (PIM)
To protect privileged accounts from malicious cyber-attacks, you can use Azure Active Directory Privileged Identity Management (PIM) to lower the exposure time of privileges and increase your visibility into their use through reports and alerts.
You can now use PIM with Azure Role-Based Access Control (RBAC) to manage, control, and monitor access to Azure resources. PIM can manage the membership of built-in and custom roles to help you:
Enable on-demand, "just in time" access to Azure resources
Expire resource access automatically for assigned users and groups
Assign temporary access to Azure resources for quick tasks or on-call schedules Get alerts when new users or groups are assigned resource access, and when they activate eligible assignments Time-based access restrictions: Conditional Access Conditional access is a capability of Azure Active Directory that enables you to enforce controls on the access to apps in your environment based on specific conditions from a central location.
Conditional Access App Control enables user app access and sessions to be monitored and controlled in real time based on access and session policies.
Access to Azure Management endpoints: Conditional Access
Reference:
https://docs.microsoft.com/en-us/azure/role-based-access-control/pim-azure-resource
https://docs.microsoft.com/en-us/cloud-app-security/proxy-intro-aad
https://docs.microsoft.com/en-us/azure/role-based-access-control/conditional-access-azure- management