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NEW QUESTION: 1
If Brewer Corporation's bonds are currently yielding 8 percent in the marketplace, why would the firm's
cost of debt be lower?
A. There is a mixture of old and new debt.
B. Market interest rates have increased.
C. Interest is deductible for tax purposes.
D. Additional debt can be issued more cheaply that the original debt.
Answer: C
Explanation:
Choice "c" is correct. Because interest expense is a tax deduction, the cost to Brewer is lower than the
market yield rate on debt.
Choice "a" is incorrect. If market interest rates increase, then Brewer's bonds would have to be offered at
a discount to stay competitive with the market. This discount would increase (not lower)
Brewer's cost of debt.
Choice "b" is incorrect. Issuance of cheaper additional debt will lower future cost of debt, but have no
impact on current cost of debt.
Choice "d" is incorrect. Presumably, the 8% yield already includes new and old debt.
NEW QUESTION: 2
Click on the calculator icon in the upper left corner.
A current EMC Avamar customer is having trouble completing replication on a nightly basis. The customer's networking team sees that Avamar is only using about 20% of the available bandwidth on their 100 Mb/s WAN link. The latency or round trip time on the WAN link is 94 ms. The customer would like to tune replication to use more of the available bandwidth What is the Bandwidth Delay Product for this link?
A. 1335 KB
B. 1748 KB
C. 1147 KB
D. 1534 KB
Answer: C
NEW QUESTION: 3
What is an accurate description of a fully meshed SAN fabric?
A. a switch configuration that uses multiple ISLs between all switches in the fabric
B. maximum of seven hops from end to end
C. hierarchical switch configuration with a minimum of two ISLs
D. storage ports connected to marginal switches
Answer: A