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NEW QUESTION: 1
Steadybeta currently operates 3 projects, resulting in a beta of 1.27. It is considering a risky expansion project whose cash flow analysis indicates a beta of 2.3. The project requires a capital commitment of $4.8 million and has an NPV of $2 million. The current risk-free rate is 5.6% and the market risk premium is
8.9%. Steadybeta's current market capitalization is $17.2 million. If Steadybeta undertook the project, the required rate of return expected by its shareholders will be:
A. 19.5%
B. 13.9%
C. 14.8%
D. 16.2%
Answer: A
Explanation:
Explanation/Reference:
Explanation:
19.5% The firm can be considered a portfolio of 4 projects. The beta of a portfolio equals the weighted average of the betas of the individual components. The weight of a component equals the fraction of the market value it comprises. Since the project has an NPV of $2 million, its market value equals $6.8 million and the market value after the project is undertaken will be $(17.2+6.8) = $24 million. Therefore, the beta of the firm after it undertakes the project equals 17.2/24*1.27 + 6.8/24*2.3 = 1.56. The required rate of return then equals 5.6% + 1.56*8.9% = 19.5%.

NEW QUESTION: 2
You create a social media application that users can use to upload images and other content.
Users report that adult content is being posted in an area of the site that is accessible to and intended for young children.
You need to automatically detect and flag potentially offensive content. The solution must not require any custom coding other than code to scan and evaluate images.
What should you implement?
A. Bing Image Search
B. Computer Vision API
C. Custom Vision Search
D. Bing Visual Search
Answer: B
Explanation:
Explanation/Reference:
Question Set 1

NEW QUESTION: 3
What are the two main factors of SAP HANA Innovations and Challenges?
There are 2 correct answers to this question.
A. SAP BW innovations
B. DBMS technology and innovations
C. SAP SW technology and innovations
D. HW technology and innovations
Answer: C,D