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NEW QUESTION: 1
During an audit, an IS auditor notices that the IT department of a medium-sized organization has no separate risk management function, and the organization's operational risk documentation only contains a few broadly described IT risks. What is the MOST appropriate recommendation in this situation?
A. Use common industry standard aids to divide the existing risk documentation into several individual risks which will be easier to handle.
B. No recommendation is necessary since the current approach is appropriate for a medium-sized organization.
C. Establish regular IT risk management meetings to identify and assess risks, and create a mitigation plan as input to the organization's risk management.
D. Create an IT risk management department and establish an IT risk framework with the aid of external risk management experts.
Answer: C
Explanation:
Establishing regular meetings is the best way to identify and assess risks in a medium-sized organization, to address responsibilities to the respective management and to keep the risk list and mitigation plans up to date. A medium-sized organizationwould normally not have a separate IT risk management department. Moreover, the risks are usually manageable enough so that external help would not be needed. While common risks may be covered by common industry standards, they cannot address the specific situation of an organization. Individual risks will not be discovered without a detailed assessment from within the organization. Splitting the one risk position into several is not sufficient.

NEW QUESTION: 2
MediSoft Inc. develops and distributes high-tech medical software used in hospitals and clinics across the United States and Canada. The firm's software provides an integrated solution to monitoring, analyzing, and managing output from a variety of diagnostic medical equipment including MRls, CT scans, and EKG machines. MediSoft has grown rapidly since its inception ten years ago, averaging 25% growth in sales over the last decade. The company went public three years ago. Twelve months after their IPO, MediSoft made two semiannual coupon bond offerings, the first of which was a convertible bond. At the time of issuance, the convertible bond had a coupon rate of 7.25%, par value of $1,000, a conversion price of
$55.56, and ten years until maturity. Two years after issuance, the bond became callable at 102% of par value. Soon after the issuance of the convertible bond, the company issued another series of bonds which were putable, but contained no conversion or call features. The putable bonds were issued with a coupon of 8.0%, par value of $1,000, and 15 years until maturity. One year after their issuance, the put feature of the putable bonds became active, allowing the bonds to be put at a price of 95% of par value, and increasing linearly over five years to 100% of par value. MediSoft's convertible bonds are now trading in the market for a price of $947 with an estimated straight value of $917. The company's putable bonds are trading at a price of $1,052. Volatility in the price of MediSoft's common stock has been relatively high over the last few months. Currently the stock is priced at $50 on the New York Stock Exchange and is expected to continue its annual dividend in the amount of $1.80 per share.
High-tech industry analysts for Brown & Associates, a money management firm specializing in fixed- income investments, have been closely following MediSoft ever since it went public three years ago. In general, portfolio managers at Brown & Associates do not participate in initial offerings of debt investments, preferring instead to see how the issue trades before considering taking a position in the issue. Since MediSoft's bonds have had ample time to trade in the marketplace, analysts and portfolio managers have taken an interest in the company's bonds. At a meeting to discuss the merits of MediSofVs bonds, the following comments were made by various portfolio managers and analysts at Brown & Associates:
"Choosing to invest in MediSoft's convertible bond would benefit our portfolios in many ways, but the primary benefit is the limited downside risk associated with the bond. Since the straight value will provide a floor for the value of the convertible bond, downside risk is limited to the difference between the market price of the bond and the straight value."
"Decreasing volatility in the price of MediSoft's common stock as well as increasing volatility in the level of interest rates are expected in the near future. The combined effects of these changes in volatility will be a decrease in the price of MediSoft's putable bonds and an increase in the price of the convertible bonds.
Therefore, only the convertible bonds would be a suitable purchase."
Calculate the market conversion premium per share for MediSoft's convertible bonds.
A. $2.61.
B. $5.56.
C. $2.95.
Answer: A
Explanation:
Explanation/Reference:
Explanation:

Finally, calculate the market conversion premium per share as the difference between the market conversion price and the market price of the stock:
market conversion premium = 52.61 - 50.00 = 2.61. (Study Session 14, LOS 54.j)

NEW QUESTION: 3
Note: This question is part of a series of questions that present the same scenario. Each question in the series contains a unique solution that might meet the stated goals. Some question sets might have more than one correct solution, while others might not have a correct solution.
After you answer a question in this sections, you will NOT be able to return to it. As a result, these questions will not appear in the review screen.
You have the following line-of-business solutions:
*
ERP system
*
Online WebStore
*
Partner extranet
One or more Microsoft SQL Server instances support each solution. Each solution has its own product catalog. You have an additional server that hosts SQL Server Integration Services (SSIS) and a data warehouse. You populate the data warehouse with data from each of the line-of-business solutions. The data warehouse does not store primary key values from the individual source tables.
The database for each solution has a table named Products that stored product information. The Products table in each database uses a separate and unique key for product records. Each table shares a column named ReferenceNr between the databases.
This column is used to create queries that involve more than once solution.
You need to load data from the individual solutions into the data warehouse nightly. The following requirements must be met:
*
If a change is made to the ReferenceNr column in any of the sources, set the value of IsDisabled to True and create a new row in the Products table.
*
If a row is deleted in any of the sources, set the value of IsDisabled to True in the data warehouse.
Solution: Perform the following actions:
*
Enable the Change Tracking for the Product table in the source databases.
*
Query the CHANGETABLE function from the sources for the updated rows.
*
Set the IsDisabled column to True for the listed rows that have the old ReferenceNr value.
*
Create a new row in the data warehouse Products table with the new ReferenceNr value.
Does the solution meet the goal?
A. No
B. Yes
Answer: A
Explanation:
We must check for deleted rows, not just updates rows.
References: https://www.timmitchell.net/post/2016/01/18/getting-started-with-change-tracking-in-sql-server/