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NEW QUESTION: 1
For each of the following statements, select Yes if the statement is true. Otherwise, select No. NOTE: Each correct selection is worth one point.

Answer:
Explanation:

NEW QUESTION: 2
Refer to the exhibit.

If this SIP call is initiated using early offer, which SIP message will UA#2 use to communicate its media capability to UA#1?
A. RTP Media
B. ACK
C. 200 OK
D. INVITE
E. 180 Ringing
Answer: C

NEW QUESTION: 3
Information technology general controls set the foundation for effective control over computerized information system assets. General controls apply to the entire computer operation. Which of the following is/are NOT out of these controls?
A. Input controls
B. Security controls
C. Security administration
D. Administrative controls
Answer: A

NEW QUESTION: 4
If the spread between the required rate of return and the anticipated dividend growth rate were to decrease significantly and suddenly while the remaining components of the P/E ratio were to remain unchanged, which of the following would likely occur? Further, a decrease in the retention rate would lead to what effect on the earnings multiplier, holding both k and g constant?
A. The earnings multiplier would decrease; the earnings multiplier would increase.
B. The earnings multiplier would increase; the earnings multiplier would either increase or decrease depending on the firm's ROE compared to its cost of capital.
C. The earnings multiplier would increase; the earnings multiplier would increase.
D. The earnings multiplier would decrease; the earnings multiplier would decrease.
E. The earnings multiplier would increase; the earnings multiplier would decrease.
Answer: C
Explanation:
Explanation/Reference:
Explanation:
Remember that the equation used to determine the appropriate earnings multiplier for a stock market series is the following:
{P/E = [D/E / (k - g)]}
Where: P/E = the earnings multiplier, or Price-to-Earnings ratio, D/E = the dividend payout ratio at t1, k = the required rate of return, and g = the anticipated growth rate of dividends.
As the spread between k and g narrows, the earnings multiplier figure will increase. Indeed, the earnings multiplier is very sensitive to changes in the spread between k and g, and this is the primary reason for the greater relative volatility of the P/E ratio versus the EPS figure for a stock market series.
A decrease in the retention rate will lead to an increase in the earnings multiplier figure, holding everything else equal. Remember that the retention rate is simply (1 - dividend payout ratio). So, a decline in the retention rate is analogous to an increase in the dividend payout ratio. An increase in the dividend payout ratio, holding everything else equal, will lead to an increase in the earnings multiplier figure.