SAP C-LCNC-2406 Q&A - in .pdf

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NEW QUESTION: 1
Delicious Candy Company (Delicious) is a leading manufacturer and distributor of quality confectionery products throughout Europe and Mexico. Delicious is a publicly-traded firm located in Italy and has been in business over 60 years.
Caleb Scott, an equity analyst with a large pension fund, has been asked to complete a comprehensive analysis of Delicious in order to evaluate the possibility of a future investment.
Scott compiles the selected financial data found in Exhibit 1 and learns that Delicious owns a 30% equity interest in a supplier located in the United States. Delicious uses the equity method to account for its investment in the U.S. associate.

Scott reads the Delicious's revenue recognition footnote found in Exhibit 2.
Exhibit 2: Revenue Recognition Footnote
__________________________________________________________________________________ in millions__________________________________________________________________________ Revenue is recognized, net of returns and allowances, when the goods are shipped to customers and collectability is assured. Several customers remit payment before delivery in order to receive additional discounts. Delicious reports these amounts as unearned revenue until the goods are shipped. Unearned revenue was €7,201 at the end of 2009 and €5,514 at the end of 2008.
Delicious operates two geographic segments: Europe and Mexico. Selected financial information for each segment is found in Exhibit 3.

At the beginning of 2009, Delicious entered into an operating lease for manufacturing equipment. At inception, the present value of the lease payments, discounted at an interest rate of 10%, was 6300 million. The lease term is six years and the annual payment is 669 million. Similar equipment owned by Delicious is depreciated using the straight-line method and no residual values are assumed.
Scott gathers the information in Exhibit 4 to determine the implied "stand-alone" value of Delicious without regard to the value of its U.S. associate.

Using the data found in Exhibit 1 and Exhibit 4, Delicious's implied P/E multiple without regard to its U.S.
associate is closest to:
A. 15.1.
B. 14.0.
C. 14.8.
Answer: C
Explanation:
Explanation/Reference:
Explanation:
Delicious's implied value without its U.S. associate is €90,736 [€97,525 Delicious market cap - €6,739 pro- rata share of associates market cap ($32,330 x 30% x €0.70 current exchange rate)].
Delicious's net income without associate is €6,147 (€6,501 net income - €354 pro-rata share of income from associate).
Implied P/E = 14.8 (€90,736 Delicious implied value without associate / €6,147 Delicious net income without associate). (Study Session 7, LOS 26.e)

NEW QUESTION: 2
Which three statements about Work Order Completions are true?
A. Partial Work Order Completions are not possible with backflush.
B. A Work Order can be completed with or without backflushing the parts.
C. A Work Order can be completed at multiple locations.
D. Work Orders can be completed with serialized components.
E. A partial completion cannot be reversed.
Answer: B,D,E

NEW QUESTION: 3
A VMware administrator has been tasked with managing storage for an ESXi cluster connected to a VMAX3 array. The VMware administrator is not familiar with Unisphere for VMAX and wants to use the VMware Web Client to provision VMFS datastores.
Which EMC product provides this functionality?
A. VASA
B. SYMCLI
C. VSI Plug-in
D. PowerPath
Answer: C

NEW QUESTION: 4
The IBM Tivoli Identity Manager system-wide Escalation Limit is set to 2 days 0 hours 0 minutes. The Reminder Interval is set to 1 day and an entitlement workflow approval activity (Escalation participant: Branch Manager) set to an escalation period of 3 days, 12 hours, 0 minutes. Assuming that Post office is turned off, no approval for the Access request has taken place and default Approval activity notification settings apply, which statement is true?
A. The Branch Manager will receive an escalation e-mail after 3 days 0 hours 0 minutes as no approval has taken place.
B. The Branch Manager will receive an escalation e-mail after 3 days, 12 hours, 0 minutes as no approval has taken place
C. The Branch Manager will receive two reminder e-mails before receiving the escalation e-mail.
D. The Branch Manager will receive an escalation e-mail after 2 days 0 hours 0 minutes as no approval has taken place.
Answer: B

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