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NEW QUESTION: 1
What is the value in seconds of the "Max Response Time" in an IGMPv2 report message?
A. 0
B. 1
C. 2
D. 3
Answer: B

NEW QUESTION: 2


A. Option C
B. Option A
C. Option D
D. Option B
Answer: D

NEW QUESTION: 3
Should CyberAge use trade credit and continue paying at the end of the credit period?
A. No, if the cost of alternative long-term financing is greater.
B. Yes, if the cost of alternative short-term financing is less.
C. Yes, if the cost of alternative short-term financing is greater.
D. Yes, if the entity's weighted-average cost of capital is equal to its weighted-average cost of trade credit.
Answer: C
Explanation:
The entity is currently paying an annual rate of 25.2% as determined below) to obtain trade credit and pay at the end of the credit period. This policy should be continued if trade credit is the only source of financing, or if other sources are available only at a higher rate. The annual rate is determined as follows If the entity pays Web Master within 10 days. it will US $500 2% X $25,000). Thus the entity is effectively paying US $500 to retain US $24,500 $25,000 - $500) for 20 days 30 - 10). The annualized interest rate on this borrowing is 36.7346% [(US $500 - $24,500) x 360 days - 20 days)]. The annualized rate on this borrowing is 36,7346% [(US $500 - $24,500) x 360 days - 20 days)]. Similarly the entity 90
- 10). The annualized rate on this borrowing is 23,6842% [(US $2,500 / $47,500 x 360 days / 80 days)]. The average amount borrowed from Web Master is US $16,333,33 [1 month x $24,500 x 20 days / 30 days)] and the average amount borrowed from Softidee is US $125,666,67 [3 months x $47,500 x 80 days / 90 days)]. Thus, the weighted average of these two rates based on average borrowings is 25.2% {(36.7346% x US $16,333,33) + 23,6842% x $126,666.67)]. / $16,333,33) + (23.6842% $126,666,66}] / $16,333,33 + $126,666,67)].