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NEW QUESTION: 1
Which tool allows you to size and provide general performance metrics for HPE 3PAR StoreServ?
A. HPE NinjaSTARS for 3PAR
B. HPE Single Point of Configuration Knowledge
C. HPE SalesBuilder for Windows
D. HPE Product Bulletin
Answer: A

NEW QUESTION: 2
Arnaud Aims is assisting with the analysis of several firms in the retail department store industry. Because one of the industry members, Flavia Stores, has negative earnings for the current year, Aims wishes to normalize earnings to establish more meaningful P/E ratios. For the current year (2008) and six previous years, selected financial data are given below. All data are in euros.

Aims wishes to estimate normalized EPS for 2008 using two different methods, the method of historical average EPS and the method of average rate of return on equity. He will leave 2008 EPS and ROI out of his estimates. Based on his normalized EPS estimates, he will compute a trailing P/E for 2008. The stock price for Flavia Stores is €26.50.
Aims is also looking at price-to-book ratios as an alternative to price-to-earnings ratios. Three of the advantages of P/B ratios that Aims recalls are:
Advantage 1: Because book value is a cumulative balance sheet account encompassing several years, book value is more likely to be positive than EPS.
Advantage 2: For many companies, especially service companies, human capital is more important than physical capital as an operating asset.
Advantage 3: Book value represents the historical purchase cost of assets, as well as accumulated accounting depreciation expenses. Inflation and technological changes can drive a wedge between the book value and market value of assets.
Aims used a constant growth DDM to establish a justified P/E ratio based on forecasted fundamentals.
One of his associates asked Aims if he could easily establish a justified price-to-sales (P/B) ratio and price- to-book (P/B) ratio from his justified P/E ratio. Aims replied, "I could do this fairly easily) If I multiply the P/E ratio times the net profit margin, the ratio of net income to sales, the result will be the P/ S ratio. If I multiply the P/E ratio times the return on equity, the ratio of net income to book value of equity, the result will be the P/B ratio." Aims's associate likes to use the price-earnings-to-growth (PEG) ratio because it appears to address the effect of growth on the P/E ratio. For example, if a firm's P/E ratio is 20 and its forecasted 5-year growth rate is 10%, the PEG ratio is 2.0. The associate likes to invest in firms that have an above-industry- average PEG ratio. The associate also says that he likes to invest in firms whose leading P/E is greater than its trailing P/E. Aims tells the associate that he would like to investigate these two investment criteria further.
Finally, Aims makes two comments to his associate about valuation ratios based on EBITDA and on dividends.
Comment 1: EBITDA is a pre-interest-expense figure, so I prefer a ratio of total equity value to EBITDA over a ratio of enterprise value to EBITDA.
Comment 2: Dividend yields are useful information because they are one component of total return.
However, they can be an incomplete measure of return, as investors trade off future earnings growth to receive higher current dividends.
Using the information in Exhibit 1, estimate the 2008 P/E ratio for Flavia Stores using the method of average return on equity. The P/E ratio is closest to:
A. 18.8.
B. 25.0.
C. 16.0.
Answer: A
Explanation:
Explanation/Reference:
Explanation:
Normalizing EPS using the method of average return on equity is accomplished by (1) averaging the ROE over the six-year period from 2002-2007, and then (2) multiplying the average ROE times the 2008 BVPS. ROE(average) = (0.178 + 0.178 + 0.122 + 0.177 +
0.114 + 0.160) / 6 = 0.155. EPS(normalized) = 0.155(9-11) = 1.412. The P/E ratio based on this normalized EPS is 26.5 / 1.412 = 18.77.
(Study Session 12, LOS 42.f,g)

NEW QUESTION: 3
For this question, refer to the Mountkirk Games case study.
Mountkirk Games' gaming servers are not automatically scaling properly. Last month, they rolled out a new feature, which suddenly became very popular. A record number of users are trying to use the service, but many of them are getting 503 errors and very slow response times. What should they investigate first?
A. Verify that the new feature code did not introduce any performance bugs.
B. Verify that the database is online.
C. Verify that the project quota hasn't been exceeded.
D. Verify that the load-testing team is not running their tool against production.
Answer: C
Explanation:
Explanation
503 is service unavailable error. If the database was online everyone would get the 503 error.