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NEW QUESTION: 1
You are the project manager for your organization to install new workstations, servers, and cabling throughout a new building, where your company will be moving into. The vendor for the project informs you that the cost of the cabling has increased due to the some reason. This new cost will cause the cost of your project to increase by nearly eight percent. What change control system should the costs be entered into for review?
A. Contract change control system
B. Cost change control system
C. Only changes to the project scope should pass through a change control system.
D. Scope change control system
Because this change deals with the change of the deliverable, it should pass through the cost change control system. The cost change control system reviews the reason why the change has happened, what the cost affects, and how the project should respond.
B: This is not a contract change. According to the evidence that a contract exists or that the cost of the materials is outside of the terms of a contract if one existed. Considered a time and materials contract where a change of this nature could be acceptable according to the terms of the contract. If the vendor wanted to change the terms of the contract then it would be appropriate to enter the change into the contract change control system.
C: The scope of the project will not change due to the cost of the materials.
D: There are four change control systems that should always be entertained for change: schedule, cost, scope, and contract.
NEW QUESTION: 2
The stock of a zero growth firm has a beta of 1.3 at a time when the market premium equals 7.7% and the risk-free rate equals 5%. The firm's earnings multiplier ratio equals ________.
A. information about earnings and dividends is missing
According to the Dividend Discount Model, P/E = payout ratio/(k-g) in standard notation. A no growth firm has a retention ratio of zero and a payout ratio of 1. Further, g = 0 for no growth. Therefore, the P/Eratio of a no-growth firm is simply equal to the reciprocal of its required rate of return. the firm's CAPM required rate = 5% + 1.3 * 7.7% = 15%. The earnings multiplier is therefore equal to 1/0.15 = 6.66.
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