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NEW QUESTION: 1
True or False: When you perform a restore operation to a point in time or from a DB Snapshot, a new DB Instance is created with a new endpoint.
Restoring From a DB Snapshot
Amazon RDS creates a storage volume snapshot of your DB instance, backing up the entire DB instance and not just individual databases. You can create a DB instance by restoring from this DB snapshot. When you restore the DB instance, you provide the name of the DB snapshot to restore from, and then provide a name for the new DB instance that is created from the restore.
You cannot restore from a DB snapshot to an existing DB instance; a new DB instance is created when you restore.
NEW QUESTION: 2
Company Y plans to diversify into an activity where Company X has an equity beta of 1.6, a debt beta of zero and gearing of 50% (debt/debt plus equity).
The risk-free rate of return is 5% and the market portfolio is expected to return 10%.
The rate of corporate income tax is 30%.
What would be the risk-adjusted cost of equity if Company Y has 60% equity and 40% debt?
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