An organization's technician was granted a role that enables him to prioritize projects throughout the organization. Which type of authority will the technician most likely be exercising?

• A.Referent authority.
• B.Expert authority.
• C.Coercive authority.
• D.Legitimate authority

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Responsibility for the control of end-user computing EUC) exists at the organizational, departmental, and individual user level. Which of the following should be a direct responsibility of the individual users?

• A.Acquisition of hardware and software.
• B.Taking equipment inventories.
• C.Strategic planning of end-user computing.
• D.Physical security of equipment.

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According to IIA guidance, which of the following would be the best first step to manage risk when a third party is overseeing the organization's network and data?

• A.Applying administrative privileges to ensure right-to-access controls are appropriate
• B.Creating a standing cybersecurity committee to identify and manage risks related to data security
• C.Drafting a strong contract that requires regular vendor control reports and a right-to-audit clause.
• D.Creating a comprehensive reporting system for vendors to demonstrate their ongoing due diligence in network operations

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Assume that nominal interest rates just increased substantially but that the expected future dividends for an entity over the long run were not affected. As a result of the increase in nominal interest rates, the entity's share price should

• A.Increase.
• B.Decrease.
• C.Stay constant
• D.Change, but in no obvious direction_

Correct Answer: B

The dividend growth model is used to calculate the price of a share.

Assuming that DI and G remain constant, an increase in Rs resulting from an increase in the nominal interest rate will cause Po to decrease. A higher interest rate raises the required return of investors, which results in a lower share price. An entity has the following three investment projects available:

The entity has a 4O f debt and 60 l equity capital structure. Each monetary unit of investment funds will be raised in these proportions .40 of debt and .60 of equity). The marginal cost of financing increases with the amount of new funds raised, as follows:

These investment opportunities and financing costs are shown in the graph below.

MCC=Marginal cost of capital IOS=Investment opportunity schedule

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Which of the following price adjustment strategies is designed to smooth production for the selling firm?

• A.Cash discounts.
• B.Quantity discounts.
• C.Functional discounts.
• D.Seasonal discounts.

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