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Exam Code: S1000-014

Exam Name: IBM Maximo Visual Inspection v8.3 Developer Specialty

Certification Provider: IBM

Related Certification: IBM Maximo Visual Inspection v8.3 Developer Specialty

S1000-014 IBM Maximo Visual Inspection v8.3 Developer Specialty

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Which network authentication protocol is supported on the IBM Storwize V7000 Unified storage system, is
used for client/server applications, and provides symmetric key cryptography?
A. Kerberos
C. Services for UNIX (SFU)
D. Network Information Service (NIS)
Answer: A
To provide heterogeneous file sharing for Unix and Windows, the Storwize V7000 Unified system must
support authentication methods for Unix and Windows. The Storwize V7000Unified system uses
Windows authentication for incoming CIFS connections and Unix authentication for incoming NFS, HTTP,
SFTP and SCP connections.
Kerberos is a network authentication protocol for client/server applications that uses symmetric key
Note: User password in clear text format is never sent over a network; the Kerberos server grants a ticket
to the client for a short span of time. This ticket is used while communicating with the server to obtain
access to the service, such as a file server. The Windows based authentication is based on Kerberos. MIT
Kerberos is a free implementation of the Kerberos protocol, which is provided by the Massachusetts
Institute of Technology.

An HSRP design requirement states that preemption must be enabled for the active switch, which is a Cisco 4507R. Assume a boot time of 300 seconds. Which setting of the preemption delay timer minimizes the loss of traffic?
A. 200 seconds
B. 50 seconds
C. 150 seconds
D. 100 seconds
Answer: C

Ivan Johnson is reviewing the investment merits of BioTLab, a fast-growing biotechnology company.
BioTLab has developed several drugs, which arc being licensed to major drug companies. BioTLab also has several drugs in phase III trials (phase III trials are the last testing stage before FDA approval).
Johnson notes that two drugs recently received approval which should provide BioTLab solid revenue growth and generate predictable cash flow well into the future. Based on the potential for the two drugs, BioTLab's estimated annual cash flow growth rate for the next two years is 25%, and long-term growth is expected to be 12%. Because of BioTLab's attractive investment opportunities, the company does not pay a dividend. BioTLab's current weighted average cost of capital is 15% and its stock is currently trading at
$50 per share. Financial information for BioTLab for the most recent 12 months is provided below:
* Net working capita! excluding cash increased from $7,460,000 to $9,985,000;
* Book value increased from $81,250,000 to $101,250,000.
* BioTLab currently has no debt.
* Research facilities and production equipment were purchased for $8,450,000.
* BioTLab held non-operating assets in the amount of $875,000.
* Net income for the 12 months was $20,000,000.
* BioTLab has a marginal tax rate of 40%.
* Noncash charges for depreciation and restructuring for the 12 months were $1,250,000.
BioTLab's management has indicated an interest in establishing a dividend and will fund new drug research by issuing additional debt.
Johnson also reviews a competitor to BioTLab, Groh Group, which has a larger segment operating in a highly cyclical business. The Groh Group has a debt to equity ratio of 1.0 and pays no dividends. In addition, Groh Group plans to issue bonds in the coming year.
Which model would be most appropriate in valuing the Groh Group?
A. FCFF model.
B. FCFE model.
C. Dividend Discount model.
Answer: A
The FCFF model is better than the FCFE model in valuing debt laden, cyclical companies and companies with a changing capital structure. Since Groh Group does not pay a dividend, the DDM model would be the least appropriate model to value the company. (Study Session 12, LOS 41.b,h)

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