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You Are Asked to Manage the Oversubscription Ratio of Your

question 19

Multiple Choice

You are asked to manage the oversubscription ratio of your spine and leaf IP fabric. You determine that you are at a 3:1 ratio of downstream to upstream traffic and must achieve a 1:1 ratio. In this scenario, which two actions would you take to achieve this goal? (Choose two.)


Definitions:

Unsecured Creditors

Individuals or institutions that lend money without obtaining specific assets as collateral, ranking behind secured creditors in the event of bankruptcy.

Financial Leverage

Rephrased: Utilizing debt to finance additional assets, with the aim of increasing returns to equity holders, while also increasing financial risk.

Interest Tax Shield

The decrease in what one owes in income taxes by removing the cost of debt interest from the taxable income figure.

Capital Structure Puzzle

The term refers to the challenge and debate over the optimal composition of a company's debt and equity financing to maximize its value.

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