Describe the externalities argument for distributing money

Assignment Help Financial Management
Reference no: EM131190657

Describe the externalities argument for distributing money from one community to another.

Provide an example of this kind of redistribution based on externalities.

Reference no: EM131190657

Questions Cloud

What role technology will play in the communication of ideas : Address What role technology will play in the communication of thoughts and ideas. Discuss how the information gap between generations, cultures, income levels, and education can be resolved.
What is a bank : 1. What is a bank? How does a bank differ from most other financial-service providers? 2. Under U.S. law what must a corporation do to qualify and be regulated as a commercial bank?
Describe a qualitative study to address the issue : Describe a qualitative study to address the issue. Which qualitative design would you use? How will you make sure that the information you obtain is trustworthy? How is trustworthiness in qualitative research similar and different from reliabilit..
Which of the goods is more efficiently provided locally : Think about two public goods-public schools and food assistance for needy families. - Which of the goods is more efficiently provided locally? - Which is more efficiently provided centrally? Explain.
Describe the externalities argument for distributing money : Describe the externalities argument for distributing money from one community to another.- Provide an example of this kind of redistribution based on externalities.
Pledges must be distinguished by the extent : Pledges must be distinguished by the extent to which they are restricted. A private college receives the following pledges of support. As part of its annual fund drive, alumni and friends of the college pledge $8 million. The college estimates that a..
Recommend the expected value of the company : Recommend the expected value of the company within one year, with and without expansion and justify whether the company's stockholders be better off with or without the expansion. Assess the expected value of the company's debt in one year, with an..
What is the price of an additional dollar of local spending : What is the price of an additional dollar of local spending in each case?- Which of the two methods do you think would lead to higher levels of local spending on roads?
Ow many electrons should be available in a 1-µf capacitor : We can detect whether one electron is being stored in the capacitor by observing the change of the capacitor voltage. Why can we not detect one electron being stored in a 1-μF capacitor? ( Hint: compute the capacitor voltage change while one elect..

Reviews

Write a Review

Financial Management Questions & Answers

  Using expectations theory-forecast yields on securities

The yield on 1-year Treasury securities is 6%, 2-year securities yield 6.2%, and 3-year securities yield 6.3%, and 4-year securities yield 6.5%.There is no maturity risk premium. Using expectations theory, forecast the yields on the following securit..

  Journal entries required for each days cash reconciliation

The day cashier at Palmer’s Kwick Shop has routinely been off in his sales (register tapes) and cash drawer.  None of these occurrences have been journalized. Show the journal entries required for each day’s cash reconciliation. As the Accountant ass..

  What is the firms net income and after-tax dividend

Assume that Provident Health System, a for-profit hospital, has $1 million in taxable income for 2011, and its tax rate is 30 percent. Given this information, what is the firm’s net income? (Hint: net income is what remains after taxes have been paid..

  Political influence has exerted upon the budgetary process

Evaluate the level of the impact that political influence has exerted upon the budgetary process overall. Suggest three to four (3-4) strategies that the managers could deploy in order to influence the budget process.

  Investors are risk-neutral-the risk-free interest rate

A firm has a project that costs $600 today and pays off next period $900 with probability .5 and $360 with probability .5. Assume that all investors are risk-neutral, the risk-free interest rate is 0, and there are no direct bankruptcy costs.

  Preferred stock outstanding

A corporation has $5,000,000 of 10 percent bonds and $3,000,000 of 12 percent preferred stock outstanding. The firm’s financial breakeven (assuming a 40 percent tax rate) is

  Required rate of return for these bonds by investing public

ABC $1,000 par value bonds are currently selling for $888. These bonds have a coupon interest rate of 8% and mature in 8 years. What is the required rate of return for these bonds by the investing public?

  What is the effective cost of borrowing in case

Your firm has an average collection period of 24 days. Current practice is to factor all receivables immediately at a discount of 1.4 percent. What is the effective cost of borrowing in this case?

  Explain how this article addresses health policy

Go to the CDC's Public Health Law Program (PHLP) News website and choose an article that interests you. Briefly describe the article you chose. Explain how this article addresses health policy

  Sinking fund and preferred dividends-out of current income

Goiânia Corporation is expecting to have EBIT next year of $11 million, with a standard deviation of $7 million. Goiânia has $35 million in bonds with coupon of 8%, selling at par, which are being retired at the rate of $2.5 million annually. Calcula..

  What nominal annual rate will they charge their customers

Bank 1 lends funds at a nominal rate of 9% with payments to be made semiannually. Bank 2 requires payments to be made quarterly. If Bank 2 would like to charge the same effective annual rate as Bank 1, what nominal annual rate will they charge their ..

  Project uses both equity and debt finance

Should a project or an ongoing business use debt or equity financing? What are the pros and cons of each? If a project uses both equity and debt finance, what is the appropriate mix? What types of financing are used by your current organization (or a..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd