What kind of mechanism is being proposed

Assignment Help Financial Management
Reference no: EM131056185

Consider the following scenarios. What is the underlying argument for government intervention in the education market and what kind of mechanism is being proposed?

a. A politician claims that government should intervene in the education market to ”even the playing field” for rich and poor families.

b. A politician states that areas in which the population is poorly educated have more break-ins than other areas and that consequently the government should intervene in the education market.

c. A politician asserts that he wants to increase income mobility and government should intervene.

Reference no: EM131056185

Questions Cloud

Costs and expenses are expected to remain unchanged : Vandalay Industries is trying to choose between two alternative (mutually exclusive) machines. Whichever machine is selected will be utilized for the foreseeable future (in addition, for the foreseeable future, all revenues, costs and expenses are ex..
What are the incremental earnings in the second year : CathFoods will release a new range of candies which contain anti-oxidants. New equipment to manufacture the candy will cost $2 million, which will be depreciated by straight-line depreciation over five years. If CathFood's marginal tax rate is 35%, w..
What are incremental earnings in year three of this project : Vernon-Nelson Chemicals is planning to release a new brand of insecticide, Bee-Safe, that will kill many insect pests but not harm useful pollinators. Buying new equipment to manufacture the product will cost $20 million. what are the incremental ear..
What is the economic rationale for such requirement : Many states have language in their constitutions that requires the state to provide for an “adequate” level of K-12 education spending. What is the economic rationale for such a requirement?
What kind of mechanism is being proposed : Consider the following scenarios. What is the underlying argument for government intervention in the education market and what kind of mechanism is being proposed?
Determine the best combination of investments : A company faces the following investment alternatives: If the company's budget is $30 million, use the profitability index to determine the best combination of investments, given a cost of capital of 5%.
Expanded assembly line in the company manufacturing plant : Investment E is a new machine tool center which would be used in an expanded assembly line in the company’s manufacturing plant. The tool center will cost $500,000 and is expected to return cash flows of $125,000 per year for five years. The company ..
What is the effect of the exercise of stock options : In computing earnings per share, preferred dividends are subtracted from. What is the effect of the exercise of stock options? What is important to a firm's long-term debt paying ability? Which is more desirable for a firm, in regards to interest ove..
About the savings for retirement : Bill Petty, age 56 has just retired after 31 years of teaching. He is a husband and father of two children who are still dependent. Bill received a $150,000 lump-sum retirement bonus and will also receive $2,800 per month from a retirement annuity fo..

Reviews

Write a Review

Financial Management Questions & Answers

  Discuss risk from the perspective of the capital asset

Given that risk-averse investors demand more return for taking on more risk when they invest, how much more return is appropriate for, say, a share of common stock, than is appropriate for a Treasury bill?

  What is the firms weighted average cost of capital

Jett’s Carwash has $4 billion in debt and $2 billion in equity. The firm’s cost of debt of 3.3 percent and a cost of equity of 14.4 percent (assume that these costs do not change with the capital structure). The tax rate is 35%. What is the firm’s we..

  New return on equity

The common stock and debt of Northern Sludge are valued at $60 million and $40 million, respectively. Investors currently require a 17.0% return on the common stock and a 7.0% return on the debt.

  Is this a profitable deal for park equipment leasing

Park Equipment Leasing purchased a new milling machine for $1.8 million. They depreciate it using MACRS (5-year property). They lease it to Valles Global Industries for $550,000 a year for eight years. Under the Park-O-Matic leasing option, Valles Gl..

  What is the total after-tax cash flow from this sale

Transportation-Is-Us INC. purchased a truck four years ago. At the time, the firm paid $400,000 for the truck, and started depreciating the truck using straight-line depreciation over a ten-year life. However, the company no longer has need of the tr..

  What is the current value of the companys stock

JJ Industries will pay a regular dividend of $2.50 per share for each of the next four years. At the end of the four years, the company will also pay out a $61 per share liquidating dividend, and the company will cease operations. If the discount rat..

  EBIT indifference level associated with two financing plan

Abe Forrester and three of his friends from college have interested a group of venture capitalists in backing their business idea. The proposed operation would consist of a series of retail outlets to distribute and service a full line of vacuum clea..

  Change the weights of the assets to improve performance

You have these 4 assets. So if this was a portfolio, how would you change the weights of the assets to improve performance of your portfolio?

  What types of products does the business sell

What is the name of the business? What type of business is it? If the business is a partnership or corporation, what type is it? Where is it located? What types of products does the business sell? Does the business seem to be popular among consumers?..

  What is the effective annual cost to your firm

Your firm purchases goods from its supplier on terms of 1.3 / 15, net 40. What is the effective annual cost to your firm if it chooses not to take the discount and makes its payment on day 40?  What is the effective annual cost to your firm if it cho..

  Sale of new sound board used in recording studios

Rolston Music Company is considering the sale of a new sound board used in recording studios. The new board would sell for $26,100, and the company expects to sell 1,460 per year. The company currently sells 1,960 units of its existing model per year..

  As the value of the gini coefficient approaches one

As the value of the Gini coefficient approaches one, The Gini coefficient is measured by

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