In the film (around 2: 08-2: 11) the people in the town of arcata ca are discussing the role that corporations should play in a democratic society. some of the people are concerned about the great influence that corporations play in our society, and want to make corporations more accountable to the people. one man who seems opposed to passing legislation that restricts the activities of the corporations suggests that we all have the power to vote with our wallets. he says that if you don't approve of what a corporation does, then you simply should not use its products or services. in his mind, this is sufficient for keeping corporations under the control of the people.
(a) do you think about the people can make corporations act in an ethically responsible way by voting with their wallets?
(b) what are some of the benefits and problems with this idea of voting with your wallet? (hint: consider the idea that people who have bigger wallets get more votes)?
(c) would it be fair to give people voting powers based on their wealth? for example, would it be fair for people who have between one and two million dollars get two votes instead of one vote (in an election), and people with between two and three million dollar get three votes

Employees who are paid to complete a task, such as build a house, are paid on a(n) basis

Suppose the marginal damage and marginal benefit curves in a polluted neighborhood are md = p/3 and mb = 4 – p. also, suppose that transactions costs are low, so that the consumers and the firm can bargain. we saw that in this case, the socially-optimal level of pollution is achieved. start by computing the socially-optimal p. then, for each of the following cases, compute the amount of money transferred through the bargaining process, and indicate who pays whom (i.e., whether consumers pay the firm, or vice versa). also, compute the gains to each party relative to the status quo (i.e., the starting point of the bargaining process).a)consumers have the right to clean air; firm is dominant in the bargaining process.b)consumers have the right to clean air; consumers are dominant in the bargaining process.c)firm has the right to pollute; firm is dominant in the bargaining process.d)firm has the right to pollute; consumers are dominant in the bargaining proces

Calculate the cost of each capital component—in other words, the after-tax cost of debt, the cost of preferred stock (including flotation costs), and the cost of equity (ignoring flotation costs). use both the capm method and the dividend growth approach to find the cost of equity.calculate the cost of new stock using the dividend growth approach.what is the cost of new common stock based on the capm? (hint: find the difference between re and rs as determined by the dividend growth approach and then add that difference to the capm value for rs.)assuming that gao will not issue new equity and will continue to use the same target capital structure, what is the company’s wacc? e. suppose gao is evaluating three projects with the following characteristics.each project has a cost of $1 million. they will all be financed using the target mix of long-term debt, preferred stock, and common equity. the cost of the common equity for each project should be based on the beta estimated for the project. all equity will come from reinvested earnings.equity invested in project a would have a beta of 0.5 and an expected return of 9.0%.equity invested in project b would have a beta of 1.0 and an expected return of 10.0%.equity invested in project c would have a beta of 2.0 and an expected return of 11.0%.analyze the company’s situation, and explain why each project should be accepted or rejected g