To promote increased use of port facilities in a major coastal city, a state government has decided to construct a state-of-the-art lighthouse at a projected cost of $10 million. The state proposes to pay half this cost and asks the city to raise the additional funds. Rather than raise its $5 million in funds via an increase in city taxes and fees, however, the city's government asks major businesses in and near the port area to contribute voluntarily to the project. The city is likely to face problems in raising the funds because:A. the businesses will demand tax breaks as compensation for their contributions. B. individual businesses may presume that others will pay for the lighthouse so that they can escape paying for their portion without causing a reduction in the structure's benefit. C. the combination of public and private monies will create doubt as to the lighthouse's legal owner. D. major businesses in and near the port area are probably too numerous for the city to contact.

One way that marketing mix characteristics differ for organizational buying

Quantitative problem: you need $20,000 to purchase a used car. your wealthy uncle is willing to lend you the money as an amortized loan. he would like you to make annual payments for 4 years, with the first payment to be made one year from today. he requires a 8% annual return. what will be your annual loan payments? round your answer to the nearest cent. do not round intermediate calculations. $ how much of your first payment will be applied to interest and to principal repayment? round your answer to the nearest cent. do not round intermediate calculations. interest: $ principal repayment

If a firm plans to issue new stock, flotation costs (investment bankers' fees) should not be ignored. there are two approaches to use to account for flotation costs. the first approach is to add the sum of flotation costs for the debt, preferred, and common stock and add them to the initial investment cost. because the investment cost is increased, the project's expected return is reduced so it may not meet the firm's hurdle rate for acceptance of the project. the second approach involves adjusting the cost of common equity as follows: . the difference between the flotation-adjusted cost of equity and the cost of equity calculated without the flotation adjustment represents the flotation cost adjustment. quantitative problem: barton industries expects next year's annual dividend, d1, to be $1.90 and it expects dividends to grow at a constant rate g = 4.3%. the firm's current common stock price, p0, is $22.00. if it needs to issue new common stock, the firm will encounter a 6% flotation cost, f. assume that the cost of equity calculated without the flotation adjustment is 12% and the cost of old common equity is 11.5%. what is the flotation cost adjustment that must be added to its cost of retaine