In October 2011, The Ohio State University sold $500 million worth of 100-year bonds, becoming the first public university to issue a so-called century bond. The bonds were priced to yield 4.849%, which was 1.70 percentage points over 30-year Treasury rates. Ohio State was established in 1870, has 64,077 enrolled students, and has a campus of more than 1,700 acres with 457 buildings. Two private universities, Massachusetts Institute of Technology (MIT) and the University of Southern California, had issued century bonds earlier that year. Typically, universities such as Ohio State issue 30-year tax-free bonds with fixed or floating interest rates. Public and private universities are tax-exempt institutions, but the income from century bonds is taxable to the buyer. What are the likely economic advantages to Ohio State of issuing century bonds

73. calculate the weighted average cost of capital (wacc) based on the following information: the equity multiplier is 1.66; the interest rate on debt is 13%; the required return to equity holders is 22%; and the tax rate is 35%. (a) 15.6% (b) 16.0% (c) 15.0% (d) 16.6% (e) none of the above

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

What would happen to the equilibrium price and quantity of lattés if the cost to produce steamed milk