2. Michael works for a financial institution that, among other services, trades stocks for clients on Wall Street. For decades, Michael's company has been able to make an
extra profit off each transaction by taking advantage of a little-known loophole in the
stock exchange laws. Now, Congress is considering passing a law that will close
that loophole and force financial companies to give that extra profit to their
customers. Michael's manager has asked him to go to Washington and lobby
against the law, hinting that his decision will affect his next performance review.
a) What is the ethical dilemma? (2 points)

How can a poor housing market put home buyers in a financially unstable position? a. changing property values means it’s easier to find homes with low rental costs. b. when the home value decreases, property taxes and insurance costs increase. c. houses are valued lower than their purchase prices, so the home equity decreases. d. home buyers lose all tax benefits and tax incentives when the housing market goes down. e. mortgage payments can increase even though the home value decreases.

Information on gerken power co., is shown below. assume the company’s tax rate is 40 percent. debt: 9,400 8.4 percent coupon bonds outstanding, $1,000 par value, 21 years to maturity, selling for 100.5 percent of par; the bonds make semiannual payments. common stock: 219,000 shares outstanding, selling for $83.90 per share; beta is 1.24. preferred stock: 12,900 shares of 5.95 percent preferred stock outstanding, currently selling for $97.10 per share. market: 7.2 percent market risk premium and 5 percent risk-free rate. required: calculate the company's wacc. (do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) wacc %

Which of the following best describes why you need to establish goals for your program?