There are two aspects of efficiency that the equilibrium of market for loanable funds exhibits. select the two statements that characterize these two aspects of efficiency. a. investment projects that are financed by savers have larger rates of return than projects that do not receive financing. b. savers who lend money are willing to accept a higher minimum interest rate than potential savers who do not lend money. c. there is always a small surplus of funds in the market. d. savers who lend money are willing to accept a lower minimum interest rate than potential savers who do not lend money. e. all potential savers lend moneyf. investment project that are financed have smaller rates of return than projects not receiving financing.

You are the new chief information officer for the video-game developer, necturus games. the company has recently undergone a major expansion of its primary product, and you must staff up the is department and determine the best way to develop new game "capsules" for the game, "escape velocity."

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

Find a company that has followed a strong strategic direction- state that generic strategy and the back-up points to support your position.