Detroit Is Trying to Figure Out How to Shut Down

question 19

Multiple Choice

Detroit is trying to figure out how to shut down and close off ________ because the city cannot afford to pay for street lights, garbage pickup, and police protection for the entire 360 square kilometers (139 square miles) .

• A) advertising revenue
• B) the rap video industry
• C) corporate investment
• D) entire neighborhoods
• E) the entire CBD

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Definitions:

Flotation Costs

Financial outlays a business faces when it issues new stocks, covering charges for underwriting, legal services, and registration documentation.

Retained Earnings

The portion of a company's profits that is kept or retained within the company instead of being paid out to shareholders as dividends, often used for investment or to pay off debt.

IRR

Internal Rate of Return; a financial measurement tool utilized to assess the potential profit of investment opportunities.

WACC

Weighted Average Cost of Capital, a calculation that reflects the average rate of return a company is expected to pay to all its security holders.