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Refer to the Following Paragraph to Answer the Questions Below

question 3

Multiple Choice

Refer to the following paragraph to answer the questions below.
After graduating from university, Samantha got a job with the county government. One year into her new job, she learned that Big Corporation planned to build a huge new factory on farmland outside a quiet, small town of Smallsville that had 2,000 residents. Big Corporation flew in a high-powered public relations team of five people who showed a slick video, threw out a few statistics, and promised that many new jobs and income would come to the county and town. Two of the public relations people said they were Factory Site Experts. They said that in the three other locations where Big Corporation had built factories in the past two years, the local people were very happy. They said the same would occur in Smallsville and further study was unnecessary. Just before the County Board was about to vote for approval, Samantha asked some questions. How would the new factory with 1,000 employees affect the way of life in Smallsville? Would the new factory create traffic congestion, noise, and air or water pollution? Would the town need to upgrade its police, fire, or ambulance services? Would it raise housing prices? What percent of the jobs would go to local people, and would the jobs be well-paying and stable? Would there be three shifts with some shifts ending late at night or early in the morning? How would the local schools and sewage treatment services be affected? Would the new factory's location adjacent to the area's only park limit the use of the park and its playground and bicycle trail by local children?
-_____creates a general mental picture of a social condition,______ paints a detailed, highly accurate picture of a social condition, and________ tests a theory's predictions or principle.

Definitions:

Cost of Capital

The cost of capital is the rate of return a company must earn on its investments to maintain its market value and attract funds, including the cost of equity and debt.

Weighted Average Cost of Capital (WACC)

The average rate of return a company is expected to pay its security holders to finance its assets, weighted according to the proportion of equity and debt in the company's capital structure.

Cost of Equity Financing

This represents the return a company must offer investors to entice investment, effectively the cost of new equity capital.

Required Rate of Return

The least percentage of yearly return needed to entice entities or individuals to invest in a particular project or security.