A Lobbyist for the Coal Industry Asks Congress to Limit

question 27

Multiple Choice

A lobbyist for the coal industry asks Congress to limit environmental constraints on coal-burning plants.This is an example of _____

• A)the median-voter model.
• B)rent seeking.
• C)competing-interest legislation.
• D)populist legislation.
• E)public-interest legislation.

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Definitions:

Equity

An ownership interest. The portion of a firm’s capital representing funds belonging to its shareholders. An equity investment is an investment in stock.

Capital Components

The various sources of funding that a company uses to finance its operations and growth, including debt and equity.

Capital Structure

The mix of the three capital components (debt, preferred stock, and equity) used by a firm. The optimal capital structure is the structure at which stock price is maximized, all other things held equal. Also see Target capital structure.

Equity

The value of an ownership interest in property, including shareholders' equity in a company.