Which of the following is an example of a positive externality (additional social benefit)? rev: 04_09_2018 multiple choice an increase in the value of land you own when a nearby development is completed the costs paid by a company to build an automated factory falling property values in a neighborhood where a disreputable nightclub is operating the higher price you pay when you buy a heavily advertised product

The common stock and debt of northern sludge are valued at $65 million and $35 million, respectively. investors currently require a return of 15.9% on the common stock and a return of 7.8% on the debt. if northern sludge issues an additional $14 million of common stock and uses this money to retire debt, what happens to the expected return on the stock? assume that the change in capital structure does not affect the interest rate on northern’s debt and that there are no taxes.