Day county needs a new county government building that

Reference no: EM13615964

Day County needs a new county government building that wouldcost $10 million. The politicians feel that voters will not approvea municipal bond issue to fund the building since it would increasetaxes. They opt to have a state bank issue $10 million oftax-exempt securities to pay for the building construction. Thecounty then will make yearly lease payments (of principal andinterest) to repay the obligation. Unlike conventional municipalbonds, the lease payments are not binding obligations on the countyand, therefore, require no voter approval.

1) Do you think the actions of the politicians and thebankers in this situation are ethical?

2) How do the tax-exempt securities used to pay for thebuilding compare in risk to a conventional municipal bond issued byDay County?

Reference no: EM13615964

Questions Cloud

A manufacturer produces lightbulbs at a poisson rate of 239 : a manufacturer produces lightbulbs at a poisson rate of 239 per hour.the probability that a lightbulb is defective is

If the potential energy of the pendulum-earth system is : a pendulum consists of a 2.0 kg stone swinging on a 3.9 m string of negligible mass. the stone has a speed of 7.2 ms

By how much does the spring stretch if it pulls on the sled : a light spring having a force constant of 149is used to pull a 7.50 sled on a horizontal ice rink. the coefficient of

You push with a horizontal force of 287 against a 160 box : you push with a horizontal force of 28.7 against a 16.0 box pressing it against a rough wall to hold it in place. the

Day county needs a new county government building that : day county needs a new county government building that wouldcost 10 million. the politicians feel that voters will not

How far does the car travel after the driver steps on the : an m1400-kg car is on a horizontal dry road that has a coefficient of static friction 0.8. the coefficient of kinetic

Differentiate between profit sharing and co-ownership : differentiate between profit sharing and co-ownership schemes of incentives to labour .explain your answer with

Is an adiabatic process and example of a quasi-static : is an adiabatic process and example of a quasi-static process? please explain throughly. i know an adiabatic process

A multiple-choice test consists of 81 questions with : a multiple-choice test consists of 81 questions with possible answers of a b c d e. estimate the probability that with

User Account

All Pages