Answer:
9.14%
Explanation:
Tax exempt yield = 6.40% = 0.064
Marginal tax rate = 30% = 0.30
Equivalent taxable yield = Tax exempt yield / (1 - marginal tax rate)
Equivalent taxable yield = 0.064 / (1 - 0.30)
Equivalent taxable yield = 0.064 / 0.70
Equivalent taxable yield = 0.0914286
Equivalent taxable yield = 9.14%
Answer:
None of the multiple choices is correct. The correct answer should be: "Business profit will increase by $12,000 per year"
Explanation:
$12,000 per year is the rental rate.
If his Uncle Fred gives him the building, George will not pay the rental fee. Thus, the business profit will increase by $12,000 per year.
If we consider about the economic profit or implicit cost, it will not change.
Answer: The following would be true if the attorney charges Brendon using a retainer: <u><em>the attorney would charge separately for consultation and paperwork.</em></u>
The attorney from the firm will look into the case and thereby charge separately for consultation and paperwork.
<u><em>Therefore the correct option in this case is (b)</em></u>
Answer:
D) neither the agent nor his employing broker-dealer need register as an investment adviser
Explanation:
In the given scenario the agent produces his own research reports and provides them to a select group of personal clients.
He has permission from his employer to do this.
According to the Investment Advisers Act of 1940 the agent will only be excluded from being an investment advisor when he receives special compensation for giving investment advise.
Special compensation is when the agent is paid even when there are no transactions occuring.
In this case it's only when there is a transaction that the agent gets paid a commission. So this is not a special compensation.
As such neither the agent nor his employing broker-dealer need register as an investment adviser.
