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matrenka [14]
3 years ago
14

An investor purchases one municipal bond and one corporate bond that pay rates of return of 5% and 6.4%, respectively. If the in

vestor is in the 15% tax bracket, his after-tax rates of return on the municipal and corporate bonds would be, respectively, _____..
Business
1 answer:
r-ruslan [8.4K]3 years ago
3 0

Answer:

The answer are:

  • Municipal bonds have an after tax rate of return of 5%
  • Corporate bonds have an after tax rate of return of 5.44%

Explanation:

Since earnings from municipal bonds are exempt from income taxes, their after tax rate of return is 5% (doesn't vary).

On the other hands earnings from corporate bonds are taxed by 15%. To calculate the after tax rate of return we multiply:

nominal rate of return x (1 - tax rate) = 6.4% x (1 - 15%) = 6.4% x 0.85 = 5.44%

You might be interested in
On an organization's board of directors, inside directors ____; outside directors _____. are supposed to be elected from outside
BigorU [14]
On an organization's board of directors, inside directors <span>may be members of the firm; outside directors </span><span>are supposed to be elected from outside the firm.</span>
The board of directors is responsible for keeping the organization’s vision, mission, and strategic planning goals. Duties of boards include: <span>choosing the CEO, approving major policies, making major decisions, overseeing performance<span>, and serving as external advocate.</span></span>
4 0
4 years ago
Last year Oliver Inc had a total assets turnover of 1.60 and an equity multiplier of 1.85. Its sales were $200,000 and its net i
schepotkina [342]

Answer:

7.4%

Explanation:

As we know that

ROE = Profit margin ×  Total asset turnover × Equity multiplier

where,

Profit margin = (Net income ÷ Sales) × 100

                     = ($10,000 ÷ $200,000) × 100

                     = 5%

So, the ROE would be

= 5% × 1.60 × 1.85

= 14.8%

Now if the net income is increased by  $5,000

So, the updated profit margin would be

= (Net income ÷ Sales) × 100

= ($15,000 ÷ $200,000) × 100

= 7.5%

And updated ROE would be

= 7.5% × 1.60 × 1.85

= 22.2%

So, the change in ROE would be

= 22.2% - 14.8%

= 7.4%

4 0
4 years ago
opulation 500 Population over age 16 400 Persons employed full-or part-time 200 Persons unemployed and actively seeking work 20
Reika [66]

Answer:

The number of people employed = 200

The number of people unemployed = 20

The number of people in the labor force = 220

Explanation:

a) Data and Calculations:

Population = 500

Population over age 16 = 400

Persons employed full-or part-time 200

Persons unemployed and actively seeking work 20

Persons who have quit seeking work due to lack of success 10

Part-time workers seeking full-time jobs 30

The number of people employed = 200 (full-or part-time)

The number of people unemployed = 200 (400 - 200)

The number of people in the labor force = employed and unemployed seeking work (200 + 20) = 220

b) A country's labor force is made up of employed persons (full-time or part-time) and persons actively looking for work.  Some of the population who are not actively seeking employment may be kept of the labor force because of education or family responsibilities.  These persons may return to the labor market later.

3 0
3 years ago
Candice, owner of Green Solar Panels, has found that some of her department managers were using management by objectives, but th
Ilia_Sergeevich [38]

Answer: B) False

Explanation: Management by objectives (MBO) is a type management which it's main goal is to improve the performance of an organization by means of stating the objectives which of the organisation and is usually agreed on by both the management and the employees. In the case above some objective have being put in place by Candice using MBO method, which she later discovered that some department are not complying with. This would affect the results of the MBO program she introduced, for an MBO to yield improve results it needs full cooperation from employees.

6 0
3 years ago
polska, incorporated, is obligated to pay its creditors $9,300 during the year. what is the value of the shareholders’ equity if
gizmo_the_mogwai [7]

Total assets=Total liabilities+ Total equity

=> Total equity= total asset - total liabilities

a. Share holders equity=(11100-9300)= $1800

b. Share holders equity=(8700-9300)= -600 ~ 0

Rounded -600 to nearest whole number, that is 0

<h3>What are shareholders?</h3>

A shareholder may be a individual or institution that has contributed cash in a enterprise in trade for a “share” of the possession. That proprietorship is spoken to by common or preferred offers issued by the company and held (i.e., claimed) by the shareholder. The shareholders are the proprietors of the company and give money related backing in return for potential profits over the lifetime of the company.

To learn more about shareholder, visit;

brainly.com/question/15186298

#SPJ4

6 0
1 year ago
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