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andrey2020 [161]
3 years ago
8

A corporation in a 40% tax bracket invests in the preferred stock of another company and earns a 5% pretax rate of return. An in

dividual investor in a 20% tax bracket invests in the same preferred stock and earns the same pretax return. The after-tax return to the corporation is ________, and the after-tax return to the individual investor is
Business
1 answer:
Allushta [10]3 years ago
4 0

Answer:

The after-tax return to the corporation is __3%______, and the after-tax return to the individual investor is 4%.

Explanation:

A. The after-tax return is the return that is earned by the corporation or individual after the deduction of income tax.  Since the corporation and the individual are in different tax brackets, you will normally expect them to earn different after-tax returns.

B. Calculation of the after-tax returns:

After-tax return = Pre-tax return minus income tax

1. Corporation = (100% - 40%) x 5% = 3%

2. Individual = (100% - 20%) x 5% = 4%

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6 0
3 years ago
In material requirement planning calculations, gross requirements for finished products are taken from ________________________.
Ipatiy [6.2K]

Answer:

Forecasted sales

Explanation:

In the production process amount of inventory purchased for producing goods must be carefully calculated.

This avoids waste incurred from buying excess of materials needed for operation. Also when there is shortage of materials time and resources are wasted getting more materials.

So when calculating material requirements for finished products it is important that we consider sales forecasts.

Materials purchased based on this will just adequately meet the demand for product.

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7 0
4 years ago
When managing your human resources, _____________ is the process of deciding who should be hired, under legal guidelines, to ser
LenaWriter [7]
I guess there should be an options to choose. Anyway, I think correct answer is: When managing your human resources, selection is the process of deciding who should be hired, under legal guidelines, to serve the best interests of the individual and the organization. Selection is the process of choosing someone who fits the best by the particular criteria. 
8 0
3 years ago
Carl Sonntag wanted to compare what proceeds he would receive with a simple interest note versus a simple discount note. Both ha
nadya68 [22]

Answer:

The proceeds from the simple discount note is $16380 , while that of simple interest is $19500

Explanation:

Simple discount notes could likened to a bank loan where interest on the loan is taken from the borrowed funds before disbursement to the loan's beneficiary,hence proceeds from such notes is face value of the notes less interest taken in advance.

While on the other hand,the proceeds from simple interest note is par or face value.

The discount or interest  is =8%*$19500=$1560 for one year,but $3120  for two years($1560*2)

The proceeds on the simple discount note =$19500-$3120

                                                                         =$16380

The proceeds on the simple interest note is face value of $19500

3 0
3 years ago
When people improve their
DochEvi [55]

Answer:

A

Explanation:

I don't have a explanation

7 0
2 years ago
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