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GuDViN [60]
3 years ago
7

Lochmere Corporation is evaluating a taxable bond at 7% and a municipal bond at 5.75%. What is the break-even tax rate?

Business
1 answer:
jeyben [28]3 years ago
5 0

Answer:

18%

Explanation:

Lochemere is evaluating a taxable bond at 7%

= 7/100

= 0.07

The municipal bond is 5.75%

= 5.75/100

= 0.0575

Therefore the break even tax rate can be calculated as follows

Municipal bond = taxable bond × (1-tax rate)

0.0575= 0.07 × (1-t)

0.0575= 0.07(1-t)

1-t= 0.0575/0.07

1-t = 0.82

t= 1-0.82

t= 0.18×100

t= 18%

Hence the break-even tax rate is 18%

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Answer:

Inventory

Explanation:

Inventory refers to

  1. The finished products in the warehouse or store that is ready for sale.
  2. Raw materials used in the production of goods
  3. Goods that in the production process, also known as work in progress.

Inventory is held with the intention of selling. It is classified as current assets. Income realized from the sale of inventory is revenue to the business.

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Si para cierta cantidad de un bien su demanda es elástica el ingreso total será creciente
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Explanation:

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TL Company has expected earnings of $75 in one year if it does well and $25 if it does poorly. The firm has outstanding debt of
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Answer:$27.78

Explanation:

Expected value of debt after one year = (40* .60)+(15*.40)

= 24 + 6

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Current value of debt = Value at 1year / (1+r)^n

= 30/ (1+.08)^1

= 30 / 1.08

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3 0
3 years ago
The agreement of the trial balance totals is an indication that all transactions have been properly recorded in the books of acc
Zina [86]

Answer:

No

Explanation:

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3 0
3 years ago
A stock paying $5 in annual dividends currently sells for $80 and has an expected return of 14%. What might investors expect to
Drupady [299]

Answer:

$86.20

Explanation:

Total return from stock = Current price * expected return

Total return from stock = 80*14%

Total return from stock = $11.20

Dividend already realized = $5

Capital gain = $11.20 - $5

Capital gain = $6.20

End of one year price = Beginning price + capital gain

End of one year price = $80 + $6.20

End of one year price = $86.20

Therefore, at the end of one year price is $86.20

5 0
3 years ago
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