1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
yanalaym [24]
3 years ago
11

The break-even tax rate between a taxable corporate bond yielding 7 percent and a comparable nontaxable municipal bond yielding

5 percent can be expressed as ___________.
A. 0.05 / (l-t*) = 0.07
B. 0.05 - (l-t*) = 0.07
C. 0.07 + (l-t*) = 0.05
D. 0.05 x (l-t*) = 0.07
E. 0.05 x (l+t*) = 0.07
Business
1 answer:
finlep [7]3 years ago
7 0

Answer:D. 0.05 x (l-t*) = 0.07

Explanation: The break even tax rate is the tax rate at which industry players don't find it advantageous or disavantageous to invest in an economy, any tax rate higher than the break even tax rate will cause investors to loss certain amount of profits.

A tax rate below the break even tax rate will cause investors to want to make investment decisions as it will be beneficial and profitable to invest more money into the economy.

Calculation:

7/100=5/100(I-t*),the break even tax rate can be expressed as

=0.07=0.05*(I-t).

You might be interested in
Shaw Industries purchased a large piece of equipment from Charles Company on January 1, 2014. Shaw industries signed a note, agr
andrezito [222]

Answer:

Interest expense for the year: 25,401.6

Explanation:

Carrying value of the note x 8% = interest on note payable

317,520 x 8% = 25,401.6

The interest expense will be for this amount

And the journal entry will be as follow

Interest Expense 25,401.6

   Note Payable                      25,401.6

As the note is discounted, we will recognize interest until maturity against the note, so it reach their face value at maturity.

Because this interest won't be exigible until maturity, they are accrued interest but do not invovle a cash disbursmement for the period.

6 0
2 years ago
A tiger develops lockjaw and can no longer open its mouth. Which of the four life functions will not be able to perform? (it obv
Evgen [1.6K]

I believe the answer is: It won't be able to eat.

In wild life, this type of condition is basically a death sentence for the organism who experience it. The only way for the tiger to survive in such situation is only if humans making an intervention by surgically fix them or find another pathways to injects the nutrition into the tiger's body.

3 0
3 years ago
A hamburger stand near the local mall sells hamburgers for $3.99, drinks for $1.99, and fries for $1.49, while a gourmet restaur
wel

Answer:

Psychological pricing

Explanation:

Psychological pricing also known as price ending, charm pricing is a pricing and marketing strategy based on the theory that prices produces a psychological impact. This involves setting prices as odd prices being a little less than a whole number such as $9.99 or £2.99. It is believed that consumers think that this prices are lower than they actually are.

5 0
3 years ago
Read 2 more answers
A manufacturer of a very labor-intensive product wishes to employ the 'experience curve' to predict the AVC associated with vari
Rasek [7]

Answer:

with the third doubling, the AVC = $9.11 per unit

Explanation:

The average variable cost (AVC) decreases by 10% with each doubling of cumulative output:

<u>Production level in units</u>                         <u>AVC per unit</u>

    1,000                                                   $12.50 per unit

    2,000                                                  $11.25 per unit

    3,000                                                  $10.13 per unit

    4,000                                                  $9.11 per unit

5 0
3 years ago
Demand is not the same as quantity demanded. What factors will change the demand for a good?
DochEvi [55]

Answer:

Other factors that shift demand curves. Income is not the only factor that causes a shift in demand. Other things that change demand include tastes and preferences, the composition or size of the population, the prices of related goods, and even expectations.

6 0
2 years ago
Other questions:
  • Mufala, Inc., will issue $10,000,000 of 6% 10-year bonds. The market rate for bonds with similar risk and maturity is 8%. Intere
    5·1 answer
  • Accounts​ Receivable, December​ 31, 2017 $ 20,000​ (debit) Allowance for Bad​ Debts, December​ 31, 2017 prior to adjustment 600​
    13·1 answer
  • Kelly was working as a chef for a restaurant chain, She was promised a salary of $3,000 per month as her gross pay. She began pl
    14·1 answer
  • Which of the following would be subtracted from net income when determining cash flows from operating activities under the indir
    10·1 answer
  • Earnings on pooled investments and changes in fair value of investments are allocated to the participants having an equity inter
    14·1 answer
  • Nesmith Corporation is considering two alternatives: A and B. Costs associated with the alternatives are listed below: Alternati
    13·1 answer
  • When a manufacturing company uses direct​ materials, it assigns the cost by debiting A. Direct Materials. B. ​Work-in-Process In
    15·1 answer
  • A laptop computer that you want to purchase was originally priced at $1225. You will receive a 20% student discount, and the sal
    13·1 answer
  • Duerr company makes a $75,000, 60-day, 11% cash loan to Ryan Co. The maturity value of the loan is: (Use 360 days a year.)
    8·1 answer
  • The dividend yield is: multiple choice annual cash dividends per share divided by market value per share. annual cash dividends
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!