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Minchanka [31]
3 years ago
15

A bond portfolio and a stock portfolio both provided an unrealized pretax return of 8% to a taxable investor. If the stocks paid

no dividends, we know that the ________.
Business
1 answer:
tankabanditka [31]3 years ago
7 0

Answer:

A bond portfolio and a stock portfolio both provided an unrealized pretax return of 8% to a taxable investor. If the stocks paid no dividends, we know that the ________.

The after-tax return of the stock portfolio was higher than the after-tax return of the bond portfolio.

Explanation:

The returns from the bond portfolio are taxed at the corporate rate while returns from stock investments are taxed at a lower rate.  It is well-known that the risks from stock are higher than the risks from bonds.  As a result, the stock investments always attract higher returns and less tax, as the investor can postpone the tax for a longer term.   Again, stock investments can be for the long-term unlike bonds that have defined periods.

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If you want to compare two different investments, what should you calculate?
Alexandra [31]

Answer: B - ROI percentages

Explanation:

edge 2020

6 0
3 years ago
At Abendreg, a multinational law firm, only English-speaking trainers are given the opportunity to impart training to employees
geniusboy [140]

Answer:

Adverse impact

Explanation:

Adverse impact is the unpleasant effect of a bias segmentation of a particular group during selection procedures such as employment, hiring, training, layoff or appraisal processes. Adverse impact in a work place processes may give rise to discrimination directed to a particular group base on a given attributes such as qualifications, ability, age, gender etc.

In this question, the company has most of its branches in English-speaking countries hence they only gave preferences to English-speaking trainers to impart training to employees in different countries

7 0
3 years ago
Pop Consulting leased machinery to Red Inc. on July 1, 2018. The lease was recorded as a sales type lease. The present value of
labwork [276]

Answer:

The increase in earnings is $136511.56

Explanation:

Since the lease is a sale type of lease,it means that as soon as the machinery is delivered to the lessee,profit should be recognized on the lease transaction,which is computed below:

Profit on lease=present value of lease payments-costs

                         =$274149-$156000

                          =$118149

However,every six months interest is charged on the lease,which clearly indicates another source of earnings,the interest in the first six months is given below:

Interest=($274149-$44617)*8%

             =$18362.56

Please note that interest is charged after lease payment as lease payment is made in advance not in arrears.

Conclusively, the increase in earnings is $118149+$18362.56

That is $136511.56

                                                                   

5 0
3 years ago
Tanner-UNF Corporation acquired as a long-term investment $200 million of 7% bonds, dated July 1, on July 1, 2018. The market in
likoan [24]

Answer:

1. Prepare the journal entry to record Tanner-UNF’s investment in the bonds on July 1, 2018 and interest on December 31, 2018, at the effective (market) rate.

July 1, investment in UNF bonds

Dr Investment in bonds HTM 200,000,000

   Cr Cash 160,000,000

   Cr Discount on bonds 40,000,000

December 31, interest revenue from investment in bonds

Dr Cash 7,000,000

Dr Discount on bonds 200,000

   Cr Interest revenue 7,200,000

Discount on bonds = ($160,000,000 x 4.5%) - ($200,000,000 x 3.5%) = $7,200,000 - $7,000,000 = $200,000

2. Prepare any additional journal entry necessary for Tanner-UNF to report its investment in the December 31, 2018, balance sheet.

Investment in bonds HTM = $200,000,000 (face value) - $39,800,000 (discount on bonds) = $160,200,000

Changes in the market value of bonds held to maturity are not considered by the company.

4. Suppose Moody's bond rating agency downgraded the risk rating of the bonds motivating Tanner-UNF to sell the investment on January 2, 2019, for $310.0 million. Prepare the journal entry to record the sale.

Dr Cash 150,000,000

Dr Dr Discount on bonds 39,800,000

Dr Loss on investment in bonds HTM 10,200,000

   Cr Investment in bonds HTM 200,000,000

3 0
3 years ago
Wendy is a college student in her sophomore year. she is single with no kids, has vegetation paid for by scholarship. what type
AlekseyPX

Answer:

none of the above

Explanation:

6 0
3 years ago
Read 2 more answers
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