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Andreas93 [3]
3 years ago
11

Curtis invests $250,000 in a city of Athens bond that pays 7 percent interest. Alternatively, Curtis could have invested the $25

0,000 in a bond recently issued by Initech, Inc. that pays 9 percent interest with similar risk as the city of Athens bond. Assume that Curtis's marginal tax rate is 24 percent. What is Curtis's after-tax rate of return on the city of Athens bond
Business
2 answers:
Anna11 [10]3 years ago
7 0

Answer:

7%

Explanation:

Interest income if Curtis invested

250,000 x 9% = 22,500

After tax interest income = 22,500 - (22,500 x 24%)

= 17,100

After tax rate of return = 17,100/250000

0.068

Approximately 7%

Bas_tet [7]3 years ago
3 0

Answer:

7%

Explanation:

Municipal bonds (includes both state, county and city bonds) are not subject to federal income taxes, so the after tax rate of return on the city of Athens bond is the same as its coupon rate ⇒ 7%.

In a matter of reciprocity, US securities (federal government) are not subject to state or local taxes.

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Answer:

b. False

Explanation:

It is the opposite, when several systems operate in parallel, total system capacity is the lowest value of the individual system capacities.

For e.g., sectors A, B and C operate in parallel. Sector A can handle 100 units per hour, sector B can handle 150 units per hour and sector C can handle 75 units per hour. The system's capacity is 75 units per hour. If you want to operate at 100 units per hour, a queue will in sector C.

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The focus of Performance Based Logistics (PBL) is to leverage best practices of both Government and Industry.
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PBL is synonymous with performance-based life cycle product support, where outcomes are acquired through performance-based arrangements that deliver Warfighter requirements and incentivize product support providers to reduce costs through innovation. These Product Support Arrangements (PSA) are contracts with industry or intragovernmental agreements.

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The first step of product development is to ___.
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If the expected sales volume for the current period is 7,000 units, the desired ending inventory is 400 units, and the beginning
Ksivusya [100]

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7,000 units

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Calculation for the number of units set forth in the production budget, representing total production for the current period

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<h3>What Are Barriers to Entry? </h3>

A term used in economics and business to describe variables that can deter or make it difficult for newcomers to enter a market or industry sector and so limit competition is "barriers to entry." These might include prohibitive startup fees, bureaucratic roadblocks, or other barriers that make it difficult for new rivals to enter a market. Existing businesses win from entrance barriers because they preserve their market share and capacity to make money.

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