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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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A warehouse manager who is placing an order for maintenance supplies for delivery vehicles would be making a programmed decision
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The Answer is False.

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6 0
3 years ago
Assume that total output in a two-good economy in 2018 consists of 50,000 apples and 2 Tesla cars, with prices of 1$ per apple a
KiRa [710]

Answer:

30%

Explanation:

GDP is the sum of all products and services produced by an economy over a given period of time. In an economy with only two products, GDP will be the sum of the quantity produced by each product at its given price.

Thus, the 2018 GDP will be:

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Tesla: 2 (Units) x $ 25,000 (Price) = $ 50,000

GDP 2018 = $ 50,000 + $ 50,000 = $ 100,000

The GDP variation between two years is calculated by adopting a year whose price will be the basis of the calculation, usually the first year chosen, in this case by 2018. Thus, after calculating the GDP of the base year (2018), the GDP of the The following year (2019) will be calculated using the base year price. In other words, let's calculate the 2019 GDP with the quantities sold in 2019, but with the 2018 prices. This is called the real GDP calculation, which really matters for comparison between two years.

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Apples: 55,000 units x $ 1 (base price) = $ 55,000

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6 0
3 years ago
Stana and Rick were discussing whether Chloe, a senior HR manager at their firm, had an advanced degree. Stana surmised that sin
Gwar [14]

Answer:

A. Deduction

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In summary, deductive reasoning moves from generalities to a specific streamlined logical conclusion.

8 0
3 years ago
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