In one view, the asset prices are objectively based on fluctuating principles, whilst in the certain, psychological factors and prejudices play an important role.
Explanation:
As the rate of interest increases, the price of the investments declines because the yield on risk-free investing can sometimes be greater to buyers. On the other hand, the price of assets is rising as interest rates are falling.
This is usually the interest rate owed by small investors on an approved FDIC portfolio, checking account, term deposit acct or mutual fund of the monetary sector. This is now the so-called US "risk-free" limit for bigger creditors, companies and individuals. Bills for the Treasury.
Answer:
$100,000
Explanation:
Allowance as at December 31, Year 2 $100,000
This will be recorded as it is expense for the year 2
Bad Debt Expense Dr.$100,000
Account Receivable Cr.$100,000
Commercial stock market international service
Answer:
The bonds after tax yield is given as Pre tax yield X (1-tax rate)
After Tax Yield = 9% X (1-0.36) = 9%X0.64=5.76%
Answer: 5.76%
Explanation:
The after-tax yield of any financial instrument such as a bond or even stock dividends is the effective yield after the applicable taxes have been paid. Higher the tax rate, lesser is the after-tax yield for the investor.
To calculate your after-tax yield, you need to know both the rate of return on your investment and the tax rate that applies to those profits. First, convert your tax rate that applies to the earnings to a decimal by dividing by 100. Second, subtract the result from 1 to calculate the portion of your earnings that you get to keep after you pay taxes on them. Third, multiply the result by the rate of return on the investment to calculate your after-tax yield.
For example, say that you want to calculate the after-tax rate of return on your certificate of deposit. If your rate of return is 3 percent and the tax rate applied to that interest is 24 percent, start by dividing 24 percent by 100 to get 0.24. Second, subtract 0.24 from 1 to get 0.76 – the portion that you get to keep after accounting for taxes. Finally, multiply 0.76 by your overall rate of return of 3 percent to find your after-tax yield is 2.28 percent.
