Answer: 12.29%
Explanation:
Municipal bonds are tax exempt and so are attractive for this reason. If John is to be indifferent between the two, the corporate bond would have to offer a return that when adjusted for tax, will give the same return as the municipal bond.
Assume that return is x;
x * ( 1 - 17%) = 10.2%
0.83x = 10.2%
x = 10.2%/0.83
x = 12.29%
Answer:
25,670.80€
Explanation:
this is an ordinary annuity since the first payment occurs one year from now. The present value of an ordinary annuity is given by the following formula:
present value = annual distribution x PV annuity factor
- annual distribution =4,000
- PV annuity factor, 9%, 10 periods = 6.4177
present value = 4,000 x 6.4177 = 25,670.80€
Answer: (E) Harvesting
Explanation:
The harvesting is one of the type of marketing strategy that retain the goods and the services in the production line and also reduces the market cost or spending on the specific products.
The harvesting strategy is also known as the exist strategy in the market and the main objective of the harvesting strategy is that it maximize the product profits and also has the opportunity for trading in an organization for distributing the shares.
Therefore, Option (E) is correct.
Answer:
1. Issuance of bonds
Cash-flow classification: Financing activity
2. Sale of equipment
Cash-flow classification: Investing activity
3. Amortization expense
Cash-flow classification: Operating activity
4. Purchase of treasury stock
Cash-flow classification: Financing activity
5. Receipt of dividends on investment
Cash-flow classification: Operating activity
6. Purchase of land
Cash-flow classification: Investing activity
