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Nitella [24]
3 years ago
5

Suppose a foreign investor who holds tax-exempt Eurobonds paying 10.50% is considering investing in an equivalent-risk domestic

bond in a country with a 28% withholding tax on interest paid to foreigners. If 10.50% after-tax is the investor's required return, what before-tax rate would the domestic bond need to pay to provide the required after-tax return
Business
1 answer:
algol133 years ago
4 0

Options:

a. 14.58%  

b. 12.83%  

c. 15.46%  

d. 16.33%  

e. 16.92%

Answer:

Correct option is A.

14.58%

Explanation:

After-tax yield = pre-tax yield x (1- marginal rate)

and Taxable-equivalent yield = tax-exempt yield / (1- marginal tax rate)

Hence Taxable-equivalent yield =.105/(1-.28)  

=.105/.72=.14583333

=14.58 %

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Consumer Products Corporation wants to make an offering of securities to the public. This offering is not exempt from registrati
Ilia_Sergeevich [38]

Answer:

C. a prospectus.

Explanation:

Before a firm make an offering of its securities public, it must provide investors with prospectus as it contains the aims, purpose and objectives of the firm. All relevant information about the firm is contained therein.

Prospectus provides clarity to intending investors such as shares to be offerred for sale, issues on tax to be paid, investment policies, component of the fund and shares redemption etc. It is a legal document required by securities and exchange commission which gives information of an investment offering to the public about the sale of securities such as stocks, shares, bonds etc.

The prospectus must also give a concise information because investors will rely on it whether to invest by reviewing the investment fund and to check whether to invest in such fund.

5 0
3 years ago
Asteroid Industries accumulated the following cost information for the year:
chubhunter [2.5K]

Answer:

Factory overhead= $22,900

Explanation:

Giving the following information:

Direct materials $15,200

Indirect materials 3,200

Indirect labor 7,700

Factory depreciation 12,000

Direct labor 36,200

<u>Factory overhead is all the indirect costs related to production. In this case:</u>

Factory overhead= indirect materials + indirect labor + factory depreciation

Factory overhead= 3,200 + 7,700 + 12,000

Factory overhead= $22,900

5 0
3 years ago
William was a factory worker in the 1920s. his company trained him in the exact sequence of steps he needed to make each day so
maria [59]
<span>william's company was using the principles of </span><span>scientific management

</span><span>scientific management is a management practice which rely on scientific finding in order to improve the productivity in the company.
</span>In scientific management mindset, each company need to implement a specific method completely to the letter without any form of flexibility.
This form of management started to fade away by the end of 20th century.
8 0
3 years ago
If the required reserve ratio is 0.08, a bank can lend out:
GrogVix [38]

Answer:

C) 92 percent of its deposits.

Explanation:

Since, the reserve ratio represents the portion of deposit that a commercial bank must hold onto, rather than lend out or invest.

i.e. if reserve ratio = a%,

Then the percentage of amount that bank can land out = (100-a)%,

Here,

Reserve ratio = 0.08 = 8%,

Thus, the percentage of amount that bank can land out = (100-8)% = 92%.

i.e. bank can land 92 percent of its deposits.

8 0
3 years ago
The following information is taken from the accounts of Latta Company. The entries in the T-accounts are summaries of the transa
DochEvi [55]

Answer:

1.

(a) is the Actual Manufacturing Overhead Expense incurred for the year.

(b) is the Manufacturing overhead applied to Work in Process for the year.

(c) is the Cost of goods manufactured for the year.

(d) is the Cost of goods sold for the year.

2. Journal Entry:

Debit Cost of Goods Sold $81,408

  Credit Manufacturing Overhead $81,408

  To close the underapplied overhead to cost of goods sold.

3. Journal Entry:

Debit Work in Process $4,992

            Finished Goods $12,672

            Cost of goods sold $63,744

 Credit Manufacturing Overhead $81,408

 To close the underapplied overhead to the 3 accounts.

Explanation:

a) Data and Calculations:

1. T-accounts:  

Manufacturing Overhead

      Debit            Credit                      

a) 488,448 (b) 407,040

                   Bal. 81,408

Work in Process

      Debit            Credit  

Bal.    9,960  (c) 758,000

    302,000

       91,000

(b) 407,040

                     Bal. 52,000

Finished Goods

      Debit            Credit  

Bal.  38,000 (d) 664,000

(c) 758,000

                   Bal. 132,000

Cost of Goods Sold

      Debit            Credit  

(d) 664,000

2. Distribution of overhead applied to production:

Work in Process, ending $ 24,960

Finished Goods, ending     63,360

Cost of Goods Sold           318,720

Overhead applied         $ 407,040

3.  Allocation of Underapplied:

Work in Process, ending    $4,992 (24,960/407,040 * 81,408)

Finished Goods, ending      12,672 (63,360/407,040 * 81,408)

Cost of Goods Sold            63,744 (318,720/407,040 * 81,408)

4. The Underapplied overhead is $81,408.  This figure is stated as the balance on the Manufacturing overhead account.  It means that the applied overhead is less than the actual overhead incurred by $81,408.

6 0
3 years ago
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