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Arada [10]
3 years ago
14

A taxable bond with a coupon rate of 6.00% has a market price of 98.19% of par. The bond matures in 9.00 years ans pays semi-ann

ually. Assume an investor has a 25.00% marginal tax rate. The investor would prefer otherwise identical tax-exempt bond if it's yield to maturity was more than _____%
Business
1 answer:
DaniilM [7]3 years ago
3 0
If it were more than 50percent
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Horseshoe Stables is losing significant market share and thus its managers have decided to decrease the firm's annual dividend.
Naya [18.7K]

Answer:

$3.90

Explanation:

using the discount model we can calculate the stock price:

stock price = [dividend x (1 - g)] / (RRR + g) ⇒ since the growth rate is negative, we need to change additions for subtractions and vice versa.

stock price = [$0.86 x (1 - 3.5%)] / (17.8% + 3.5%) = ($0.86 x 0.965) / 0.213 = $0.8299 / 0.213 = $3.90

4 0
3 years ago
Question: A banking institution offers different investment programs for young couples, families, and retired individuals. What
klemol [59]
The answer is B final answer
6 0
3 years ago
Transfer Pricing
dusya [7]

Answer:

Pembroke= $105,000

Multinomah= $120,000

Explanation:

Giving the following information:

The materials used by the Multinomah Division of Isbister Company are currently purchased from outside suppliers at $90 per unit. These same materials are produced by the Pembroke Division.

The Pembroke Division can produce the materials needed by the Multinomah Division at a variable cost of $75 per unit. The division is currently producing 120,000 units and has capacity of 150,000 units. The two divisions have recently negotiated a transfer price of $82 per unit for 15,000 units.

Pembroke= 15,000*(82 - 75)= $105,000

Multinomah= 15,000*(90 - 82)= $120,000

3 0
2 years ago
According to the erosion model of organizational commitment, the employee with the fewest emotional bonds is the most likely to
Likurg_2 [28]

The statement, according to the erosion model of an organizational commitment, the employee with the fewest emotional bonds is the most likely to quit, is true.

The erosion model explains that an organization's employee who have less or fewer emotional bonds tend to quit the organization because they do not feel or get involved in the organization, or they don't feel any attachment to it.

Here the social influence model states that suppose when two employees are closely related or have good terms, so if one of them quits their work, then the other one is more likely to follow them and leave the organization.

Hence, the erosion model suggests that employees with fewer bonds will be most likely to quit the organization.

To learn more about erosion model here:

brainly.com/question/28444776

#SPJ4

4 0
1 year ago
Business a decides to increase production of cars by buying new robots this is an example of
Korolek [52]

Answer:

Do you have any answer choices?

Explanation:

5 0
2 years ago
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