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stiks02 [169]
3 years ago
10

Fergie has the choice between investing in a State of New York bond at 9.4 percent and a Surething Inc. bond at 12.0 percent. As

suming that both bonds have the same nontax characteristics and that Fergie has a 30 percent marginal tax rate, in which bond should she invest?
Business
1 answer:
Contact [7]3 years ago
8 0

Answer:

She should invest in a State of New York bond.

Explanation:

The return on a State of New York bond is 9.4%.

The return on a Surething Inc. bond is 12%.

Fergie has a 30% marginal tax.

A state tax will not be taxed. However, a corporate bond will be taxed.

After tax return will be

= 12\% -\ (12\% \times\ 30\%)

= 0.12\ -\ (0.12\ \times\ 0.3)

= 0.12 - 0.036

= 0.084

So, the return after tax will be 8.4%.

This is lower than the return on the state bond.

So, Fergie will invest in State bond.

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If the total utility from consuming the fifth unit of a product is 6 and the total utility from all five units is 162, then the
mylen [45]

Answer:

b) 156

Explanation:

Total utility is the total amount of satisfaction received by a consumer after consuming a given quantity of a product or service. In this question there is the total utility of five product.

Total utility = 162

utility of fifth product = 6

Total utility of other four products = Total utility - utility of fifth product

Total utility of other four products = 162 - 6 = 156

4 0
3 years ago
Check my work Check My Work button is now disabledItem 5Item 5 6 points The aftertax cost of debt: Multiple Choice varies invers
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Answer: is highly dependent upon a company's tax rate.

Explanation:

The after-tax cost of debt is defined as the net cost of debt that is determined by adjusting the gross cost of debt incurred for its tax benefits. The after-tax cost of debt

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The after-tax cost of debt is the cost of debt which is included while calculating the weighted average cost of capital and it has a greater effect on the cost of capital of a firm when there's an increase in the debt-equity ratio.

7 0
3 years ago
On June 1, $50,000 of treasury bonds were purchased between interest dates. The broker commission was $500. The bonds pay intere
timurjin [86]

Answer:

$50,500

Explanation:

The investment treasury bonds account must be debited by $50,500 which includes the face value of the bonds ($50,000) and the broker's commission ($500). Investment accounts only record the purchase price of the bonds, they do not record any accrued interests.

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3 years ago
Farrick and Kenley want to form a business in which they invest money in exchange for stock ownership in their organization. Wha
Svetradugi [14.3K]

Answer:

Limited liability company

Explanation:

In simple words, A limited liability corporation (LLC) is a type of private company structure. It's among the most frequent legal structures for forming a company. In a comprehensive partnerships all members are accountable for the firm and have unlimited accountability for its obligations.

Thus the limited liability structure is most suitable for the two.

8 0
3 years ago
What are the subjects of economics
Irina-Kira [14]

Answer:

Econometrics.

Economic policy.

Legal studies.

Money and banking.

Global finance.

Economic history.

International trade.

Collective decisions.

Explanation:

I believe this is what you are asking for. Hope this is helpful :).

5 0
3 years ago
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