Answer:
0.063 or 6.3% (or more)
Explanation:
Given:
Combined Tax Bracket = 30% = 30/100 = 0.30
Yields of corporate Bonds = 9% = 9/100 = 0.09
Yield to Shift Investors to choose municipal bonds = ?
Calculation:
Yield from corporate bond = (After tax yield) x Yield rate of corporate Bonds
= (0.70) x (0.09)
= 0.063 or 6.3%
Working note:
After tax yield = (1 - tax rate )
After tax yield = (1 - 0.30 )
After tax yield = (0.70)
so, they must give 6.3% yield
Answer:
The correct answer is: False
Explanation:
Answer:
Caroline's paycheck each week is $12 per hour times the number of hours she works. Caroline thus currently earns a <u>NOMINAL</u> wage of $12 per hour. Suppose the price of sparkling water is $3 per gallon. The amount of sparkling water she can buy with her paycheck is <u>4 GALLONS</u> of sparkling water, which represents her <u>REAL</u> wage.
When workers and firms negotiate compensation packages, they have expectations about the price level (and changes in the price level) and agree on a <u>NOMINAL</u> wage with those expectations in mind. If the price level turns out to be higher than expected, a worker's <u>REAL</u> wage is <u>LOWER</u> than both the worker and employer expected when they agreed to the wage.
Suppose that Caroline and her employer both expected inflation to be 3% between 2011 and 2012. They signed a two-year contract stipulating that Caroline would earn $12 per hour in 2011 and $12.36 per hour in 2012. However, actual inflation between 2011 and 2012 turned out to be 5% rather than the expected 3%. For example, suppose the price of sparkling water rose from $3 per gallon to $3.15 per gallon. This means that between 2011 and 2012, Caroline's nominal wage <u>INCREASED</u> by <u>3%</u> and her real wage <u>DECREASED</u> by approximately <u>2%</u>.
Explanation:
Nominal wages are measured in current dollars, while real wages measure the employee's purchasing power. If the inflation rate is higher than expected, the total amount of goods that an employee will be able to purchase will decrease, lowering their real wage.
Answer: $ 66,200
Explanation:
Payables which are due for payment within a one year period from the balance sheet date are considered as current liability. The amounts to be considered in the current liability section of the balance sheet are as follows:
Accounts Payable $ 26,700
Salaries Payable $ 17,800
Note payable Due 2017 $ 21,700
Total Payables in CL $ 66,200
The Bond payable due in 2025 of $ 23,800 and Note Payable due 2021 of $ 41,700 are not considered as they are payable beyond one year from date of balance sheet
