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 %
Answer:
Purchases is $3400 million
Explanation:
Cost of goods formula comes readily helpful in this case.
Cost of goods sold=beginning inventory+purchases-ending inventory
by arranging the formula,the purchases formula is given thus:
Purchases=cost of goods sold-beginning inventory+ending inventory
cost of goods sold is $2,900 million
ending inventory is $4,600 million
beginning inventory is $4,100 million
purchases=($2,900-$4,100+$4,600) million
purchases=3400 million
Answer:
$559,500
Explanation:
To find Live Co.'s expected dollar cash flows at the end of this year convert the Euro and Swiss francs amounts to dollar using their respective rates and then add all of the dollar amounts.
Swiss francs in dollars:
Euros is dollars:
Dollar cash flow:
The company's expected dollar cash flows are $559,500.
Answer:
Profit Maximising Quantity = 775
Explanation:
Price P = 35 - 0.02Q
Total Revenue TR = Price x Quantity = P X Q
= (35 - 0.02Q)(Q) = 35Q - 0.02Q^2
Total Cost TC = 8000 + 4Q
Profit = TR - TC
[35Q - 0.02Q^2] - [8000+4Q] = 35Q - 0.02Q^2 - 8000 - 4Q
Profit Function = - 0.02Q^2 + 31Q - 8000
To find out profit maximising Quantity , we will differentiate Profit Function with respect to Q & equate it to 0.
dTR/ dQ = -0.04Q + 31 = 0
Q = 31/0.04 = 775
To verify whether 775 is profit maximising Q, we will do second derivative & check that it is negative.
d^2TR/ dQ^2 = -0.04 i.e < 0 (negative)
So 775 is profit maximising quantity
