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Otrada [13]
3 years ago
9

Assume that John's marginal tax rate is 40%. If a city of Austin bond pays 6% interest, what interest rate would a corporate bon

d have to offer for John to be indifferent between the two bonds?
A. 30%
B. 10%
C. 6%
D. 3.6%
E. None of these
Business
1 answer:
Lisa [10]3 years ago
5 0

Answer:

B. 10%

Explanation:

Given that

Tax rate = 40%

Net tax rate = 6%

Recall that

Gross interest = Net of tax rate / ( 1 - tax rate)

Therefore,

= 0.06 ÷ ( 1 - 0.40)

= 0.06 ÷ 0.60

= 0.1

= 10%

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Todd haitz is the marketing manager for the national basketball association. todd analyzes and tracks his marketing campaigns to
Firlakuza [10]

Answer:

c. marketing campaign roi

Explanation:

KPI stands for Key Performance Indicator, which means the way you are going to measure success or failure of something. ROI means return on investment. Since Todd is measuring how much ticket sales increase <em>compared to</em> how much he spends on ads, the KPI for this campaign is the return on investment.

6 0
3 years ago
What is the future value of 25 periodic payments of $5,440 each made at the beginning of each period and compounded at 8%? (Roun
artcher [175]

Answer:

Explanation:

We would plug the following values in a financial calculator in order to compute the future value,

N = 25

I/Y = = r = 8

PMT = 5440

PV = 0

Fv = ??

FV =  PMT x (1 + r )(  \frac{(1+r)^{N} -1}{r} )

https://www.calculator.net/finance-calculator.html?ctype=endamount&ctargetamountv=1000000&cyearsv=25&cstartingprinciplev=0&cinterestratev=8&ccontributeamountv=5440&ciadditionat1=beginning&printit=0&x=0&y=0

^ Using the financial calculator, FV = $429,512

4 0
3 years ago
1. Characteristics of oligopoly An oligopolistic market structure is distinguished by several characteristics, one of which is m
sergejj [24]

Answer:

----Either similar or identical products --------Difficult entry

----Mutual interdependence

Explanation: An Oligopolistic market is a market characterized by few sellers of large firms who sell either similar or differentiated products. Here, Each firm is mutually interdependent as any action from any firms influences the actions of the rest of the competing firms , therefore decisions are made using strategic planning and consideration as competing firms are ready to counter react to any change in any new market action.

Market entry is difficult Because of the already established customer base of the successful operating firms dominating the market.Also venturing into the market requires high capital, technology or additional government licences. Examples of Oligopolistic firms are oil and gas firms, airlines, mass media etc

8 0
3 years ago
Trent runs a small business in which he manufactures hinges to be used in kitchen and storage cabinetry. He stores the hinges in
Sonbull [250]

<u>Full question:</u>

Trent runs a small business in which he manufactures hinges to be used in kitchen and storage cabinetry. He stores the hinges in his warehouse and delivers them to various cabinet makers prior to them completing the cabinets' construction. Trent is a

A. retailer.

B. intrapreneur.

C. service provider.

D. wholesaler.

E. direct marketer

<u>Answer:</u>

Trent is a  wholesaler

<u>Explanation:</u>

A wholesaler acquires the goods from a producer in mass quantity and re-sells it to retailers in tiny portions. Wholesalers obtain a central position in the retailing course set-up. Warehousing is an essential marketing function offered by the wholesaler.

A wholesaler holds a huge accumulation of goods for retailers. Wholesalers support to maintain prices by regulating stocks according to demand. Many wholesalers manage their warehouses for stocking goods. . He also trades goods to the retailer on account. Thus, at both edges the wholesaler serves as a financier.

6 0
3 years ago
Suppose that a local supermarket sells apples and oranges for 50 cents apiece, and at these prices is able to sell 100 apples an
dezoksy [38]

Answer:

e. price elasticities of demand for apples and oranges are the same over these price ranges

Explanation:

Price elasticity of demand measures the responsiveness of quantity demanded to changes in price.

Price elasticity = percentage change in quantity demanded / percentage change in price

Percentage change in price = (50-40) / 50 = 0.2 × 100 = 20%

Percentage change in quantity demanded of Apples = (120 - 100) / 100 = 0.2 × 100 =

20%

Percentage change in quantity demanded of oranges = (240 - 200) / 200 = 0.2 × 100 = 20%

Price elasticity of demand for oranges = 20% / 20% = 1

Price elasticity of demand for Apples = 20% / 20% = 1

When coefficient of elasticity is equal than one, elasticity of demand is unit elastic.

This implies that the elasticity of demand for Apples and oranges are the same. A change in the price of oranges and apples would lead to the same proportional change for each of the demand for Apples and oranges.

I hope my answer helps you

7 0
3 years ago
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