1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
anastassius [24]
2 years ago
7

A municipal bond is paying a 6% annual yield. An equivalent risk corporate bond is paying 7%. Investors with a tax rate of ____

or higher would prefer the municipal bond.
Business
1 answer:
faltersainse [42]2 years ago
6 0

Answer:

The correct answer is 25%

Explanation:

To calculate the value of the tax rate to decide on the municipal bond, we must take the information of the annual yield minus the expenses associated with this product, on the interest of the corporate bond:

Tax Rate = 1 - (0.0525 / 0.0700) = 25%

In this way, 25% or more, is a percentage of the tax rate that can make them decide on the municipal bond option.

You might be interested in
Key numbers that financial managers use to calculate ratios usually come from the firm’s
3241004551 [841]
The answer that fits the blank above would be BALANCE SHEET AND INCOME STATEMENT. The balance sheet serves the copy of the liabilities and assets that a company or firm has recorded for a specific period of time. On the other hand, the income statement shows both the profit and loss that the company has. Therefore, it is based on these two that financial managers are able to calculate ratios.
8 0
3 years ago
nyle Corp. owned 100 shares of Beta Corp. stock that it bought in 1993 for $9 per share. In 2014, when the fair market value of
Inga [223]

Answer:

$1100.

Explanation:

We have been given that Nyle Corp. owned 100 shares of Beta Corp. stock that it bought in 1993 for $9 per share. In 2014, when the fair market value of the Beta stock was $20 per share.

Nyle's recognized gain on this distribution would be:

\text{Value of 100 share at a rate of }\$20\text{ per share }-\text{Value of 100 share at a rate of }\$9\text{ per share}

\$20\times100-\$9\times 100=100(\$20-\$9)=100(\$11)=\$1100

Therefore, Nyle's recognized gain on this distribution was $1100.

6 0
3 years ago
For a perfectly competitive firm, which of the following is not true at profit maximization?a. Total revenue minus total cost is
topjm [15]

Answer: Option (d) is correct.

Explanation:

Correct option: Market price is greater than marginal cost.

In a perfectly competitive market, there are large number of buyers and sellers. So, price is determined by the market forces.

At a point of profit maximization, price is equal to the marginal cost and we have to maximize the difference of the total revenue and total cost. It was not seen in a perfectly competitive market that the price is above the marginal cost at a profit maximizing point.

Therefore, option (d) is not true.

5 0
3 years ago
What is meant by assessment? Activities that occur between two or more businesses. Provides services for connecting network reso
stiks02 [169]

Answer:Documenting rules, procedures, and guidelines to be tested against a system.

Explanation:

Assessment means to analyzing  someone or something  in respect of its quality, quantity and other such characteristics. Generally, assessment is done by comparing the actual results with some predetermined criteria .

Assessment is done by firms to know whether there is a problem, where it is and how it can be solved so that future losses could be saved.

Hence from the above we can conclude that the correct option is C .

6 0
3 years ago
Although Lenin wanted to establish, for the short term, a state-capitalist economic system in Russia, which resembled the succes
SashulF [63]

Answer:

war communism

Explanation:

The necessities of the civil war pushed the government to a more radical economic system known as war communism. This were the economic policies that were introduced in Russia in 1918 towards the end of the first World War by Vladimir Lenin which was the leader of Russia at that time. This Economic Policy was terminated in 1921 and was deemed as a failure.

4 0
3 years ago
Other questions:
  • Danielle has $127.02 in her account before making any transactions. Over the course of a week, Danielle makes the following tran
    5·2 answers
  • sarah parents gave her a goal to clean the bathroom twice a day until the end of the year which part of the SMART criteria is mi
    14·2 answers
  • Which type of financial institution is owned by its depositors and borrowers?
    11·1 answer
  • A ___________ makes databases more useful for obtaining information.
    11·1 answer
  • Whats y'alls fav basketball team?
    9·2 answers
  • A 7-year municipal bond yields 4.8%. Your marginal tax rate (including state and federal taxes) is 39.00%. What interest rate on
    5·1 answer
  • Start with the beginning balances for these​ T-accounts: Accounts​ Receivable, $100,000​, Allowance for Uncollectible​ Accounts,
    12·1 answer
  • Divac’s preferred stock is $100 par, 8% stock. If the stock is liquidated or redeemed, stockholders are entitled to $120 per sha
    14·1 answer
  • Assume the following: The standard price per pound is $2.00. The standard quantity of pounds allowed per unit of finished goods
    8·1 answer
  • If a lender wants to yield 5% on a 4.25% fixed rate loan, then what fees should the lender charge?
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!