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MissTica
3 years ago
7

Assume you are in the 35 percent tax bracket and purchase a municipal bond with a yield of 7.25 percent. Use the formula present

ed in chapter 11 of your textbook to calculate the taxable equivalent yield for this investment. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
Business
1 answer:
balu736 [363]3 years ago
3 0

Answer:

before tax corportate bond equivalent: 11.15%

Explanation:

The municipal bond are tax-free making them more attractive than normal corporate bonds.

thus, the municipal bond rate should be compare with the after tax rate of a corporate bond:

before tax rate ( 1 - tax rate) = after tax rate

<u>For this case:</u>

the after tax rate is 7.25%

and the tax bracket is 35%

before taxes ( 1 - 0.35) = 0.0725

0.0725/.65 = 0,1115384 = <em>11.15%</em>

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The popularity of a new type of jeans

hope this helps!

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6 0
3 years ago
All of a company's depreciation, property taxes, and insurance premiums are considered manufacturing overhead.
Irina18 [472]

All of a company's depreciation, property taxes and insurance premiums are considered manufacturing overhead (MOH) ----- False.

What is considered manufacturing overhead?

Manufacturing overhead (MOH) cost is the sum of all the indirect costs which are incurred while manufacturing a product. It is added to the cost of the final product along with the direct material and direct labor costs.

What does manufacturing overhead include?

Manufacturing overhead includes indirect materials, indirect labor, depreciation on factory buildings and machines, and insurance, taxes, and maintenance on factory facilities. Costs that are a necessary and integral part of producing the finished product.

. Direct labor :

Is the cost of the workers who make the product. The cost of supervisory personnel, management, and factory maintenance workers, although they are needed to operate the factory, are classified as indirect labor because these workers do not use the direct materials to build the product.

Learn more about company's depreciation :

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7 0
1 year ago
You are offered the following investments: You can invest $500 today and receive $600 in 5 years. The investment is low risk. Yo
grin007 [14]

Answer:

500

Explanation:

6 0
3 years ago
Last year, Richmon Company produced 10,000 units and sold 6,000 units at a price of $20. Costs for the last year were as follows
Goshia [24]

Answer:

The correct answer is B: $46,400

Explanation:

The difference between absorption and variable costing is that the first one includes fixed manufacturing overhead in the manufacturing cost.

Giving the following information:

Absorption costing:

Direct materials= 30,000

Direct labor= 38,000

Variable factory overhead= 8,000

Fixed factory overhead= 40,000

Total= $116,000

Unitary cost= 116000/10000= $11.6

Ending finished inventory= 4000*11.6= $46,400

5 0
3 years ago
Recently, businesses have experienced debate over ___________, the practice of discriminating against a dominant or majority gro
Gnom [1K]

The correct answer would be, Reverse Discrimination.

Recently, businesses have experienced debate over Reverse Discrimination, the practice of discriminating against a dominant or majority group of persons.  

Explanation:

When people or group of people who were discriminated against previously, are being favored, then this practice is known as the Reverse Discrimination.

For example, reverse discrimination can be caused in an organization where previously discriminated Muslims are now being preferred and hired by the company.

Similarly the same practice can be seen in the companies where females are now being hired(even though the males are more qualified for the job) who were previously discriminated against men.

Reverse Discrimination is not a fair practice, because it is still a Discrimination.

Learn more about Reverse Discrimination at:

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7 0
3 years ago
Read 2 more answers
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