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pochemuha
3 years ago
6

Assume that Lucas' marginal tax rate is 10% and his tax rate on dividends is 5%. If a dividend-paying stock (with no growth pote

ntial) pays an 6.40% dividend yield, what interest rate would a municipal bond have to offer for Lucas to be indifferent between the two investments from a cash-flow perspective?
Business
1 answer:
polet [3.4K]3 years ago
8 0

Answer:6.08%

Explanation:

Assuming that Lucas' marginal tax rate is 10% and his tax rate on dividends is 5% .If a dividend-paying stock (with no growth potential) pays an 6.40 dividend yield . The interest rate that a municipal bond have to offer for Lucas

Is

6.4% × (1 − .05) = 0,0608

Therefore 6.08%

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Which of the following elements of a process most directly impacts or affects process capabilities? Multiple Choice Activities I
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The correct answer is letter "C": Process Structure.

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The process capabilities are directly affected by the Process Structure. The Process Structure includes the infrastructure a company counts on for handling businesses. Facilities, equipment, and locations determine how the business will be handled and at what scale.

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The team members of the technical team in Wescrult Inc. are working on a crucial project. Their previous manager assigned respon
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3 years ago
terrence’s team is very close and tends to agree on most decisions with little discussion. terrence should be concerned about
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Terrence should be concerned about groupthink.

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Hence, Terrence should be concerned about groupthink as the team agree on most decisions with little discussion.

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4 0
3 years ago
Read 2 more answers
The risk-free rate of return is 8%, the expected rate of return on the market portfolio is 15%, and the stock of Xyrong Corporat
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Answer:

A)

risk free rate = 8%

market rate = 15%

Xyrong's beta = 1.2

pays 40% of income in dividends

latest EPS = $10

ROE = 18%

k = 8% + (1.2 x 7%) = 16.4%

g = ROE x (1 - 40%) = 10.8%

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B)

div0 = $4

div1 = $4.432

price0 = $103

price1 = $79.14 x (1 + g) = $79.14 x 1.108 = $87.69

holding period return = ($4.43 + $87.69 - $103) / $103] = -0.1056 or -10.56%

5 0
3 years ago
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