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
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%

You might be interested in
During 2019, Enrique had the following transactions: Salary $70,000 Interest income on Xerox bonds 2,000 Inheritance from uncle
expeople1 [14]

Answer:

The correct answer is B

Explanation:

Calculation of AGI for 2019 -

Salary Income                                                                                $70,000

Interest income on Xerox bonds                                                 $2,000

Inheritance from uncle                                                                  $ 40,000

Deduction : Capital Loss                                                        ($2500)

Contribution to traditional IRA                                                 ($5500)

Inheritance from uncle                                                              ($40,000)

Total =                                                                                          $64,000

6 0
3 years ago
The emergency/parking brake is a hydraulic system that is automatically activated when the driver depresses the service brake pe
GrogVix [38]

False for sure you don't immediately stop when you let off the brake pedal.
6 0
3 years ago
Read 2 more answers
After achieving a result, good managers invest time in reflecting on what went well and what could have gone better. They consid
BartSMP [9]

Answer: d. After each semester, you asked your adviser to review your progress to ensure you remained on track for your anticipated graduation date

Explanation:

Efficiency is measurable and has to do with the ability to achieve a goal or get a result that's desired and avoid wastage of efforts or resources.

With regards to the explanation above, the statement that relate specifically to your efficiency is asking the level adviser to review ones progress in order to show that one is on track.

This shows that the person wants to achieve the goal of graduation and is putting all of his efforts towards that.

3 0
3 years ago
Consider a business that can be run using a make-to-stock or make-to-order process. Further suppose that your demand is 10000 pe
Scorpion4ik [409]

The best choice would be Choose Make-to-Order Process.

Option b

<u>Explanation:</u>

Make to order (MTO) also known as made to order, is a type of business production strategy which allows the customers to buy the products that are designed or customised based on their own specifications.

In simpler words, this process involves the production of customised goods after the consent of the consumers.

Here it has been mentioned that the demand is 10,000 units per month and the capacity of the company production is 15,000 units. So, it can be inferred that the company would have enough time to produce the goods based on the desirability of the customers. (customised products).

Therefore, the best choice would be Choose make-to-order process.

6 0
3 years ago
If ideal weather conditions result in a bumper crop of Florida oranges, then the a. supply of oranges will increase and the pric
8090 [49]

Answer:

a. supply of oranges will increase and the price of oranges will fall.

Explanation:

The crop will have impact on the producer of oranges, their field  will have a better yields so, more orange supply. The supplier fixed cost will be distribute among more orange thus, her average cost will be lower.

If the cost is lower, then the price will decrease as well. This will generate an equilibrium cost at more quantity with a lower price.

4 0
3 years ago
Other questions:
  • A stadium brings in $16.25 million per year. it pays football-related expenses of $13.5 million and stadium expenses of $2.7 mil
    14·1 answer
  • An internet consulting company uses its website to allow its corporate clients to obtain information, analyze data, and ask ques
    12·1 answer
  • Price discrimination:A. by firms selling to final consumers is illegal, but it is usually legal in selling to intermediaries.
    12·1 answer
  • Ivanhoe Choice sells natural supplements to customers with an unconditional sales return if they are not satisfied. The sales re
    13·1 answer
  • For studying demand relationships for a proposed new product that no one has ever used before, what would be the best method to
    10·1 answer
  • Which strategy is most likely to help a person gain confidence?
    6·2 answers
  • What is the main difference between centerfire and rimfire ammunition?
    12·1 answer
  • Glenda runs a flower delivery service with six people. Quite recently, the business has started suffering and there has been an
    8·2 answers
  • Investors can postpone or avoid income taxes by investing through individual retirement accounts.
    14·1 answer
  • For a branded house strategy, the following is often essential: A. Increased shelf presence in retail store B. One product that
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!