Answer:
Municipal bond
Explanation:
We can clearly find out which bond to select by finding their equivalent taxable yield.
DATA
Coupon rate (corporate bond) = 6.25%
Coupon rate (municipal bond) = 4.75%
Marginal income tax = 28%
Equivalent taxable yield of municipal bond = coupon / (1-tax rate)
Equivalent taxable yield of municipal bond = 4.75% / (1-0.28)
Equivalent taxable yield of municipal bond = 6.6%
Hence municipal bond must be selected having a higher equivalent taxable yield as compared to corporate bond.
Answer
The answer and procedures of the exercise are attached in the following archives.
Explanation
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.
Answer:Telling style leadership
Explanation: According to Hersey and Blanchard’s situational model of leadership, The telling style is an authoritarian type of leadership ususally directed or used with low- maturity followers where the leader gives explicit directions and instructions on how tasks should be performed and orders are not subject to interpretation
This type of leadership usually occurs when the leader has an expertise in the area which he or she specializes and so gives clear, precise quick and controlled instructions for efficient implementation.
Here, Sandra uses the Telling style leadership to accomplish tasks and performances.
Answer:
Explanation:
Last year Current year
Selling Price 10 10
Varaible Price 5 6
Contribution Margin 5 4
Break even is the point where total cost is equal to total revenue mean no profit and loss.
company earns the contribution margin after covering the variable cost, now only fix cost remains for break even.
Break Even using FIFO method : first In first out system
Fix Cost = 86000
contribution from opening units(6000*5) = 30000
Remaining Fix cost that should be Covered from
current year products = 56000
Units to be sold for break-even ( 56000/4) = 14000
so we have break even units 6000+14000 = 20000
Fix cost = -86000
Opening 6000*5 = 30000
Current 14000*4 = 56000
Profit = 0
Break Even using LIFO method : Last in first out
Fix Cost = 86000
Break even = Fix Cost / Contribution margin
Break even = 86000/4 =21500
current production is 24000 which is higher than break even units so we can cover the fix cost from current year production because company is using lifo method. we do not need opening units for the break even.
