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
Tpy6a [65]
4 years ago
5

Melinda invests $200,000 in a City of Heflin bond that pays 6 percent interest. Alternatively, Melinda could have invested the $

200,000 in a bond recently issued by Surething Inc., that pays 8 percent interest and has risk and other nontax characteristics similar to the City of Heflin bond. Assume Melinda’s marginal tax rate is 25 percent. (Leave no cells blank - be sure to enter "0" wherever required.)
Required:

What is her after-tax rate of return for the City of Heflin bond?
How much explicit tax does Melinda pay on the City of Heflin bond?
How much implicit tax does she pay on the City of Heflin bond?
How much explicit tax would she have paid on the Surething Inc. bond?
What is her after-tax rate of return on the Surething Inc. bond?
Business
1 answer:
vichka [17]4 years ago
3 0

Answer:

What is her after-tax rate of return for the City of Heflin bond?

  • Melinda's after tax rate of return for the City of Heflin bonds = $200,000 x 6% = $12,000. Interest revenue from city bonds is not taxed.

How much explicit tax does Melinda pay on the City of Heflin bond?

  • $0

How much implicit tax does she pay on the City of Heflin bond?

  • $4,000. The tax difference between the yields of the city bond vs Surething bond.

How much explicit tax would she have paid on the Surething Inc. bond?

  • ($200,000 x 8%) x 25% = $4,000

What is her after-tax rate of return on the Surething Inc. bond?

  • ($16,000 - $4,000) / $200,000 = $12,000 / $200,000 = 6%

You might be interested in
A good, service, or idea consisting of a bundle of tangible and intangible attributes that satisfies consumers' needs and is rec
belka [17]
The answer of the above question is “product”.
3 0
3 years ago
What are four critical project attributes that the project manager must integrate?
Paul [167]

The four critical project attributes that the project manager must integrate.

powerful assignment control entails having the following attributes that are vital in turning into an effective assignment manager:

powerful communique capabilities.

strong leadership skills.

Accurate choice maker.

Technical understanding.

Inspires a shared vision.

Assignment management is the technique of leading the paintings of a team to reap all mission dreams inside the given constraints. This facts is normally defined in project documentation, created at the beginning of the development system. The number one constraints are scope, time, and budge.

A mission supervisor is accountable for the making plans, procurement, execution and finishing touch of a assignment. The challenge supervisor is in fee of the entire venture and handles everything involved, such as the task scope, handling the undertaking crew,

Learn more project manager here:brainly.com/question/6500846

#SPJ4

6 0
1 year ago
The recession of 2007-2009 made many consumers pessimistic about their future incomes. How does this increased pessimism affect
Korvikt [17]

Answer:

C) This will shift the aggregate demand curve to the left.

Explanation:

The demand curve is graphed on one axis being price level and the other axis being the total amount of goods and services purchased.

If consumer is pessimistic about their future incomes, they will want to save more and spend less, so they will demand less less goods and services at any price level than they used to before the recession (at that corresponding price level) ==> demand curve shift left.

4 0
3 years ago
n investment adviser has 3 managing partners and 3 investment adviser representatives. All of the partners have completed the Ce
dusya [7]

Answer: permitted since it is true

Explanation:

From the question, we are informed that an investment adviser has 3 managing partners and 3 investment adviser representatives and that all of the partners have completed the Certified Financial Planner program and received the designation.

We are further told that the 3 IARs have been enrolled in a CFP preparation course and are scheduled to take the next CFP exam. The IA publishes an advertisement that states: "All of our partners are Certified Financial Planners."

This advertisement is allowed because the advertisement is true. Since, we are already given the information that the 3 partners of the firm have done their Certified Financial Programs, therefore, the statement is true and not a misleading one.

5 0
3 years ago
Create a fictitious product. Be creative — it can be anything you want, including clothing, a beverage, food, a gadget, a video
skelet666 [1.2K]

Answer:

A video game:

Explanation:

Target your audience: kids love videos games, and crazy colors. Grab your audiences attention

3 0
3 years ago
Read 2 more answers
Other questions:
  • Critics of ansoff's matrix mention that the matrix does not:
    9·1 answer
  • The LaGrange Corporation had the following budgeted sales for the first half of the current year:
    12·1 answer
  • .Many of the same environmental factors, such as cultural factors, that operate in the domestic market also exist internationall
    14·1 answer
  • According to John Maynard Keynes:
    5·1 answer
  • Sarah and stephanie are determined to make their business plan look as professional as possible. in order to make sure it's orga
    8·1 answer
  • Department G had 3,600 units 25% completed at the beginning of the period, 11,000 units were completed during the period; 3,000
    8·1 answer
  • Investing $2,000,000 in TQM's Channel Support Systems initiative will at a minimum increase demand for your products 1.7% in thi
    15·1 answer
  • 4. The amount of money charged for a certain amount of insurance coverage <br> is _____
    8·1 answer
  • Ivanhoe Company purchased merchandise inventory with an invoice price of $10200 and credit terms of 2/10, n/30. What is the net
    7·1 answer
  • A group of customers that a business decides to focus its marketing efforts and, ultimately, its products on is a _____. target
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!