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Julli [10]
2 years ago
9

A 5-year corporate bond yields 9.70%. A 5-year municipal bond of equal risk yields 6.5%. Assume that the state tax rate is zero.

At what federal tax rate are you indifferent between the two bonds?a. 25.40%
b. 29.03%
c. 32.99%
d. 33.98%
e. 27.38%
Business
1 answer:
Roman55 [17]2 years ago
3 0

Answer:

c. 32.99%

Explanation:

Risk yield = bond yield*(1 - Federal tax rate)

    6.50% = 9.70%*(1 - Federal tax rate)

1 - Federal tax rate = 6.50%/9.70%

Federal tax rate = 1 - 6.50%/9.70%

                           = 32.99%

Therefore, The federal tax rate that you are indifferent between the two bonds is 32.99%

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MC Qu. 98 At the beginning of the recent... At the beginning of the recent period, there were 1,470 units of product in a depart
agasfer [191]

Answer:

Using the weighted average method, the equivalent units produced by the department were:

= 8,760 units.

Explanation:

a) Data and Calculations:

                                         Units    Conversion  

 Ending inventory             1,560

Units completed             8,370

Units available                9,930

Beginning inventory        1,470         35%

Additional units started 8,460

Equivalent units of production:

Units completed            8,370         8,370 (100%)

Ending inventory           1,560            390 (25%)

Equivalent units of production       8,760

4 0
3 years ago
You are planning your retirement in 15 years. You plan to retire with $3,000,000 and your retirement account earns 4.8% compound
Maslowich

Answer:

The retirement fund will last for 33 years and 7 months

Explanation:

We need to solve for time in an ordinary annuity

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\

C  $15,000.00

rate 0.004 (4.8% divide by 12 month)

PV $3,000,000

time n

15,000 \times \frac{1-(1+0.004)^{-n} }{0.004} = 3,000,000\\

we clear for n as much as we can and solve

(1+0.004)^{-n}= 1-\frac{3,000,000\times0.004}{15,000}

(1+0.004)^{-n}= 0.20

now we use logarithmic properties to solve for n:

-n= \frac{log0.2}{log(1+0.004)

-403.16  

this will be a value in months so we divide by 12 to get it annually

403/12 = 33,5833

we convert the residual to months:

0.5833 x 12 = 6.996 = 7 months

6 0
3 years ago
The main difference between marketing research and a marketing information system is that the MIS is an information-gathering pr
Annette [7]

Answer:

False

Explanation:

Marketing research is a term that is used to refer to the process of systematically designing, collecting, interpreting, and reporting information. It is used to help marketers solve specific  marketing problems, and it is also used to take advantage of market opportunities. Marketing research is used to gather information which are not currently available to the decision makers.

A marketing information system (MIS) refers to a system in which marketing data is formally gathered, stored, analysed and distributed to managers in accordance with their informational needs on a regular basis. A management information system is systematically designed to support marketing decision making.

6 0
2 years ago
When working with international firms, U.S. businesses Multiple Choice expect socially responsible behavior from their business
Brilliant_brown [7]

When working with international firms, U.S businesses expect socially responsible behavior from their business partners.

<h3><u>Why do U.S businesses increasingly focus on international businesses?</u></h3>

American businesses are aware that doing business abroad will boost productivity and broaden their population, which will promote economic expansion. Since the beginning of time, there have been numerous international exchanges, and American businesses now recognize the advantages of offering their services abroad.

To cut costs, some US companies relocate abroad. To grow their business, other companies venture abroad. Many companies can successfully operate on a global scale.

You can learn more about international business using this link:

brainly.com/question/15054188

#SPJ4

4 0
2 years ago
Which of the following asset accounts is increased when a receivable is collected? a.Accounts Payable b.Supplies c.Cash d.Accoun
Nikitich [7]

Answer:

(C) Cash

Explanation:

Receivables means deptors. These are obligations that has been honoured and value given, but you're yet to get cash. Receivables are seen as such. So the things you've given value to and you're yet to receive cash or payment for are receivables.

So when receivables are collected, then the asset account Cash is increased.

On the Delivery of goods or Services, the company debits Accounts Receivable and credits what is known as Sales Revenues or Service Revenues. When an account receivable is collected say 30 days later, the account receivables is reduced and the Cash or bank account is increased.

7 0
3 years ago
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