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sasho [114]
3 years ago
6

A 5-year corporate bond yields 10.70%. A 5-year municipal bond of equal risk yields 6.50%. Assume that the state tax rate is zer

o. At what federal tax rate are you indifferent between the two bonds? (Round your final answer to two decimal places.)
Business
1 answer:
Ksenya-84 [330]3 years ago
4 0

Answer:

The multiple choices are as follows:

a.

25.40%

b.

29.03%

c.

39.25%

d.

33.98%

e.

27.38%

The correct option is C,39.25% federal tax rate

Explanation:

In determining the federal tax that one would be indifferent in choosing between the two bonds, we equate the yield of the two bonds as follows with tax element being deducted from corporate bond yield:

6.50%=10.70%*(1-t)

The t is the tax rate which is the unknown

divide both sides by 10.70%

6.50%/10.70%=1-t

0.607476636 =1-t

t=1-0.607476636

t=0.392523364 =39.25%

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A company purchased factory equipment on April 1, 2022 for $69600. It is estimated that the equipment will have a $12000 salvage
goldfiish [28.3K]

Answer:

$4,320

Explanation:

Calculation for the amount to be recorded as depreciation expense at December 31, 2022

Using this formula

Depreciation expense at December 31, 2022=[(Factory equipment - Salvage value) ÷ 10]× 9/12

Let plug in the formula

Depreciation expense at December 31, 2022=[($69,600 - $12,000) ÷ 10] × 9/12

Depreciation expense at December 31, 2022=$5,760×9/12

Depreciation expense at December 31, 2022=$4,320

Note that 1 April 2022 to 31st December 2022 will give us 9months

Therefore Using the straight-line method of depreciation, the amount to be recorded as depreciation expense at December 31, 2022 is:$4,320

3 0
2 years ago
Khalid has just found out that his friend Jason is terminally ill.This has made him feel sad and lonely at the thought of living
Paha777 [63]

Answer:

B) Anticipatory Grief

Explanation:

As Khalid has found out that his friend Jason is terminally ill. This has made him feel sad and lonely at the thought of living life without his friend. Khalid's feelings best represent the concept of anticipatory grief which refers to the feeling of sadness and grief occurring before the actual happening of that loss. We become sad and emotional even before the actual happening of some incident. For example, when our dear friend is in hospital after a sever accident, then we start feeling this anticipatory grief that the chances are more that he will be dead soon so we feel more grief and sadness.

6 0
3 years ago
The following information was available for Kingbird, Inc. at December 31, 2017: beginning inventory $70000; ending inventory $1
photoshop1234 [79]

Answer:

Inventory turnover ratio = 7.2 times

Explanation:

Given:

Beginning inventory = $70,000

Ending inventory = $108,000

Cost of goods sold = $644,000

Sales = $888,000

Find:

Inventory turnover ratio

Computation:

Average inventory = [Beginning inventory + Ending inventory] / 2

Average inventory = ($70,000 + $108,000) / 2

Average inventory = $89,000

Inventory turnover ratio =  Cost of goods sold / Average inventory

Inventory turnover ratio = $644,000 / $89,000

Inventory turnover ratio = 7.2 times

5 0
3 years ago
Caroline is conducting a share point analysis for Bloomingdale's. First, she estimates total industry sales by compiling a list
Pepsi [2]

The correct answer is B) Compute gross margin per sales point.

Caroline is conducting a share point analysis for Bloomingdale's. First, she estimates total industry sales by compiling a list of all department stores and their sales for the previous year. Next, she estimates Bloomingdale's market share within the industry. To find the value of one share point, Caroline must <em>compute the gross margin per sales point.</em>

Gross margin is part of the income statement that firms or industries need to elaborate every year. This metric indicates a detailed description of a company's revenues, expenses, and profit. When preparing a budget, gross margin defines the limits a company must take into account. That is why Caroline must pay close attention to the calculation and computing.

3 0
3 years ago
A company received $11,000 cash in exchange for 200 shares of the company’s common stock. What would the effect of this transact
MAVERICK [17]

Answer:

B. $11,000 increase in Assets; No effect on Liabilities; $11,000 increase in Stockholders’ Equity

Explanation:

As the company received cash in exchange for the common stock. So, it affect the accounting equation which is shown below:

Total Assets = Total liabilities + Total  stockholder equity

The journal entry is shown below for better understanding:

Cash A/c Dr XXXXX

     To Common stock XXXXX

     To Additional Paid-in capital - in excess of  par XXXXX

(Being cash is received)

So, it would not impact the total liabilities

7 0
3 years ago
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