To pursue a career in business information management, you need a degree or certification in____

An investor recently purchased a corporate bond that yields 9%. The investor is in the 36% combined federal and state tax bracke

kifflom [539]

Answer:

The bonds after tax yield is given as Pre tax yield X (1-tax rate)

After Tax Yield = 9% X (1-0.36) = 9%X0.64=5.76%

Answer: 5.76%

Explanation:

The after-tax yield of any financial instrument such as a bond or even stock dividends is the effective yield after the applicable taxes have been paid. Higher the tax rate, lesser is the after-tax yield for the investor.

To calculate your after-tax yield, you need to know both the rate of return on your investment and the tax rate that applies to those profits. First, convert your tax rate that applies to the earnings to a decimal by dividing by 100. Second, subtract the result from 1 to calculate the portion of your earnings that you get to keep after you pay taxes on them. Third, multiply the result by the rate of return on the investment to calculate your after-tax yield.

For example, say that you want to calculate the after-tax rate of return on your certificate of deposit. If your rate of return is 3 percent and the tax rate applied to that interest is 24 percent, start by dividing 24 percent by 100 to get 0.24. Second, subtract 0.24 from 1 to get 0.76 – the portion that you get to keep after accounting for taxes. Finally, multiply 0.76 by your overall rate of return of 3 percent to find your after-tax yield is 2.28 percent.

5 0

4 years ago

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There are several economic explanations for why trade is so commonplace. Match each of the examples listed below with the econom

levacccp [35]

Answer:

Explanation:

A. Swiss watch manufacturers producing high quality time pieces.

1. Comparative Advantage

B. U.S. auto makers offering a great variety of makes and models of cars.

2. Specialization or Economies of Scale

C. The ability of developing nations to export textiles to wealthier countries.

US auto makers manufacture on large scale so they have economies of scale . Moreover they are technically superior because of specialisation .

1. Comparative Advantage

wealthier nation too can export textile but that will be costlier so developing nation has comparative advantage of cheap labour.

D. Doctors becoming experts in one type of medicine rather than becoming proficient in many areas.

2. Specialization or Economies of Scale

E. Your economics professor paying a gardener to do work that he/she could do on their own.

1. Comparative Advantage

Professor can earn more by using his time as a professor so he has comparative advantage .

5 0

3 years ago

Kubin Company’s relevant range of production is 13,000 to 18,000 units. When it produces and sells 15,500 units, its average cos

Otrada [13]

Answer:

1. $296,050

2. $141,050

3. $330,300

4. $135,300

Explanation:

Given that,

When company produces and sells 15,500 units;

Direct materials = $ 7.40

Direct labor = $ 4.40

Variable manufacturing overhead = $ 1.90

Fixed manufacturing overhead = $ 5.40

Fixed selling expense = $ 3.90

Fixed administrative expense = $ 2.90

Sales commissions = $ 1.40

Variable administrative expense = $ 0.90

1. Total amount of product costs:

= Number of units × (Direct Material Per Unit + Direct Labor Per Unit + Variable Manufacturing Overhead + Fixed Manufacturing Overhead Per Unit)

= 15,500 × ($ 7.40 + $ 4.40 + $ 1.90 + $5.40)

= 15,500 × $19.10

= $296,050

2. Total Amount of Period Costs:

= Number of Units × (Fixed Selling Expense Per Unit + Fixed Administrative Expense Per Unit + Sales Commissions Per Unit + Variable Administrative Expense Per Unit)

= 15,500 × ($ 3.90 + $ 2.90 + $1.40 + $0.90)

= $141,050

3. Total amount of product costs at 18,000 units:

= Direct Material + Direct Labor + Variable Manufacturing Overhead + Fixed Manufacturing Overhead

= (18,000 × 7.40) + (18,000 × 4.40) + (18,000 × 1.90) + (15,500 × 5.40)

= $133,200 + $79,200 + $34,200 + $83,700

= $330,300

4. Total amount of period costs at 13,000 units:

= Fixed Selling Expense + Fixed Administrative Expense + Sales Commissions + Variable Administrative Expense

= (15,500 × $3.90) + (15,500 × $2.90) + (13,000 × $1.40) + (13,000 × $0.90)

= $60,450 + $44,950 + $18,200 + $11,700

= $135,300

4 0

4 years ago

Hemisphere Corp. is considering a Build-Operator-Transfer (BOT) contract to construct and operate a large dam with a hydroelectr

Anna007 [38]

Answer:

The dam should be constructed. The investment discounted payback is 25 years.

Explanation:

We have to make a cash flow for this case with the given data. See the document attached.

We consider an Initial cost of 30 millions in period 0, then we have every periods benefit of 2.800.000 and 100000 direct cost.

With those, is obtained net cash flow for each year (period), if we consider the given rate of interest, can be calculated the discounted cash flow

To know when this project covers all the investment, we have to consider the cumulative discounted cash flow. We have to see in the cash flow chart when the cumulative discounted cash flow break the 0 (became higher than 0).

In this case , that will be at period 25. So we have to wait 25 years to recover the initial cost. Considering that the dam usually has a lifetime higher than that time, the project at this scenario, should be done.

Download xlsx

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4 years ago

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For whom were the first ready-to-wear suits made in America?

Naya [18.7K]

c. Sailors would be the correct answer

3 0

3 years ago

To pursue a career in business information management, you need a degree or certification in_____information system,or an