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Romashka-Z-Leto [24]
3 years ago
10

The interest on some municipal bonds is tax free, in contrast to the interest on corporate bonds. If the current annual interest

rates on otherwise similar(i.e., maturity, credit risk, liquidity) municipal and corporate bonds are 1.48\%1.48% and 1.80\%1.80%, respectively, what is the implied tax rate?

Business
1 answer:
igomit [66]3 years ago
4 0

Answer:

17.77%

Explanation:

Please see attachment

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For a Windows laptop, what is the best way to save power when the computer will not be used for an extended period?
Lorico [155]

Answer:

b turn off by power button

3 0
3 years ago
If a firm experiences productivity gains from employee specialization, its marginal cost_________.
postnew [5]

Answer:

correct option is C. decreases at a decreasing rate.

Explanation:

solution

when an organization gain productivity than its marginal cost will be decreases at a decreasing rate  

as here when initial specialization of employee is lead to an significant reduction in the marginal costs though the more specialized people get

and less additional amount is save due to the  specialization

so here correct option is C. decreases at a decreasing rate.

4 0
3 years ago
Droz's Hiking Gear, Inc. has found that its common equity capital shares have a beta equal to 2.5 while the risk-free return is
11111nata11111 [884]

Answer:

see explanation

Explanation:

Weighted Average Cost of Capital (WACC) is the cost of a firm from permanent sources of capital pooled together.

WACC = Cost of equity x Weight of equity + Cost of Debt x Weight of Debt + Cost of Preference Stock x Weight of Preference Stock

where,

Cost of equity = Return on Risk free rate + Beta x Risk Premium

                        = 9.00 % + 2.5  x (14.00 % - 9.00%)

                        = 21.50 %

Cost of debt :

<em>similar</em>

N = 7 x 2 = 14

p/yr = 2

pmt = ($787.22 x 8%) ÷ 2 =

fv = $787.22 x number of bonds

pv = $80,000,000

<u>Always use the after tax cost of debt :</u>

after tax cost of debt = interest x ( 1 - tax rate)

7 0
2 years ago
In what areas do federal agencies regulate to ensure safety and the general
NeTakaya

Answer:

d. All of the above

Explanation:

Government regulations are the rules that players in an industry must abide by. In a free-market economy like the US, the government's main role is to regulate economic activities. The government enforces regulation through its various agencies.

The areas of regulations include but are not limited to

  1. Protecting consumers from undue exploitation by businesses,
  2. Encourage fair business competition
  3. Promote a healthy, safe work environment for employees
  4. Promote and sustain a clean environment
  5. Private data protection and security
6 0
3 years ago
Select all the reasons to keep your money in a financial institution.
mr_godi [17]
All of them :) All those reasons.

5 0
3 years ago
Read 2 more answers
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