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irina1246 [14]
2 years ago
12

Suppose you want to invest $10,000. You have two options: (1) Invest in California municipal bonds with an expected rate of retu

rn of 13.00%, or (2) invest in J and K Corp.’s bonds with an expected rate of return of 19.50%. Assume that your decision is based on a tax perspective. If everything else is the same for both bonds, at what tax rate would you be indifferent between these two bonds?
Business
1 answer:
galina1969 [7]2 years ago
8 0

Answer:

a tax-rate for 33.33% will make both investment yield an equal return after-taxes

Explanation:

the municipal bonds aare tax free, while the J and K Corp.'s bond are subject to tax income.

threfore to be indifferent between these bonsd the tax rate will equal the corp bon rate after taxes with the municipal bond:

pretax x (1 - t ) = after tax

0.195 x (1-t) = 0.13

1 - 0.13/0.195 = t

t = 1/3 = 33.33%

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Carla Vista Energy Company owns several gas stations. Management is looking to open a new station in the western suburbs of Balt
tatuchka [14]

Answer:

The present Value of the growing annuity= $1,158,092.68  

Explanation:

The present value of the growing annuity is going to be computed as follows:

PV = A/(r-g) × (1- (1+g/1+r)^n)

A- annual cash flow- $87,460

g- growth rate - 6.3%

n- number of years =73

r- discount rate - 13.8%

I will break out the formula into two parts to make the workings very clear to follow. So applying this formula, we can work out the present value of the growing annuity  as follows.  

A/(r-g)  = 87,460/(0.138-0.063) =1,166,133.33

(1- (1+g/1+r)^n)  = 1- (1.063/1.138)^73 =0.9931

PV = A/(r-g) × (1- (1+g/1+r)^n)

166,133.33× 0.9931 =  1,158,092.68  

The present Value of the growing annuity= $1,158,092.68  

6 0
3 years ago
A _____ is an integrated collection of data that can include seemingly unrelated information, no matter where it is stored in th
Deffense [45]

A ​data warehouse is an integrated collection of data that can include seemingly unrelated information, no matter where it is stored in the company.

An enterprise data warehouse (EDW), sometimes referred to as a data warehouse (DW or DWH) in computing, is a system used for reporting and data analysis and is regarded as a key element of business intelligence.

data warehouse DWs serve as a central repository for combined data from a variety of sources.

They keep both recent and old data in a single location that is utilized to provide analytical reports for employees across the whole company.

The operational systems upload the data that is kept in the warehouse (such as marketing or sales).

Before being used in the data warehouse for reporting, the data may go via operational data storage and require data cleansing for extra activities to ensure data quality.

Learn more about the data warehouse here:

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8 0
1 year ago
In a wholly owned or closely held corporation, there really is little distinction between the functions of a board of directors
umka21 [38]

It is true that there is little distinction between the functions of a board of directors and those of a board of advisers in a wholly owned or closely held corporation.

<h3>What is a board of directors and board of advisors? </h3>

A board of directors refers to the elected group of individuals that represent shareholders while the board of advisors refers to the group of individuals who are appointed to provide counsel businesses.

In conclusion, it is true that there is little distinction between the functions of a board of directors and those of a board of advisers in a wholly owned or closely held corporation.

Read more about board

<em>brainly.com/question/4771644</em>

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2 years ago
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Integrated carriers (truck-air) like UPS and Federal Express are able to capture a larger market share because they:
Alik [6]

Options :

A. utilize their own aircraft.

B. have extensive ground networks.

C. have accurate, real-time tracking systems

D. all of the above

Answer:

D

8 0
3 years ago
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