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irina1246 [14]
3 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]3 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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Thus the answer is letter A.
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6 0
3 years ago
Which conclusion is accurately reflected in the data table? (5 points)
Anna11 [10]

Answer:

As your level of education increases, your income potential also increases.

Explanation:

As per the graph, the highest earners are holders of a doctoral degree, professional degrees, and master degrees. These are highly educated individuals.

At the bottom end, the lowest earners are those with high school diplomas and below.

The graphs clearly illustrate that acquiring a high level of education increases the probability of increased earning.

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3 years ago
Q 8.2: On June 15th, Buehler Company sells merchandise on account to Chaz Co. for $1,000, terms 2/10, n/30. On June 20th, Chaz C
Pavel [41]

Answer:

C : $686

Explanation:

The computation of the cash received amount is shown below:

= (Sale value of merchandise - returned merchandise) × (100 - discount rate)

= ($1,000 - $300) × (100 - 2%)

= $700 × 98%

= $686

Since the payment is made within 30 days, so the company could avail the discount of 2% and the return goods should be deducted so that the actual amount of cash received can come.

8 0
3 years ago
Halo effect and "Devil's Horns" are associated with which selection activity? Select one: a. Background checking b. Preliminary
Marysya12 [62]

Answer:

C. Interviews

Explanation:

In an interview, there is personal contact between the interviewer and the person interviewed. In this context, first impressions are very important (this is why people are advice to dress and groom themselves well before going to an interview).

A postive first impression can result in a general positive bias when analyzing the person. This is the halo effect and can become helpful in securing the job.

On the contrary, a negative first impression can result in a negative bias when analyzing the person. Negative qualities are ascribed to the person without much basis. This is tthe Devil's Horns effect and can result in the loss of the job opportunity.

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3 years ago
Which of the following does not belong in the M2 category? near money money market mutual funds deposits in savings currency hel
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Currency held in bank vaults.

Hope this helps :)
4 0
3 years ago
Read 2 more answers
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