1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
sasho [114]
3 years ago
9

A municipal bond carries a coupon rate of 8.00% and is trading at par. What would be the equivalent taxable yield of this bond t

o a taxpayer in a 40% combined tax bracket? (Round your answer to 2 decimal places.)
Business
1 answer:
eduard3 years ago
3 0

Answer:

13.33%

Explanation:

The computation of the equivalent taxable yield is shown below:

Data provided in the question

Coupon rate = 8%

Combined tax bracket = 40%

So, the equivalent taxable yield by using the above information is

= (Coupon rate) ÷ (1 - tax rate)

= 8% ÷ 1 - 0.40

= 8% ÷ 0.60

= 13.33%

Basically we divide the coupon rate by the percentage after considering the tax rate

You might be interested in
Which situation is ideal for an entrepreneur to buy an existing business?
hodyreva [135]

Downturn and exceeds. If the economy in a market down turns more busisinesses fail and come up for sale.

5 0
2 years ago
Read 2 more answers
While advocates of a market-oriented economy tend to argue that consumers benefit substantially when firms seek short-term profi
ELEN [110]

Answer: socially wasteful

Explanation:

Product differentiation is when a product is being distinguished from similar products in order to make it more appealing and therefore drive consumers choice.

It should be noted that critics of market-oriented economies may argue that product differentiation is socially wasteful.

4 0
3 years ago
What type of attack is targeted against a smaller group of specific individuals, such as the major executives working for a manu
Mashutka [201]

the answer would most likely be D

6 0
2 years ago
____________ is the ability of a company to pay its debts as they mature. Liquidity Solvency Financial flexibility Insolvency
pshichka [43]

Answer:

Solvency

Explanation:

Solvency is defined as the ability of a company to meet it's long term financial obligations like having the ability to pay off debts as they mature. Solvency measures if a company is able to pay off it's debt in long term.

Although solvency and liquidity are similar, difference is liquidity is more concerned with paying off short term debts.

A company or firm is said to be solvent when the current assets exceeds current liabilities.

4 0
3 years ago
Read 2 more answers
On January 1, 2020, Blue Co. purchased 24,000 shares (a 10% interest) in Elton John Corp. for $1,300,000. At the time, the book
Len [333]

Answer:

$4,465,400

Explanation:

The investment in Elton in 2020                          $1,300,000

share of 2020 net income(10%*$690,000)               <u>$69,000</u>

ending balance of investment in 2020                 $1,369,000

Share of net income 6/30/21 ($480,000*10%)         <u>  $48,000</u>

ending balance of investment 6/30/21                   $1,417,000

Acquisition of investment 7/1/2021                        <u> $2,920,000</u>

Total amount of investment                                     $4,337,000

share of net income 12/31/2021($800,000*30%)       $240,000

Dividends received(48,000+24,000)*$1.55                <u>($111,600)</u>

balance of investment in Elton John Corp                <u> $4,465,400</u>

<u />

In computing the above value,at each point in time the share of Blue Co from net income earned by Elton john corp is added while any dividends received in cash is deducted.

8 0
3 years ago
Other questions:
  • You are a member of the marketing team at the dannon company, inc. the company makes a variety of yogurt products including one
    11·1 answer
  • A woman held fee simple title to a vacant lot adjacent to a business. She was persuaded to make the lot available to the busines
    10·1 answer
  • From the appearance of the utility function, we know that 2 a. Britney is risk averse. b. Britney gains less satisfaction when h
    15·1 answer
  • Mumbai Travel Services provided the following​ information: Direct labor​ rate: $ 40 per hour Predetermined allocation rate for
    5·1 answer
  • The practice of changing prices for products in real time in response to supply and demand conditions is referred to as
    13·1 answer
  • If you wish to pay exactly the same life insurance premium each year, you would choose a:
    15·1 answer
  • Which of the following types of documents is used to ensure that the project has clear boundaries for what is and is not include
    15·2 answers
  • Which of the following factors should be included in the cash flows used to estimate a project's NPV?a. All costs associated wit
    8·1 answer
  • PLEASE HURRY!!! I WILL GIVE BRAINLIEST!!!
    14·1 answer
  • Applying Travis Hirschi’s control theory, which person is most likely to conform to the norms of society
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!