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hichkok12 [17]
3 years ago
9

Suppose that your marginal federal income tax rate is 30%, the sum of your marginal state and local tax rates is 5%, and the yie

ld on thirty-year U.S. Treasury bonds is 10%. You would be indifferent between buying a thirty-year Treasury bond and buying a thirty-year municipal bond issued within your state (ignoring differences in liquidity, risk, and costs of information) if the municipal bond has a yield ofA) 6.5%.
B) 7.0%.
C) 9.5%.
D) 10.0%.
Business
1 answer:
snow_tiger [21]3 years ago
3 0

Answer:

Option (B) is correct.

Explanation:

Given that,

Marginal federal income tax rate = 30%

Sum of your marginal state and local tax rates = 5%

Yield on thirty-year U.S. Treasury bonds = 10%

Municipal bond has a yield:

= U.S Treasury bonds × (1 - tax)

= 10% × (1 - 30%)

= (10 ÷ 100) × [1 - (30 ÷ 100)]

= (10 ÷ 100) × (70 ÷ 100 )

= (1 ÷ 10) × (7 ÷ 10 )

= (7 ÷ 100)

= 7%

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Product organisation is the grouping of sales and production efforts of a business as per the line of products and services of the business. This kind of organisation is chosen by businesses when they have some different product lines and they require special expertise for marketing and distributing them.

8 0
2 years ago
Why do credit card companies typically require small minimum payment amounts on their customers' monthly credit card statements.
evablogger [386]

Answer:

C) Credit card companies want to increase profits by promoting slower repayment, and actual customer repayments will be anchored by the smaller payment options

Explanation:

It is always a bad idea to only pay the minimum monthly payment on a credit card debt, since the APR charged is much higher than other personal loans. If someone only makes the minimum payment and continues to purchase goods or pay services, their balance will continue to grow.

7 0
3 years ago
Assume that Crane Company uses a periodic inventory system and has these account balances: Purchases $630,000; Purchase Returns
Veseljchak [2.6K]

Answer:

Cost of goods sold =$61,5300

Gross Profit = $144,700

Explanation:

Given the information:

  • Purchase : $630,000
  • Purchase Returns and Allowances $25,700
  • Prchases Discounts $10,900
  • Freight-In $18,300
  • beginning inventory of $45,000
  • ending inventory of $64,600
  • net sales of $760,000

As we the, the fomular for total Goods Available for Sale

=   Beginning Inventory + Purchases + Freight-In - Purchase Returns and Allowances - Purchases Discounts

= $45,000 +  $630,000 + $18,300 - $25,700 - $10,900

= $67,9900

=> Cost of goods sold =  Total Goods Available for Sale - ending inventory

= $67,9900 - $64,600

= $61,5300

=> Gross Profit = Net sales - Cost of goods sold

= $760,000 - $61,5300

= $144,700

Hope it will find you well.

7 0
2 years ago
Read 2 more answers
A+house+sold+for+$120,000,+which+was+96%+of+the+list+price.+what+did+the+house+list+for?
svp [43]

House listed for 4% So, The correct answer is 4% which is 4800

A strong, SEO-focused website that enables you to integrate IDX listings and funnel those leads directly into your CRM may need some initial investment, but it is an essential component of any successful real estate business.

Step-by-step explanation:

120,000 - 115200 = 4800

4800/120,000 = 0.04

0.04 * 100 = 4 percent

What is a listing on a house?

A contract that certifies a real estate agent's or broker's authority to manage the purchase or sale of real property and to be paid a fee or commission for their services. Real estate listings come in a variety of forms.

To learn more about Listing

brainly.com/question/25325640

#SPJ4

5 0
1 year ago
On January 8, an applicant filled out an application for a life insurance policy but did not include the initial premium. The in
const2013 [10]

Answer: January 26

Explanation:

A life insurance policy is simply a contract that an individual has with an insurance company whereby the individual makes premium and in turn, the insurance company would have to give a death benefit, to the beneficiaries of the insurance policy once the insured dies.

Based on the information in the question, the coverage become effective on January 26 which was the day the policy was delivered and the first premium was collected.

3 0
3 years ago
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