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
Citrus2011 [14]
3 years ago
9

A bond issued by the State of Pennsylvania provides a 5.75% yield. What yield on a Synthetic Chemical Company bond would cause t

he two bonds to provide the same after-tax rate of return to an investor in the 35.00% tax bracket
Business
1 answer:
sineoko [7]3 years ago
5 0

Answer: 8.85%

Explanation:

GIVEN THE FOLLOWING ;

Municipal bond yield = 5.75%

After-tax rate = 35%

In other to produce the same after tax rate, What should be the yield of the synthetic company bond;

Assume yield on synthetic company bond = SC yield ;

We can connect our assumption using the mathematical relation below;

Municipal bond yield = after tax bond yield

5.75% = SC yield (1 - tax rate)

5.75% = SC yield (1 - 35%)

5.75% = SC Yield × 65%

SC yield = (5.75/65)%

SC yield = 0.08846%

SC yield = 8.85%

You might be interested in
Wealth creating transactions are more likely to occur a. ​With private property rights b. ​With contract enforcement c. Both a a
Marina86 [1]

Answer: C

Explanation:

Wealth is the gradual gathering of profits, assets or income over a period of time. It is the gradual increase in ones assets over a sustained period.

Wealth creating transactions can be found both in contract enforcement and private property rights. The prosperity and economic development of a country can be attributed to the respect accorded to its citizens property rights.

Property rights gives room for entrepreneurship which can eventually lead to wealth accumulation. Contract enforcement also generate wealth for individuals.

8 0
3 years ago
Scott Rolen, major league third baseman, agrees to defer $5 million from his salary this year for 10 years at 7 percent compound
iVinArrow [24]

Answer:

What will be the amount of this annuity payment?

$711.888

Explanation:

N Monthly principal interest Net value

                           5.000.000

1 711.888 361.888 350.000 4.638.112

2 711.888 387.220 324.668 4.250.893

3 711.888 414.325 297.562 3.836.568

4 711.888 443.328 268.560 3.393.240

5 711.888 474.361 237.527 2.918.879

6 711.888 507.566 204.322 2.411.313

7 711.888 543.096 168.792 1.868.218

8 711.888 581.112 130.775 1.287.106

9 711.888 621.790 90.097 665.315

10 711.888 665.315 46.572 (0)

7 0
2 years ago
In implementing a lean production system you should work with suppliers to do which of the following? open facilities near your
Lera25 [3.4K]
<span>In implementing a lean production system you should work with suppliers to do which of the following? Reduce lead time. In a lean production system, the ultimate goal is to reduce the amount of time wasted on production activities. Maximizing your time allows for more productivity and the work gets completed at a faster rate. </span>
7 0
3 years ago
A manufacturer replenishes their packaging materials according to the economic order quantity model. They use 25,000 cases of pa
Sergio [31]

Answer:

$300,000 in total, $6000 per order

Explanation:

25,000/500 = 50

50*12=600

500*12=6000

50*6000=300000

7 0
3 years ago
Read 2 more answers
The _____ frame of an organization focuses on providing harmony between the needs of the organization and the needs of people.
earnstyle [38]

Answer:

The correct answer is: human resources.

Explanation:

The Human Resources (<em>HR</em>) department is in charge of recruiting and selecting new personnel with the characteristics and profile the organization is looking for. Besides, the HR role is to provide employees the sources necessary so they can perform their duties in a proper environment within the firm.

3 0
3 years ago
Other questions:
  • The _______________ and the _____________________ along with the Funding Plan should be established early on in the Joint Capabi
    9·1 answer
  • Compare and contrast the views of big business and conservationists on the use of natural resources
    15·1 answer
  • In a large sample of customer accounts, a utility company determined that the average number of days between when a bill was sen
    13·1 answer
  • Accounting for pensions receives more attention in the United States (US) than in other countries. Discuss reasons that would ex
    14·1 answer
  • is a structured approach used by decision makers to develop a sourcing strategy for a product or service, based on the value pot
    6·1 answer
  • On December 1, 2008, Secure Company bought a 90-day forward contract to purchase 200,000 euros (€) at a forward rate of €1 = $1.
    9·1 answer
  • Write two to four sentences setting forth the long-term direction and strategic path that management intends to follow. The stat
    15·1 answer
  • When a sales manager determines that her staff is not making sufficient progress toward meeting monthly sales quotas and develop
    15·1 answer
  • Dusan is a member of the Tonda LLC, and all members have equal interests in capital and profits. The LLC has made an optional ad
    15·1 answer
  • The security that represents the residual ownership of a firm and has no priority in bankruptcy is called:________
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!