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kari74 [83]
3 years ago
11

A bond issued by the state of Alabama is priced to yield 6.40%. If you are in the 30% tax bracket, this bond would provide you w

ith an equivalent taxable yield of _________.
Business
1 answer:
Semmy [17]3 years ago
3 0

Answer:

9.14%

Explanation:

Tax exempt yield = 6.40% = 0.064

Marginal tax rate = 30% = 0.30

Equivalent taxable yield = Tax exempt yield / (1 - marginal tax rate)  

Equivalent taxable yield = 0.064 / (1 - 0.30)

Equivalent taxable yield = 0.064 / 0.70

Equivalent taxable yield = 0.0914286

Equivalent taxable yield = 9.14%

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Blank is a checking that is dishonored because of insufficient funds
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You expect General Motors (GM) to have a beta of 1.3 over the next year and the beta of Exxon Mobil (XOM) to be 0.9 over the nex
professor190 [17]

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d

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Systemic risk are risk that are inherent in the economy. They cannot be diversified away. They are also known as market risk. examples of this risk include recession, inflation, and high interest rates. Investors should seek compensation for systemic risk. Systemic risk is measured by beta. The higher beta is, the higher the systemic risk and the higher the compensation demanded for by investors

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3 0
3 years ago
Company A is considering a merger with Company B. A has 43,000 shares outstanding at a market price of $32 a share. B has 12,800
mrs_skeptik [129]

Answer: $1381400

Explanation:

From the question, we are informed that Company A is considering a merger with Company B and that A has 43,000 shares outstanding at a market price of $32 a share while B has 12,800 shares outstanding priced at $44 a share and the merger is expected to create $5,400 of synergy.

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