Answer:
a. Municipal bond
b. Yes. To Corporate Bond.
Explanation:
Municipal bonds are tax exempt so the better option will be the one offering a higher return after it is adjusted for tax.
a. Corporate after-tax rate = 9.5% * ( 1 - 33%)
= 0.06365
= 6.4%
<em>Municipal rate is higher at 7% and so is a better option. </em>
b. Corporate after-tax rate = 9.5% * ( 1 - 15%)
= 0.08075
= 8.08%
<em>Corporate bond return is now higher than Municipal bond so is a better option.</em>
Answer:
9.24 days
Explanation:
Calculation for How long does it take for the firm's credit customers to pay for their purchases
First step is to calculate Receivables turnover
Using this formula
Receivables turnover=Sales/Average accounts receivable
Let plug in the formula
Receivables turnover = $387,000/$9,800
Receivables turnover= 39.48979592
Last step is to calculate the Receivables period using this formula
Receivables period = Numbers of days in a year/Receivables turnover
Let plug in the formula
Receivables period = 365 days/39.48979592
Receivables period = 9.24 days
Therefore How long does it take for the firm's credit customers to pay for their purchases is 9.24 days
Answer:
decrease the bid price in the OTCBB
Explanation:
Given that, the dealer's Bid price is too high, this is believed to be the reason behind the sellers trying to make orders. Hence, to reduce the orders, the dealer will lower the Bid price.
Hence, in this case, the best answer or alternative to be considered is that, the dealer would most likely decrease the bid price in the OTCBB, this is specifically to discourage the sellers.